AS HARJU ELEKTER

ANNOUNCEMENT

06.08.99

 

COMMENTARY TO THE CONSOLIDATED FINANCIAL RESULTS 06/99

 

The H1 1999 consolidated net sales of AS Harju Elekter amounted to 

70.7 million EEK (H1 98 -- 73.8 million EEK) and net profit 10.5 

million EEK (H1 98 -- 10.2 million EEK). 

 

The last year’s turnover figure included the turnover of the 

fireproof door production plant, which as of 01.01.99 operates as 

an independent subsidiary under the name of AS Saajos Balti. Hence, 

the comparable increase in turnover this year amounts to 4.7% (H1 99 -- 

70.7 million EEK; H1 98 -- 67.5 million EEK).

 

Exports accounted in H1 for 51.3% (36.2 million EEK) of total 

turnover, exceeding the last year’s result by 6.4% (H1 98 -- 33.1 

million EEK, or 44.9% of total turnover). 

 

 

Turnover of plants and subsidiaries: 

                                                     H1 1999         H1 1998 

 

· Electrical equipment production plant         29.2 mln EEK    29.6 mln EEK    99%

· Automobile lead production plant              21.6 mln EEK    23.3 mln EEK    93% 

· AS Eltek                                      11.0 mln EEK     8.0 mln EEK   138%     

        

 

The H1 1999 consolidated net profit totaled 10.5 million EEK, 

accounting for 102.9% of the last year’s respective result (10.2 

million EEK). Financial income account includes proceeds from sale 

of shareholding in subsidiary AS Saajos Balti of 2.6 million EEK and 

dividends received by subsidiary PK Cables 4.4 million EEK (98 -- 

3.5 million EEK). Due to worsened economic climate, the company’s 

profit margin was lowered, resulting in decreased operating profit (H1 99 

-- 5.8 million EEK; H1 98 -- 8.8 million EEK).

 

The financial results of subsidiary AS Eltek are consolidated into 

the group’s reports under row-by-row method, and the results of 

associated companies are expanded under equity method.

 

 

Andres Allikmäe

Chairman of the Management Board