AS EMV

ANNOUNCEMENT

20.11.98

 

 

COMMENTARY TO AS EMV 1998 9 MONTHS FINANCIAL RESULTS

 

The 1998 9 months’ net sales of the EMV affiliated group were 603.5 

million EEK and gross profit 4.6 million EEK.

 

    		        EMV   		 Net  	  Incl.to other   Consolidated   Profit

     		      ownership        sales       companies in     	sales

                                           	   affiliation

AS EMV                		       514,8		22,4	      492.4	  1,8

AS EMV SOILMEC		100%		32,3		 6,4           25,9       0,4

ZAO EMV			100%		2,1		  -	        2,1       0,3

EMV System-Bau GmbH	100%		9,1		  -	        9,1       0,5

SIA EMV Latvia		100%		29,4		 0,9	       28,5       2,8

AS EMV Kinnisvara	100%		5,8		 2,3	        3,5       0,1

E-Profiil              62,5% 	        9,0		 3,8            5,2      -0,3

AS Maarjamäe Maja      85,7%	       37,0		 0,1           36,9      -0,3

Total:                                                                603,6       5,3

 

 

In addition to the subsidiary, AS EMV also has the following associated 

enterprises: 

AS Pintaro (AS EMV owns 36,0%), respective part in consolidated profit 

1,1 million EEK, and

AS Eesti Ehituseksport  (AS EMV owns 25,0%), respective part in 

consolidated profit 0,4 million EEK.

 

AS EMV allocation of sales and operating profit by activities (in million 

EEK):

                                           Production  Operating profit

General and technical construction		449,2        20,2

Concrete production				 55,2         3,1

Department of ventilation works			 33,3         2,4

Department of explosives			  5,5         0,9

Department of construction mechanism		 23,6         2,6

and transportation

 

Net sales by countries (in million EEK):

Estonia			494,0

Latvia			 95,0

Russia			  5,5

Germany			  9,1

Total:			603,6

 

Compared with the same period last year, the affiliated group’s net sales 

have increased by 278.2 million EEK, or 85%. The total gross profit of 

the affiliated group was 4.6 million EEK, which is 14.7 million EEK less 

than during the same period last year.

 

The largest contribution the sales of the affiliated group was made by AS 

EMV (492.4 million EEK), of which 72% was AS EMV’s general and technical 

construction activities. Export was 18% of the total sales of the 

affiliated group, including export to the Republic of Latvia, which makes 

up for 16% of the total sales of the affiliated group.

 

Decrease of the profit was caused by significantly increased general 

administrative expenses during the I half of the year, and by financial 

expenses which were greater than planned.

 

The general administrative expenses of the affiliated group in the III 

quarter were a total of 8.8 million EEK. The respective expenses in the I 

and II quarter were 9.0 million and 14.4 million EEK. The process of 

reorganization, which is to be finished by the beginning of the next 

year, should enable to cut the costs on the account of general 

administrative expenses.

 

The investment program planned in the beginning of last year, which 

reckoned with 36 million EEK investments, has been revised. The 

investments to the real estate and additional investments to the 

production of concrete would have been added to that after the planned 

share issuance. Due to that, the production of concrete was suspended, 

since it needed significant investments in the near future in order to 

update it (for 1998, the planned amount was 16 million EEK).

Since the sale of the concrete factory took place in the middle of 

October, it is not reflected in the 9 months financial statements.

 

In the III quarter, the non-current assets increased by a total of 0.2 

million EEK.

 

 

Marko Kaha

Financial analyst

tel. +372 6 403 310