Harju Elekter               FINANCIAL RESULTS                 10.05.2005 

 

FINANCIAL RESULTS, Q1 2005



                                                  1-3/2005   1-3/2004

Key indicators (MEUR)            

Net sales                                         7,2	      	5,5

Operating profit                                  0,4	        0,2

Net profit for the current period                 0,7		3,5



At the end of the period

Total current assets                               9,9		8,2

Total fixed assets                                33,1		26,9

Total assets                                      43,0		35,1

Total liabilities                                  8,1		5,9

Total owners’ equity                              34,0		28,4



Performance indicators (%)

Net sales growth                                  30,6       	21,0

Operating profit growth                          135,5         -34,6

Net profit growth                                -79,8         614,7

Return of sales (operating profit/net sales *100)  6,1           3,4

Net profit margin (net profit /net sales *100)     9,4          63,7

Owners’ equity margin                             79,0          80,8

(equity /balance sheet total *100)



Number of employees on 31.03.2005                 406            361

EPS (EUR)                                         0,12      	0,65

								



The sales revenue of the consolidation group AS Harju Elekter comprised 

MEEK 112,0 (MEUR 7,2) in the Q1 2005, increasing by 31% in comparison with 

the same period of the previous year. Manufacturing contributed 81% of the 

consolidated sales revenue (turnover growth 34%), services contributed 10% 

(turnover growth 33%) and trade accounted for 9% (turnover growth 6%). 

Of the turnover, 77% was generated by revenue from the sales of industrial 

production and 23% by the mediation and sale of services. At the same time 

the sale of industrial output went up by 34% in the first quarter year-on-year 

to EEK 86,3 million (EUR 5,5 million) and the intermediate sale of services 

and goods increased by 19% to EEK 25,7 million (EUR 1,7 million).



68% of the sales revenue of the group was contributed by Estonia (an increase 

in turnover growth by 26% year-on-year), 22% by Finland (turnover growth 36%), 

and 10% Lithuania (turnover growth 54%). Sales to the Estonian market accounted 

for 57%, increasing by 59% to EEK 63,5 million (EUR 4,1 million). Export sales 

formed 43% and increased by 6% to EEK 48,5 million (EUR 3,1 million). Finland 

remained the largest export market with a share of 31% in the turnover.

The total operating profit of the consolidation group AS Harju Elekter was 

MEEK 6,8 or MEUR 0,4, being 2,4 times higher than in the previous year.



The net profit of the group was 10,5 million kroons 10,5 million kroons which 

equals to 0,67 million euros (2004 I quarter: 54,1 million kroons or 3,5 million 

euros). The reason was that in I quarter of 2005 the market price of PKC Group Oy 

share changed only by 0,15 euros and the re-evaluation of the shares gave 

4,4 million kroons (0,28 million euros) financial income, in I quarter of 2004 

the change was 1,10 euros and additional financial income from the re-evaluation 

was 31,6 million kroons (2,02 million euros). Due to the amendment of the Finnish 

income tax law in 2005, PKC Group paid exceptionally big dividend (19,4 million 

kroons or 1,2 million euros), which was received in March 2004. In 2005 the 

receipt of dividends (5,8 million kroons or 0,37 million euros) took place in 

II quarter. 

The group’s operating margin was 6,1% which is 2,7 percentage points higher 

than in the first quarter of 2004. The net margin was 9,4% (63,7% in Q1 of 2004).



EPS was 1,88 kroons or 0,12 euros (Q1 2004: 10,12 kroons or 0,65 euros).



During the accounting period, the Group invested in tangible and intangible 

assets a total of MEEK 18,2 or MEUR 1,16 (Q1 2004: MEEK 15,3 or MEUR 0,98). 

The construction of the substation plant and the new production premises of 

PKC continued. The construction costs and costs of the ventilation systems in 

three months totalled EEK 14,4 million (EUR 0,92 million). The plan is to 

launch the production premises in the second quarter of 2005. The group invested 

EEK 2,4 million (EUR 0,15 million) in machinery and equipment as well as 

EEK 1,3 million (EUR 0,08 million) in acquisition of land. 





BALANCE SHEET, 31.03.05

Consolidated, unaudited



Group

in thousand                   EEK           EUR

ASSETS                     31.03.05 31.12.04 31.12.04 31.12.03

Cash, bank                    37 280  18 786   2 383   1 201

Total customer receivables    48 203  49 824   3 081   3 183

Other current receivables      2 989   4 156     191     266

Accrued income                   707     221      45      14

Prepaid expenses               1 181   1 136      75      73

Total current receivables     53 080  55 337   3 392   3 536

Inventories                   64 402  67 950   4 116   4 343

TOTAL CURRENT ASSETS         154 762 142 073   9 891   9 080

Long-term financ.investments 327 612 323 138  20 938  20 652

investment properties         86 086  86 880   5 502   5 553

Tangible assets              102 226  86 551   6 533   5 532

Intangible assets              1 800   1 951     115     125

TOTAL NON-CURRENT ASSETS     517 724 498 520  33 089  31 861

TOTAL ASSETS                 672 486 640 593  42 980  40 941

LIABILITIES AND OWNERS' EQUITY

Debt obligations              20 249  14 380   1 294     919

Customer prepayments           1 466   2 666      94     170

Supplier payables             39 762  45 535   2 541   2 910

Other short-term borrowings    1 177   1 750      75     112

Tax liabilities                5 993   7 560     383     483

Accrued expenses              12 587  12 044     804     770

short-term provision             207     300      13      19

Other prepaid revenue          4 566   3 643     292     233

TOTAL CURRENT LIABILITIES     86 007  87 878   5 497   5 616

TOT.NON-CURRENT LIABILITIES   40 712  17 357   2 602   1 109

TOTAL LIABILITIES            126 719 105 235   8 099   6 726

minority interests            14 263  14 381     912     919

Share capital                 56 000  56 000   3 579   3 579

Issue premium                  6 000   6 000     383     383

Reserve requirement            8 600   8 600     550     550

Retained profit              460 904 450 377  29 458  28 784

TOTAL OWNERS' EQUITY         531 504 520 977  33 969  33 296

TOT.LIABIL.AND OWNERS'EQUITY 672 486 640 593  42 980  40 941





INCOME STATEMENT,  2005 Q1

Consolidated,unaudited



in thousand                 EEK             EUR

GROUP                        Q1 2005 Q1 2004 Q1 2005 Q1 2004



NET SALES                    112 009  85 733   7 159   5 479

Cost of goods sold           -92 009 -71 670  -5 880  -4 581



Gross profit                  20 000  14 063   1 278     899



Operating expenses, incl.    -13 144 -11 244    -840    -719

Marketing expenses            -5 101  -4 392    -326    -281

Administrative expenses       -8 043  -6 852    -514    -438

Other revenue                    121     185       8      12

Other expenses                  -156    -108     -10      -7



Operating profit               6 821   2 896     436     185



Net financ.incomes/expenses    4 101  51 874     262   3 315

Income from subsidiaries         108    -661       7     -42



Profit from normal operation  11 030  54 109     705   3 458

Corporate Income tax            -126     -16      -8      -1

Profit after taxes            10 904  54 093     697   3 457

Minority interest               -377     543     -24      35

Net profit for the year       10 527  54 636     673   3 492



Basic earnings per share        1,88   10,12    0,12    0,65



Diluted earnings per share      1,88    9,87    0,12    0,63





Andres Allikmäe

Chairman of the Board

+372 6 747 400



For more information: 

Interim report 1-3/2005 of Harju Elekter or 

Karin Padjus, Member of the Board (tel +372 6 747 400).