AS HARJU ELEKTER

ANNOUNCEMENT 

15.03.99

 

COMMENTARY TO THE 1998 AUDITED FINANCIAL RESULTS 

 

The 1998 net sales of AS Harju Elekter totaled 147.9 million EEK (97 - 

108.3 million EEK), whereas the increase since last year was 36.6 %.

 

Compared with the last year, the production sector’s turnover (120.2 

million EEK) increased by 41%, whereas the growth of turnover by main 

fields of activity was as follows:

					1998			1997		

· Electrical devices		55.4 million EEK	37.3 million EEK (148.5%)

· wire bandages for cars

  and electronic devices	43.6 million EEK 	33.4 million EEK (130.5%)

· Fireproof doors		14.3 million EEK	 9.2 million EEK (155.4%)

 

The volume of exports totaled 64.6 million EEK (97 - 48.3 million EEK), 

which accounted for 43.7 % of total turnover. 

 

The turnover from commercial and intermediary activities increased by 21% 

since the last year (98 - 20.7 million EEK; 97 - 17.0 million EEK). The 

store opened in Tallinn in the beginning of 1997 had a turnover equal to 

the one of the store located in Keila, and it has a good growth potential.

 

The consolidated 1998 gross profit of AS Harju Elekter amounted to 16.1 

million EEK (97 - 10.5 million EEK), which is 53% higher than last year.  

The commercial profit accounted for 74% of the operating profit (97 - 53%). 

The profit of subsidiaries and associated companies totaled 2.4 million 

EEK. 

 

Significant changes in the financial activities of AS Harju Elekter: 

· in the beginning of 1998, Harju Elekter purchased from OÜ Harju KEK 100% 

of the shares of AS Eltek.

· at the end of the year, a new company, AS Saajos Balti, was established 

in joint venture with a Finnish company OY Saajos International Ltd. on a 

basis of fireproof door production factory of Harju Elekter. AS Harju 

Elekter owns 55% shareholding in this company. The company’s growth 

potential was increased by additional investments and know-how.

 

The investment volume of AS Harju Elekter was the largest of the past years 

- totaling 24 million EEK (97 -10.1 million EEK), of which 19.8 million EEK 

was invested in tangible assets. The following objects were completed: new 

substation production factory in Keila - 4.8 million EEK, car wire 

production factory’s department in Haapsalu - 5.4 million EEK, and expansion 

of AS Keila Kaabel production facilities - 3.2 million EEK. Investment in 

Haapsalu was also useful due to the fact that the investments outside of 

Tallinn and Harju counties are exempt from taxes.  

 

 

Endel Palla

Chairman of the Management Board

+372 674 7400