Harju Elekter
Financial results, 1-3/2014

DGAP-News: Harju Elekter /

06.05.2014 / 11:21

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Estonia, 2014-05-06 11:21 CEST (GLOBE NEWSWIRE) -- 

                                          January - March   Year 
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                                            2014     2013    2013
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Revenue (EUR'000)                          9,661   11,390  48,288
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Gross profit (EUR'000)                     1,701    1,721   8,458
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EBITDA (EUR'000)                             441      555   3,269
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EBIT (EUR'000)                                56      188   1,743
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Profit for the period (EUR'000)              371      717   5,173
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incl attributed to Owners of the Company     391      698   5,162
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Business at the beginning of this year has started more slowly than in previous
years. In the accounting quarter, the Group's consolidated revenue was 9.7
million euros, which was 15% lower compared to the reference period. More than
80% of the return on sales originated from the sale of electrical equipment.
The sale of electrical equipment decreased 16.5% in the reporting quarter,
which was also the main reason for the decline in sales revenue. 64.0% of the
Group's products and services were sold in foreign markets, outside Estonia (Q1
2013: 65.3%) and 81% revenues received from the Group's companies home markets
- Estonia, Finland and Lithuania. The biggest contribution to the decline in
sales volumes came from the Lithuanian segment, where sales revenue decreased
by one half with respect to the comparable period and this was mainly caused by
the decline in revenue received from various projects. The biggest markets of
the Group are Estonia and Finland; accordingly, the sales volumes of the Group
are strongly influenced by the events taking place on these markets. In the
reporting quarter, 45% (Q1 2013:47%) of the Group's products and services were
sold on the Finnish and 36% (Q1 2013:35%) in Estonian market. 

The Finnish industrial sector remains in recession, and once again we have to
recognise the 10% drop in the sales volumes of the technology sector, compared
to Q1 2013. Finland is the biggest market of the Group; accordingly, the sales
volumes of the Group are strongly influenced by the events taking place on this
market. In the reporting quarter, 45% of the Group's products and services were
sold on the Finnish market (Q1 2013: 47%). 

In the reporting quarter, the operating expenses decreased by 14.5%, including
the cost of sales by 1.7 million euros or by 17.7% to 8.0 million euros. Since
the cost of sales decreased at a pace that exceeded the return on sales, the
gross profit margin improved by 2.5 percentage points to 17.6% in comparison to
the indicator for the comparable period. 

In the reporting quarter, the distribution costs increased by 52,000 euros to
651,000 euros, the rate of distribution costs to revenue accounted for 6.7% (Q1
2013: 5.3%). Administrative expenses increased by 4% to 976,000 euros, and the
rate of administrative expenses to revenue accounted for 10.1%, having
increased by 1.9 percentage points. 

In Q1 2014, the average 440 people worked in the Group − on the average by 22
persons less than in the reference period. In the first quarter, employee wages
and salaries totalled 2,170 (Q1 2013: 2,108) thousand euros. The average wages
per employee per month amounted 1,645 (2013 Q1: 1, 520) euros. In the second
half of 2013, the salaries of the Group's employees were adjusted, which was
also the main cause of the increase in fixed costs. In the reporting quarter
the labour and salary costs increased by 2.9%, which also brought with it a
decrease in the operating profit margin. 

The Group's operating profit of Q1 2014 was 56 (Q1 2013: 188) thousand euros
and EBITDA 441 (Q1 2013: 555) thousand euros. Return of sales for the
accounting quarter was 0.6% (Q1 2013: 1.7%) and return of sales before
depreciation 4.6% (Q1 2013: 4.9%). 

Group consolidated from the associated company a profit of 324,000 (Q1 2013:
75,000) euros. 

Overall, the consolidated net profit of the Q1 2014 was 371,000 (Q1 2013:
717,000) euros, and the Q1 2013 figure includes the profit from the sale of
financial assets in the amount of 453,000 euros.  The share of the owners of
the Company in Q1 2014 was 391,000 (Q1 2013: 698,000) euros and EPS was 0.02
(Q1 2013: 0.04) euros. 

Andres Allikmäe
Managing director/ CEO
+372 674 7400

For more information: Internal report 1-3/2014



AS HARJU ELEKTER                                           
BALANCE SHEET, 31.03.2014                                  
Consolidated, unaudited                                    
Group                                                      
EUR'000                                                    
ASSETS                                   31.03.14  31.12.13
Cash and cash equivalents                   4 186     4 102
Trade receivables and other receivables     5 928     5 699
Prepayments                                   363       256
Prepaid income tax                             54        41
Inventories                                 6 812     5 801
TOTAL CURRENT ASSETS                       17 343    15 899
Deferred income tax asset                       6         7
Investments in associates                   3 922     3 598
Other long-term financial investments      29 319    31 339
Investment property                        11 676    11 663
Property, plant and equipment               8 066     8 129
Intangible assets                             498       436
Total non-current assets                   53 487    55 172
TOTAL ASSETS                               70 830    71 071
LIABILITIES AND OWNERS' EQUITY                             
Interest-bearing loans and borrowings         582       654
Trade payables and other payables           6 151     4 437
Tax liabilities                               761       969
Income tax liabilities                         15        15
Short-term provision                           32        36
TOTAL CURRENT LIABILITIES                   7 541     6 111
NON-CURRENT LIABILITIES                     1 141     1 141
TOTAL LIABILITIES                           8 682     7 252
Share capital                              12 180    12 180
Share premium                                 240       240
Restricted reserves                        29 394    31 424
Retained earnings                          19 044    18 635
TOTAL OWNERS' EQUITY                       60 858    62 479
Non-controlling interests                   1 290     1 340
TOTAL EQUITY                               62 148    63 819
TOT.LIABILIT.AND OWNERS' EQUITY            70 830    71 071
                                                           
                                                           
INCOME STATEMENT,  1-3/2014                                
Consolidated,unaudited                                     
                                                           
EUR'000                                                    
GROUP                                    Q1 2014   Q1 2013 
                                                           
NET SALES                                   9 661    11 390
Cost of goods sold                         -7 960    -9 669
Gross profit                                1 701     1 721
Marketing expenses                           -651      -599
Administrative expenses                      -976      -939
Other revenue                                   9        17
Other expenses                                -27       -12
Operating profit                               56       188
Finance income                                 17       462
Finance costs                                  -8        -8
Income from subsidiaries                      324        75
Profit from normal operations                 389       717
Corporate Income tax                          -18         0
Profit after taxes, incl                      371       717
Net profit for the year                       391       698
Non-controlling interest                      -20        19
Basic earnings per share  (EUR)              0,02      0,04
Diluted earnings per share  (EUR)            0,02      0,04

Karin Padjus
FO
+372 674 7403
News Source: NASDAQ OMX


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Language:    English        
Company:     Harju Elekter  
 
 
             Estonia        
ISIN:        EE3100004250   
 
 
End of News    DGAP News-Service  
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266630 06.05.2014