MERKO EHITUS

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO GROUP FINANCIAL RESULTS, 3M 2001



The 3m 2001 unaudited and consolidated net sales of Merko Ehitus 

group amounted to EEK 255.6 million, and net profit was EEK 15.3 

million. The respective figures year ago were net sales of EEK 

210.3 million and net profit of EEK 9.0 million.



The consolidated financial results of Merko Ehitus group include 

the results of parent company AS Merko Ehitus, and its 100% 

subsidiaries SIA Merks (project management and construction) in 

Latvia, UAB Merko Statyba (project management and construction) in 

Lithuania, and Gustaf (construction), and 66% holding in subsidiary 

Merko Tartu (construction), and 65% holding in subsidiary Matek 

(production of small houses and timber construction).

 

In addition to the subsidiaries, the profit figure of Merko Ehitus 

group also includes the results of the affiliated enterprises 

Normanni Linnagrupi AS (project management, 50% holding) and 

Tartu Maja Betoontooted (production of concrete, 25% holding).



Financial ratios illustrating the activities of Merko Ehitus group 

in 3m 2001 were:



		 	      3m 2001	              3m 2000

Net profit margin		 6.0%		 	 4.3%

Gross profit margin		 5.5%		 	 4.4%

Return on equity (annual)	35.7%		 	32.6%

Return on assets (annual) 	13.9%		 	12.2%

Current ratio			 1.6		 	 1.3

Invoice turnover (annual)	 9.4		 	 7.0

Equity-to-assets ratio		44.0%		 	36.0%



The 3m 2001 consolidated income statement and balance sheet are 

compiled in accordance with the principles of the International 

Accounting Standards (IAS), and correspond with the Estonian legal 

acts regulating the accounting principles used.





Ülo Metsaots

CFO

+372 610 5110