AS NORMA

ANNOUNCEMENT

29.10.99

 

 

COMMENTARY TO 9-MONTHS 1999 FINANCIAL RESULTS OF NORMA GROUP

 

Sales and income

 

The 9-months 1999 net sales of Norma group totaled 384.8 million EEK, 

incl. parent company with 344.1 million EEK. Consolidated sales 

increased by 46.5 million EEK on y-o-y basis. 

Income earned by AS Norma accounted for 89%, AS Metaprint 7%, AS Norma 

Maja 1.7% and AS Tööriistavabrik 1.3% of the group's total income. 

The group's main fields of activity include production and sale of 

safety belts, car supplies, sheet iron lithography and real estate 

administration. Sales structure by regions has remained unchanged 

from the previous periods. Exports accounted for 99% of sales revenues, 

whereas 87% of production was exported to the Eastern markets and 12% 

to the West. The remaining share of sales were made in Estonia and the 

Baltic region.

The group's average number of employees was 1161, incl. 793 in the 

parent company.

 

 

Profit

 

The group's pre-tax profit was 122.3 million EEK; net profit totaled 

89.5 million EEK, providing 57.8 million EEK y-o-y increase. Foreign 

exchange gain totaled 13.3 million EEK, of which 12.9 million EEK was 

earned in Q1. For purposes of hedging the currency risks, DEM is used 

as a base currency in transactions between AS Norma and its main 

customer the company AVTOVAZ as of Q2. To achieve higher profit margin, 

AS Norma has also decreased operating expenses and changed output 

structure. Net profit margin stands at 23.3% of net turnover 

(9-m 1998: 9.4%).

 

 

Use of capital

 

Volume of accounts receivable at the end of the period totals 119.0 

million EEK (30.0 million EEK decrease), of which 86% is receivables 

from the Eastern markets. Compared to the standings at 30.09.98, the 

volume of accounts receivable has decreased by 37.1 million EEK. 

 

Receivables from the Eastern markets account for 73% of total receivables. 

The share arrears of total receivables is 41%. The volume of allowances 

for doubtful account is 5% of total receivables.

 

As of the end of September, the group's balance sheet size amounted to 

504.6 million EEK (50.6 million EEK growth), increasing mainly due to 

increased current assets (68.0 million EEK). The company has reduced the 

level of inventories. Compared to the beginning of the year, the volume 

of inventories is 1.4 million EEK lower; liabilities have decreased by 

2.3 million EEK. The group's owners' equity has increased by 49.3 million 

EEK, amounting to 367.2 million EEK (72.8% of balance sheet volume). The 

group has invested 9.5 million EEK to secure output capacity and 

5.2 million EEK into product development.

The average ROE during the period stood at 26.2% (9-m 1998: 9.5%)

 

 

Raivo Harand

Controller

+372 65 00 482