The new manufacturing units of Kleemann Group in China and Serbia are set to begin operations, aiming to increase the Groupís production capacity.
More specifically, by the end of July the Chinese subsidiary “Demenxun” will complete its production base, while within the next three months the Serbian subsidiary “Kleemann Liftovi” will commence operations in its production unit. The two factories will produce elevator parts and will be operating supplementary to the main production facility situated in Kilkis.
Meanwhile, the percentage of Kleemann international sales is constantly rising, as in the first quarter of the current year the parent companyís sales abroad increased by 9% in comparison with the relative period of 2011 and the percentage of exports reached 71%. Amongst the 76 countries where Kleemann is exporting, the first place is now occupied by the United Kingdom market, where sales of the parent company increased by 61%. The second and third place in terms of sales belongs to Turkey and Russia, while significant increase is also noted for sales to Germany (by 47%), as well as to Belgium and Poland (from 42% each approximately). It should be stated that the Groupís international sales would have an even greater momentum if the image of Greece was better internationally. The negative publications of the international press about the country, the political instability of recent months, as well as intense rumors of exit from the Eurozone for Greece are an obstacle to the international activities of Greek companies.
Regarding the performance in the domestic market in the first quarter of 2012, the deep recession the country is experiencing and the collapse – in essence – of the Greek construction industry is constantly aggravating the activity of the parent company in Greece and affecting negatively its financial figures. Therefore, the Group for the first time presents loss before taxes of -793 thous euro from 567 thous euro profit in the relative last year period. The results are also negatively affected by increased cost of materials, increased provisions for doubtful debtors of approximately 460 thous euro compared to last year's relative period, losses by the newly created subsidiaries in the United Kingdom and China amounting to 226 thous euro, and by exchange rate differences from its subsidiary in Turkey approximately 268 thous euro compared to last year. The Groupís EBITDA amounted to -53 thous euro, compared to 1,4 mln euro in 2011, and the loss after tax and minority rights was -1,1 mln euro, from 5,1 thous euro in 2011.
It should be noted, that the Company has been awarded the distinction of the strongest financial companies in Greece (ęStrongest Companies in GreeceĽ ICAP GROUP) and the Group presented once again positive operating cash flow, with its net bank loans not exceeding 12,1 mln euro.
Consisted with its mapped corporate strategy and its commitments towards its shareholders, Kleemann continues its effort to expand its presence in international markets. In this context, the Group has recently penetrated into new markets in Latin America, Asia, as well as in countries of the former Soviet Union.