Greek electrical equipment market declines further

Greek electrical equipment market shrank further hit by a collapse in building activity as a result of an economic crisis prevailing in the country since 2009, although demand -although weak- showed signs of stabilization in the last two years, a report by IBHS SA said.

The report said that private building activity was on a decline since 2005, for an accumulated decline of 89 pct in the last decade (volume).

“Conditions of declining demand have limited production activity in the sector, with the industrial production index falling by 10.5 pct in 2014, for the sixth successive year, falling 51 pct compared with 2008 levels.

Political developments in 2015, combined the imposition of capital controls in July, hit productive activity in the first 11 months of the year, with activity down 6.8 pct on an annual basis. The volume of production fell 19 pct in July after the imposition of capital controls.

The switch and other connection devices sector fell 8.6 pct, the report said, followed by the lighting equipment (-7.6 pct), distribution devices and electricity power control (-6.8 pct), while production volume in transformers rose 8.1 pct and in wires was up 6.7 pct.

The IBHS report analyzed 49 production companies and 48 enterprises in the retail sector.

In 2014, production companies showed an accumulated turnover fell 10.8 pct to 242.61 million euros, EBITDA fell to 9.76 million euros, while pre-tax results showed a loss of 2.12 million euros after profits of 10.46 million euros in the previous year. EBITDA margin fell two points to 6.9 pct, while EBIT margin rose to 1.2 pct.

Electrical equipment retail companies recorded an accumulated turnover of 208.41 million euros in 2014, down 2.6 pct from the previous year, EBITDA doubled to 10 million euros, while pre-tax results showed earnings of 160,000 euros, after a loss of 4.66 million euros in 2013. EBITDA margin improved to 5.0 pct while EBIT margin was stable at 0.3 pct.