HARJU ELEKTER

ANNOUNCEMENT



COMMENTARY TO FINANCIAL RESULTS 06/2000



Sales and revenue



AS Harju Elekter H1 2000 consolidated net sales totaled EEK 90.4 mln, 

which is 28% more than in H1 1999 (EEK 70.7 mln). The parent 

company's turnover was EEK 75.5 mln (H1 1999: EEK 61.2 mln),  

providing 23% annual growth. 



No changes occurred in the activity fields of the companies in Harju 

Elekter group. 

Total exports volume was EEK 47.4 mln, which is 17% more than in H1 

1999 (EEK 40.4 mln). Exports accounted for 52% of total sales.

Among the new markets, Harju Elekter increased sales to Denmark 10 

times (from EEK 0.6 mln to EEK 6 mln), due to substantial increase in 

export of UPS-equipment cases by subsidiary AS Eltek to APC Denmark 

A/S under the respective co-operation agreement (effective as of 

February 2000).



Profit



The company's profit from normal operations was EEK 14 mln, providing 

16% y-o-y growth (in H1 1999: EEK 12.1 mln). Consolidated net profit 

figure grew by 33% since no corporate income tax was paid this year 

(H1 1999: EEK 1.6 mln).

Financial income account includes extraordinary income from sale of 

AS Glamox Harju Elekter shares this year (EEK 3.2 mln) and sale of AS 

Saajos Balti shares last year (EEK 2.6 mln).

In H1 the AS Harju Elekter earnings per share were EEK 2.60 (H1 1999:

EEK 1.95)



Investments and use of capital



In H1 the group made EEK 20.1 mln of new investments to increase 

output capacity, incl. EEK 6.3 mln for reconstruction of buildings, 

EEK 3.5 mln for acquisition of estate in Keila (cable harnesses 

factory's production facilities and land) and acquisition of fully 

automated metal processing center for subsidiary AS Eltek (EEK 8.2 

mln). 



In Q2 the company paid EEK 5.4 mln in dividends for year 1999.



In H1 the group balance sheet size grew by EEK 21.7 mln and tangible 

fixed assets by EEK 17 mln. The group owners equity volume accounted 

for 54% of total balance sheet (61% at 30.06.1999). compared to the 

same period last year, the group's inventories account have grown by 

20%, mainly on the account of EEK 3.5 mln increase in AS Eltek 

inventories, due to 1.6 times increase in output and sales (incl. 2.5 

times higher exports).





Lembit Libe

Chief Economist

+372 67 47 412