Last update: 22.07.2024 09:05 (GMT+3)
Harju Elekter FINANCIAL RESULTS 11/07/2003
FINANCIAL RESULTS, 9 MONTHS 2003
The consolidated net sales of Harju Elekter Group for M9 2003 amounted to
235,4 MEEK or 15,0 MEUR (M9 2002: 186,6 MEEK or 11,3 MEUR). The net profit of
the Group was 110,8 MEEK or 7,1 MEUR (M9 2002: 50,6 MEEK or 3,2 MEUR) and EPS
20,52 EEK or 1,31 EUR (M9 2002: 9,38 EEK or 0,60 EUR).
According to chairman of the management board Andres Allikmäe, the nine
months’ results of the group are very satisfactory. International extension of
the group’s main activity, production and electrical equipment and materials,
has proved fruitful. Accession to the European Union gives additional
opportunities for the company’s successful development.
Sales and revenues
The consolidated net sales of Harju Elekter Group for M9 2003 amounted to
235,4 MEEK or 15,0 MEUR (M9 2002: 186,6 MEEK or 11,3 MEUR), i.e 26,1% growth.
Sales on the domestic market grew by 12,7%, thus accounting for 52,7% (M9
2002: 59,0%) of the consolidated net sales. Sales on foreign markets amounted
to 111,3 MEEK or 7,1 MEUR (M9 2002: 76,5 MEEK or 4,9 MEUR), of which sales in
Finland amounted to 98,6 MEEK or 6,3 MEUR (M9 2002: 65,6 MEEK or 4,2 MEUR), of
which Finnish subsidiary Satmatic Oy contributed 63,1 MEEK or 4,0 MEUR (M9
2002: 4,9 MEEK or 315 TEUR).
In comparison with the same period in 2002, the sale of electrical equipment
to non-Group customers increased to 70,1 MEEK (4,5 MEUR) or 89,8%, of which
58,3 MEEK (3,7 MEUR) was contributed by Finnish subsidiary Satmatic OY. The
sales of the plant of electrical equipment went up 13,9%. Sale of electrical
equipment accounted for 62,9% (9M 2002: 41,8%) of the sales income of the
reporting period of the consolidation group.
Profit
The M9 operating profit of the consolidation group was 14,1 MEEK or 901 TEUR
(M9 2002: 12,5 MEEK or 797 TEUR), including in Q3 6,2 MEEK or 398 MEUR (Q3
2002: 6,0 MEEK or 382 MEUR). Operating margin of the Group in nine months was
6% (9M 2002: 6,7%), which in the third quarter was by 1,3 percentage points
better than the nine-month figure, reaching 7,3% (Q3 2002: 9,7%).
The M9 operating profit of the parent company increased 11,4% in comparison
with the previous period (M9 2003: 12,9 MEEK or 827 TEUR; M9 2002: 11,6 MEEK
or 742 TEUR). Operating margin of Q3 2003 was respectively 11,1% and 11,2% (M9
2003: 9,0%; M9 2002: 8,2).
The profit from financial operations was 96,8 MEEK or 6,2 MEUR (M9 2002: 7,5
MEEK or 481 TEUR). Starting 1 January 2003, shares of PKC in the balance sheet
are calculated in market price, which is increased 2,15 times. The revaluation
of the shares of PKC Group Oyj at the end of the quarter as of 30 September
2003 incurred additional financial income in Q3 in the amount of 29 MEEK (1,9
MEUR) and in nine months 81,3 MEUR (5,2 MEUR). For 2002, PKC Group Oyj paid
dividends in the amount of 4,6 MEEK or 291 TEUR which is more than double the
amount paid last year (M9 2002: 2,1 MEEK or 132 TEUR). The total nine-month
financial income from other financial investments was 86,7 MEEK (5,5 MEUR), of
which Q3 was 29,8 MEEK or 1,9 MEUR. One-off financial income from the sale
of shares of AS Keila Kaabel in July was 6,3 MEEK (403 TEUR).
In summary, the nine-month net profit of the consolidation group was 110,8
MEEK or 7,1 MEUR (M9 2002: 50,6 MEEK or 3,2 MEUR). Net profit margin was 47,1%
(M9 2002: 27,1%) and EPS 20,52 EEK or 1,31 EUR (M9 2002: 9,38 EEK or 0,60
EUR).
Investments and capital employed
During the investment period, the Group invested in tangible assets a total of
37,2 MEEK or 2,4 MEUR (M9 2002: 10,5 MEEK or 673 TEUR), of which construction
and renovation work of buildings and plant was 31,8 MEEK or 2,0 MEUR (M9 2002:
3,5 MEEK or 220 TEUR). Investment in technology was 2,5 MEEK or 160 TEUR (M9
2002: 4,5 MEEK or 285 TEUR).
In July Harju Elekter sold 105 shares of Keila Kaabel, collecting 8,7 MEEK or
559 MEUR and in September it sold 20 000 shares, collecting 4,7 MEEK or 299
TEUR.
To finance the expansion of PKC Estonia and Keila Kaabel, Harju Elekter took a
total of 21,6 MEEK (1,38 MEUR) in long-term loans from banks. The Group spent
a total of 2,1 MEEK (134 TEUR) on capital lease for acquisition of production
equipment. The company repaid in main part of long-term loan and capital rent
during the reporting period a total of 6,5 MEEK or 418 TEUR (M9 2002: 6,6 MEEK
or 420 TEUR). For 2002, shareholders were paid dividends in the amount of 10,8
MEEK or 690 TEUR (2002: 7,6 MEEK or 483 TEUR), which did not incur an income
tax liability on AS Harju Elekter.
Balance sheet
Within nine months, the cost of assets on the consolidated balance sheet
increased by 124 MEEK or 7,9 MEUR (48 MEEK or 3,08 MEUR within nine months of
2002), reaching 402 MEEK or 26 MEUR as at 30 September 2003 (225 MEEK or 14
MEUR on 30 Sept.2002). The market value of shares of PKC Group Oy has
increased 2,14 times in 9 months from 7,1 EUR in the opening balance to 15,24
EUR on the balance sheet date (30.9.2003). Because of the adjustment of
securities, the cost of assets in the balance sheet has gone up by 81,3 MEEK
or 5,2 MEUR.
Personnel
The average number of employees in the group was 286 (M9 2002:373). As of the
balance sheet date 30.09.03 the group employed 294 persons (293 in 2002).
Important events in Q3
In the third quarter, PKC Eesti (former Harju Elekter cable harnesses factory)
received into their use a new 4 500 sq. m. production hall. PKC Eesti has been
renting production premises from Harju Elekter since July 2002. To finance the
construction, AS Harju Elekter procured a MEUR 1 (MEEK 15,6) long-term loan
from a Finnish bank, subject to repayment within eight years.
In July, Harju Elekter sold 105 shares of AS Keila Kaabel. The extraordinary
general meeting of shareholders decided to issue 200 new shares of AS Keila
Kaabel by way of placement with Draka NK Cables for the purpose of financing
investments and know-how. After the transaction, the share capital of Keila
Kaabel is 26 MEEK (1,6 MEUR) which divides as follows between the parties
concerned: Harju Elekter - 34% and Draka NK Cables - 66%.
On 8 September 2003, AS Harju Elekter signed preliminary contracts for
purchase of procure of a 51% shareholding in the Lithuanian company UAB Rifas
by acquiring 1 250 common shares or 25% of the company’s shares from former
owners and with the issue of 2 650 new common shares placed with Harju
Elekter. The transaction value was 10,6 MEEK (0,68 MEUR). Since 1 October,
after the sale and purchase transaction, 51% of UAB Rifas is owned by AS Harju
Elekter and 49% is owned by private persons of the Republic of Lithuania. UAB
Rifas was founded in 1991. The main business of the company is the manufacture
and sale of electrical control and distribution units and the design and
installation of industrial automation equipment. The unconsolidated sales of
UAB Rifas for 2002 were 7 MLIT or 32 MEEK. Unconsolidated sales of nine months
2003 were 22,5 MEEK or 1,4 MEUR (M9 2002: 20,7 MEEK or 1,3 MEUR). Besides the
parent company, the Rifas Group comprises the 51% subsidiaries UAB Automatikos
Iranga and UAB Birzu Montuotojas. The Group employs 61 persons. After having
acquired the subsidiary, Harju Elekter has now good prospects to increase the
market share in the Lithuanian energy distribution and building sector. The
capacity of the Rifas plant will be doubled to promote sales in Lithuania.
Close cooperation between the Estonian, Finnish, and Lithuanian subsidiaries
of Harju Elekter Group will imply a wider product range.
For the purpose of expanding the core business of Harju Elekter in Lithuania
and financing the acquisition of the subsidiary, Harju Elekter sold in
September its relatively passive investment in PKC Group Oyj of 20,000 shares
and another 20,000 shares in October, earning a total of 11,6 MEEK (0,74
MEUR). After the transaction Harju Elekter owns 11% of shares of PKC Group.
Andres Allikmäe
Chairman of the Board
+372 6 747 400
BALANCE SHEETS
BALANCE SHEET OF THE GROUP, 30.09.2003
Consolidated, unaudited
in thousand EEK EUR
ASSETS 30.09.03 31.12.02 30.09.03 31.12.02
Cash, bank 12 496 11 620 799 743
Total customer receivables 33 401 28 705 2 135 1 834
Other current receivables 3 916 2 035 250 130
Accrued income 1 527 14 98 1
Prepaid expenses 1 653 753 106 48
Total current receivables 40 497 31 507 2 588 2 013
Raw materials and inventories 40 240 35 527 2 572 2 271
Goods 6 062 4 616 387 295
Prepayments to suppliers 154 0 10 0
Total inventories 46 456 40 143 2 969 2 566
TOTAL CURRENT ASSETS 99 449 83 270 6 356 5 322
Stock and shares in ass.comp. 25 626 26 586 1 638 1 699
Other shares 149 354 70 803 9 545 4 525
Other long-term receivables 77 379 5 24
Total financial investments 175 056 97 768 11 188 6 249
Plant and equipment 102 183 77 556 6 531 4 957
Other equipment and fixtures 50 934 46 385 3 255 2 965
Other inventory 3 551 3 277 227 209
Accumulated depreciation -41 676 -35 288 -2 664 -2 255
Construction-in-progress 11 081 3 556 708 227
Prepayments for fixed assets 35 28 2 2
Total tangible assets 126 109 95 514 8 060 6 104
Licences 1 126 1 206 72 77
Goodwill 0 16 0 1
Total intangible assets 1 126 1 222 72 78
TOTAL NON-CURRENT ASSETS 302 291 194 504 19 320 12 431
TOTAL ASSETS 401 740 277 774 25 676 17 753
LIABILITIES AND OWNERS' EQUITY
Debt obligations 7 160 12 360 458 790
Customer prepayments 126 193 8 12
Supplier payables 28 883 22 438 1 846 1 434
Other short-term borrowings 1 695 1 251 108 80
Tax liabilities 3 250 5 405 208 345
Accrued expenses 7 614 5 869 487 375
Other prepaid revenue 648 0 41 0
TOTAL CURRENT LIABILITIES 49 376 47 516 3 156 3 037
TOTAL NON-CURRENT LIABILITIES 27 791 5 707 1 776 365
TOTAL LIABILITIES 77 167 53 223 4 932 3 402
Share capital 54 000 54 000 3 451 3 451
Restricted reserves 8 600 8 600 550 550
Retained earnings 151 151 108 698 9 661 6 947
Net profit for the year 110 822 53 254 7 083 3 404
TOTAL OWNERS' EQUITY 324 574 224 551 20 744 14 351
TOT.LIABIL.AND OWNERS' EQUITY 401 740 277 774 25 676 17 753
BALANCE SHEET OF THE PARENT COMPANY, 30.09.2003
Consolidated, unaudited
in thousand EEK EUR
ASSETS 30.09.03.31.12.02.30.09.03.31.12.02.
Cash, bank 10 731 11 165 686 714
Total customer receivables 20 685 12 075 1 322 772
Other current receivables 7 484 8 056 478 515
Accrued income 1 525 0 97 0
Prepaid expenses 1 455 564 93 36
Total current receivables 31 149 20 694 1 991 1 323
Raw materials and inventories 22 695 16 690 1 450 1 067
Goods 6 014 4 575 384 292
Prepayments to suppliers 154 0 10 0
Total inventories 28 862 21 265 1 845 1 359
TOTAL CURRENT ASSETS 70 742 53 124 4 521 3 395
Stock and shares in subs. 14 115 13 759 902 879
Other long-term receiv.from sub 6 780 6 780 433 433
Stock and shares in ass.comp. 25 626 26 587 1 638 1 699
Other shares 149 354 70 803 9 545 4 525
Other long-term receivables 77 379 5 24
Total financial investments 195 952 118 308 12 524 7 561
Plant and equipment 102 057 77 428 6 523 4 949
Other equipment and fixtures 30 268 26 033 1 934 1 664
Other inventory 1 861 1 751 119 112
Accumulated depreciation -33 215 -28 798 -2 123 -1 841
Construction-in-progress 11 081 3 556 708 227
Prepayments for fixed assets 35 28 2 2
Total tangible assets 112 087 79 998 7 164 5 113
Licences 555 750 35 48
Total intangible assets 555 750 35 48
TOTAL NON-CURRENT ASSETS 308 594 199 055 19 723 12 722
TOTAL ASSETS 379 336 252 179 24 244 16 117
LIABILITIES AND OWNERS' EQUITY
Debt obligations 1 234 5 516 79 353
Customer prepayments 95 193 6 12
Supplier payables 21 594 13 501 1 380 863
Other short-term borrowings 2 502 1 269 160 81
Tax liabilities 1 269 2 525 81 161
Accrued expenses 3 993 3 191 255 204
Other prepaid revenue 648 41 0
TOTAL CURRENT LIABILITIES 31 334 26 195 2 003 1 674
TOTAL NON-CURRENT LIABILITIES 23 429 1 433 1 497 92
TOTAL LIABILITIES 54 763 27 628 3 500 1 766
Share capital 54 000 54 000 3 451 3 451
Restricted reserves 8 600 8 600 550 550
Retained earnings 151 151 108 698 9 660 6 947
Net profit for the year 110 822 53 254 7 083 3 404
TOTAL OWNERS' EQUITY 324 574 224 551 20 744 14 351
TOT.LIABIL.AND OWNERS' EQUITY 379 336 252 179 24 244 16 117
INCOME STATEMENTS
INCOME STATEMENT OF THE GROUP, M9 2003
Consolidated,unaudited
in thousand EEK EUR
Group M9 2003 M9 2002 M9 2003 M9 2002
NET SALES 235 382 186 636 15 044 11 928
Cost of goods sold -191 419 -152 323 -12 234 -9 735
Gross profit 43 964 34 313 2 810 2 193
Operating expenses, incl. -29 587 -21 707 -1 891 -1 387
Marketing expenses -11 965 -8 422 -765 -538
Administrative expenses -17 622 -13 285 -1 125 -849
Other revenue 169 290 11 19
Other expenses -445 -425 -28 -26
Operating profit 14 101 12 471 901 797
Financial income and expenses, incl.
-from associated companies 10 838 6 005 693 384
-from other holdings 86 731 2 254 5 542 144
-interest expense -918 -902 -59 -58
-profit/loss from foreign exch -38 -29 -2 -2
-other fin.income/expenses 140 194 9 12
Tot.fin.income and expenses 96 754 7 522 6 183 481
Profit from normal operations 110 855 19 993 7 085 1 278
External income 0 30 641 0 1 958
Corporate Income tax -33 -2 0
Net profit for the year 110 822 50 634 7 083 3 236
Basic earnings per share 20,52 9,38 1,31 0,60
Diluted earnings per share 20,20 9,38 1,29 0,60
INCOME STATEMENT OF THE GROUP, 2003 Q3
in thousand EEK EUR
Group Q3 2003 Q3 2002 Q3 2003 Q3 2002
NET SALES 85 816 61 464 5 485 3 928
Cost of goods sold -69 727 -48 418 -4 455 -3 094
Gross profit 16 090 13 046 1 028 834
Operating expenses, incl. -9 927 -7 029 -634 -449
Marketing expenses -4 209 -2 777 -269 -176
Administrative expenses -5 718 -4 252 -365 -272
Other revenue 127 51 8 3
Other expenses -68 -86 -4 -5
Operating profit 6 222 5 982 398 382
Financial income and expenses, incl.
-from associated companies 9 600 3 648 614 233
-from other holdings 29 847 28 1 908 2
-interest expense -421 -278 -27 -18
-profit/loss from foreign exch -8 -29 -1 -2
-other fin.income/expenses 50 110 3 7
Tot.fin.income and expenses 39 069 3 479 2 497 222
Profit from normal operations 45 291 9 461 2 895 605
External income 0 29 915 0 1 912
Corporate Income tax -33 -2 0
Net profit for the year 45 258 39 376 2 893 2 517
Basic earnings per share 8,38 7,29 0,54 0,47
Diluted earnings per share 8,21 7,29 0,52 0,47
INCOME STATEMENT OF THE PARENT COMPANY, M9 2003
Unaudited
in thousand EEK EUR
Parent company M9 2003 M9 2002 M9 2003 M9 2002
NET SALES 143 675 141 369 9 182 9 035
Cost of goods sold -112 825 -113 246 -7 211 -7 238
Gross profit 30 849 28 123 1 972 1 797
Operating expenses, incl. -17 662 -16 441 -1 129 -1 051
Marketing expenses -6 681 -6 500 -427 -415
Administrative expenses -10 980 -9 941 -702 -635
Other revenue 130 253 8 16
Other expenses -378 -325 -24 -21
Operating profit 12 939 11 610 827 742
Financial income and expenses, incl.
-from subsidiaries 293 299 19 19
-from associated companies 10 838 6 005 693 384
-from other holdings 86 731 2 255 5 543 144
-interest expense -472 -391 -30 -25
-profit/loss from foreign exch -15 -12 -1 -1
-other fin.income/expenses 507 227 32 15
Tot.fin.income and expenses 97 883 8 383 6 256 536
Profit from normal operations 110 822 19 993 7 083 1 278
External income 0 30 641 0 1 958
Net profit for the year 110 822 50 634 7 083 3 236
Basic earnings per share 20,52 9,38 1,31 0,60
Diluted earnings per share 20,20 9,38 1,29 0,60
INCOME STATEMENT OF THE PARENT COMPANY, 2003 Q3
in thousand EEK EUR
Parent company Q3 2003 Q3 2002 Q3 2003 Q3 2002
NET SALES 49 308 48 401 3 151 3 093
Cost of goods sold -38 857 -38 388 -2 483 -2 453
Gross profit 10 451 10 013 668 640
Operating expenses, incl. -6 296 -5 849 -403 -374
Marketing expenses -2 295 -2 527 -147 -162
Administrative expenses -4 001 -3 322 -256 -212
Other revenue 50 44 3 3
Other expenses -164 -72 -10 -5
Operating profit 4 041 4 136 258 264
Financial income and expenses, incl.
- from subsidiaries -665 -3 888 -42 -248
- from associated companies 1 163 1 577 74 101
- from other holdings 53 398 11 3 413 1
- interest expense -155 -106 -10 -7
- profit/loss from foreign -15 -13 -1 -1
- other financial income/ex 153 51 10 3
Total financial income and exp 53 879 -2 368 3 444 -151
Profit from normal operations 57 920 1 768 3 702 113
External income 0 4 039 0 258
Net profit for the year 57 920 5 807 3 702 371
Basic earnings per share 10,73 1,08 0,69 0,07
Diluted earnings per share 10,59 1,08 0,68 0,07
Karin Padjus
Chief accountant
+372 6747 403
Moonika Vetevool
PR manager
+372 6712 761
Sitemap