HARJU ELEKTER

COMMENTARY TO THE FINANCIAL RESULTS

 

COMMENTARY TO THE AUDITED FINANCIAL RESULTS FOR YEAR 1999

 

In 1999 the net sales of the Group amounted to 158.4 million kroons 

(1998 - 161.3 million kroons), the turnover of the parent company 

was 137.7 million kroons (1998 - 147.9 million kroons). Taking into 

account that the 1998 net sales included 14.3 million kroons sales 

revenue from Fireproof Doors Factory (now AS Saajos Balti), the 

relative growth rate for the group was 7.8%.

 

Turnover by main fields of activity: 

		 		 1999	         1998 	    change

· Cable harnesses	     48.3 mln EEK    43.6 mln EEK    110.8% 

· Electrical equipment       49.3 mln EEK    55.4 mln EEK     89.0%

· Cases for communications   28.7 mln EEK    18.7 mln EEK    153.5%

  and IT-equipment 

 

production of cable harnesses increased in the context of increased 

output volume of PKC Group Oyj (co-operation partner of Harju 

Elekter) directed to North European car and electronics industry.  

Sales on domestic electrical construction market fell 20%, 

resulting in decreased sales volume but larger market share. 

Exports accounted for 46.5 % (98 - 41.4 %) of total sales.

 

The Group's net profit for the financial year was 22.1 million 

kroons (1998 - 16.1 million kroons), providing 37.3% y-o-y 

increase. Due to the conditions of economic recession the company's 

operating profit fell 10% on annual basis (1999 - 12.0 million 

kroons; 1998 - 13.3 million kroons). Net financial income increased 

from 4.7 million kroons in 1998 up to 8.4 million kroons in 1999. 

Profit before taxes was higher by 8.2%. Due to the provisions of 

the new Law on Income Tax, effective as of 01.01.2000, the deferred 

income tax in the amount 3.1 million kroons was transferred to the 

owners' equity section of the income statement. Earnings per share 

stood at 12.27 kroons (8.97 kroons in 1998).

 

Substantial changes in group's activities: 

- Electrical Equipment Factory introduced to the market a 

substation in a sheet metal enclosure HEKAVM1, manufactured with 

the license of the French company Schneider Electric Industry. 

- Cable Harnesses Factory enlarged the area of its Haapsalu plant, 

employing 67 people as of the end of 1999.

- Subsidiary AS Eltek was chosen to be the supplier of UPS-cases 

for an American company APC. The delivery volumes stipulated in the 

contract will help to increase the company's turnover in 2000 by ca 

50%.

- Harju Elekter sold a part of its holding in AS Saajos Balti (from 

55% to 33.3%) to Inexa Panel A/S, aiming to include finances to 

considerably broaden its future horizons on fireproof doors market 

and to achieve a better synergy with other sub-units of AS Harju 

Elekter. 

 

In 1999 Harju Elekter group made investments in total worth of EEK 

22.2 million. 

 

 

Andres Allikmäe

Chairman of the Management Board

+372 67 47 400