AS VIISNURK

COMMENTARY TO THE FINANCIAL RESULTS

13.10.1999

 

 

COMMENTARY TO THE FINANCIAL RESULTS 09/1999

 

The 9 months' consolidated net sales of AS Viisnurk amounted to 135.5 

million EEK and net profit 15.5 million EEK.         

The turnover of AS Viisnurk during this period was allocated between 

the subdivisions of the company as follows (in million EEK):

 

				1999		1998

Ski factory			39.6		43.2

Furniture factory		44.2		39.5

Particle board factory	        47.2		48.1

Heat energy			 3.0		 3.5

Other				 1.5		 2.2

 

Decline in the ski factory's turnover was mostly caused by the clients' 

wish to leave the ordered skis in the company's warehouse until the 

beginning of the winter season. The ski factory's results were also 

impacted by the price war started by the eastern-based competitors in 

production of cheaper-class skis. In order to avoid possible negative 

results, the ski factory will focus on production of high and average 

price class skis, and increase the sales of skis produced under the 

company's own trademark (VISU). The company has also initiated the 

project of development of top-class competition skis.

 

The share of exports in the company's 9 months' turnover was 87%. Sales 

on foreign markets during the current year have not reached the projected 

volume and profitability. The most substantial setback was on the German 

market, where the whole furniture market is currently in recession. In 

order to overcome the nadir, the factory will continue to improve the 

production efficiency and increase the sales on the Scandinavian markets.

 

The particle board factory will continue in accordance with the plans. 

Compared to the last year's results, one positive change is the increased 

share of high-profitability 'Isotex' boards in the factory's total sales. 

 

AS Viisnurk earned in Q3 extraordinary financial income from sale of 

holding in subsidiary OÜ Ülejõe Soojusvõrk.

 

 

Andrus Aljas

Financial Director

+372 44 78 355