AS VIISNURK

ANNOUNCEMENT

19.07.1999

 

COMMENTARY TO THE H1 1999 FINANCIAL RESULTS 

 

The H1 1999 consolidated net sales of AS Viisnurk amounted to 76.6 

million EEK and net profit 5 million EEK. 

The turnover of AS Viisnurk was allocated between the subdivisions 

of 

the company as follows (in million EEK): 

 

                        1999            1998

Ski factory             11.5            15.1

Furniture factory       29.4            25.1

Particle board factory  29.9            30.4

Heat energy              2.8             3.2

Other                    3.0             1.5

 

 

The decrease in the ski factory’s turnover was mostly caused by 

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

until the beginning of the winter season, hence a major share of 

the 

factory’s sales will be postponed to Q3 and Q4. To balance the 

company’s activities during the year, Viisnurk ski factory 

increased 

the share of retailing (contract with Wilson Sporting Goods) and 

expanded of production of hockey sticks; the company also 

subcontracted 

to Viisnurk furniture factory for production of wooden components.

 

Main problem of the furniture factory during the first half of the 

year 

has been low profit margin, mainly caused by nadir in furniture 

industry all over the world, which in turn has an impact on the 

prices 

of furniture. The factory plans to invest heavily in the near 

future in 

order to increase its output and remain competitive.

 

The particle board factory has overcome the difficulties it 

experienced 

in the beginning of the year due to low market demand, and will 

continue production at projected volumes and profitability.

 

 

Andrus Aljas

Financial Director

+372 44 78 355