HARJU ELEKTER

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO THE FINANCIAL RESULTS, Q1 2000



In Q1 2000 AS Harju Elekter group's net sales amounted to EEK 43.0 

mln (Q1 1999 - EEK 35.4 mln) and net profit EEK 5.2 mln (Q1 1999 - 

EEK 4.1 mln). The group's turnover grew in Q1 on annual basis by 21% 

and net profit by 27%. 

In Q1 1999 the profit figure also included EEK 2.6 mln of 

extraordinary financial income from sale of shares in subsidiary AS 

Saajos Balti. Hence the comparable figure for profit from normal 

operations has almost doubled (Q1 2000 - EEK 5.2 mln; Q1 1999 - EEK 

2.7 mln). 

Consolidated profit from subsidiaries was EEK 0.7 mln (Q1 1999 - EEK 

0.8 mln loss). This year's Q1 reports do not include the results of 

AS Glamox-Harju Elekter as the preliminary negotiations for sale of 

Harju Elekter's 20% holding in the company are in progress.



Parent company's turnover grew by 16% (Q1 2000 - EEK 36.6 mln; Q1 

1999 - EEK 31.4 mln) and net profit by 16% (Q1 2000 - EEK 4.3 mln; Q1 

1999 - EEK 3.7 mln).



Turnover by production units:

		 	     Q1 2000	     Q1 1999	 		 

· Cable harnesses 	EEK 15.6 mln	EEK 10.9 mln   143.1% 

· Electrical equipment 	EEK 14.8 mln	EEK 15.4 mln    96.1%	

· AS Eltek		 EEK 7.8 mln	 EEK 4.8 mln   162.5%



Output of cable harnesses for cars and electronic equipment grew 

mainly due to increased supply to North European car and electronics 

industry.

Increased turnover of AS Eltek is mainly due to substantially grown 

supply of UPS cases to APC Denmark A/S under the respective 

agreement, effective as of February 2000. 





Andres Allikmäe

Chairman of the Management Board

+372 67 47 400





Lembit Libe

Chief Economist

+372 67 47 412