Harju Elekter
Financial results, 1-9/2012

Harju Elekter 

31.10.2012 10:31
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Estonia, 2012-10-31 10:31 CET (GLOBE NEWSWIRE) -- The Group's financial
performance during the reporting period improved compared to the reference
period. During the nine months, revenue increased by 19.8%, gross profit by
18.1%, operating profit by 20.9% and net profit by 47.6%, incl. in the third
quarter by 11.1%, 4.3%, 1.3% and 33.4%, respectively. 

Key figures (EUR'000)               Q3 2012  Q3 2011  9m 2012  9m 2011    2011
Sales revenue                        14,486   13,035   40,236   33,574  46,674
EBITDA                                1,191    1,145    2,918    2,543   3,378
Operating profit                        817      806    1,822    1,506   2,025
Net profit for the current period     1,326      996    3,431    2,324   2,948
incl. equity holders of the parent    1,256      945    3,329    2,202   2,773
EPS (EUR)                              0.07     0.06     0.20     0.13    0.17

In the third quarter, the Group's consolidated revenue increased by 1.45
million euros up to 14.5 million euros and the revenue for nine months
increased by more than 6 million euros, to nearly 40.2 million euros. The
increase in revenue derived mainly from the principal activity, i.e.
production, where the sales increased by over 1.42 million euros or 12.0% in
the third quarter and by over 6.6 million euros or 21.9% within nine months.
Production also contributed the largest share of revenue - 91% (9m 2011:
89.4%). From industrial products, the sale of electrical equipment grew 14.3%
to 12.4 million euros and one-fourth i.e. 6.7 million euros to 33.9 million
euros in 9 months, contributing 84% (9m 2011: 81%) of the Group's sales
revenues. 

Of the revenue of the Group, 65% was received from the foreign markets outside
Estonia. 90% of the Group's products and services were sold in the Group's
companies home markets: Estonia, Finland, Sweden, Lithuania (9m 2011: 92.6%).
Domestic sale increased by 10.7% to 14.1 million euros in 9 months, amounting
to 35% of the Group's sales revenues; sales to the Finnish market increased by
28.9% to 19.3 million euros, which was 47.9% of the sales revenue of the Group.
Sales to the Lithuanian market decreased by one-third in Q3 and 40% in 9
months. However, the Lithuanian company's 9-month sales volumes in foreign
markets have increased to 60% (9m 2011: 36%) of the total sales revenue of the
company. Group's export to other European Union countries has almost doubled.
Germany is also a developing and continuously growing market for the Group,
also have increased supplies to France and Portugal. 6.1% (9m 2011: 5.0%) of
the Group's products and services were sold outside EU, increasing by 35.7% in
the reporting quarter and during the nine months by 44.5%. Supplies to Russia
and Belarus have also increased; Ukraine and Switzerland were introduced as a
new market. 

With a strong growth of revenue, the expenditure of business activities have
been increasing a little faster - in the reporting quarter by 11.7% and during
nine months by 20.0%. In Q3, the Group expensed doubtful receivables in the
total amount of 72,000 euros, increasing distribution costs in Q3 by 11.4% and
in 9 months by 4.3% and decreasing profit margins by 0.5 percentage points in
the quarter under review and 0.2 percentage points in 9 months. 

In Q3 2012, the average 467 people worked in the Group − on the average by 32
persons more than in the reference period. During the first 9 months, the
average number of employees increasing by 27 persons up to 451 employees. In
the third quarter, employee wages and salaries totalled 2.2 (Q3 2011: 2.0)
million euros and during the first 9 months 6.8 (9m 2011: 5.8) million euros.
The average wages per employee per month amounted 1,683 (9m 2011: 1,519) euros.
As at the balance day on 30 September, there were 479 people working in the
Group, which were 24 employees more than a year before and 22 employees more
than in the beginning of the year. 

Operating profit of Q3 2012 was 817 (Q3 2011: 806) thousand euros and EBITDA
1.2 (Q3 2011: 1.1) million euros. Return of sales for the accounting quarter
was 5.6% (Q3 2011: 6.2%) and return of sales before depreciation 8.2% (Q3 2011:
8.8%). During 9 months, EBITDA increased by 14.7% to 2.9 million euros and
operating profit by 20.9% to 1.8 million euros. Return of sales before
depreciation for the 9 months 2012 was 7.3% (9m 2011: 7.6%) and return of sales
was 4.5%, being on the same level as in the reference period. 

Net financial expenses have increased by 243,000 euros to 1.0 million euros
within nine months. In Q3 2012, the Group consolidated from the associated
company a profit of 561,000 (Q3 2011:291,000) euros and during the nine months
1.0 (9m 2012: 0.4) million euros. 

Overall, the consolidated net profit of the Q3 2012 was 1.3 (Q3 2011: 1.0)
million euros, of which the share of the owners of the parent company was 1.2
(Q3 2011: 0.9) million euros. EPS in the Q3 was 0.07 (Q3 2011: 0.06) euros. The
consolidated net profit of nine months was 3.4 million euros increasing by
47.6% compared to the reference period. EPS was 0.20 (9m 2011: 0.13) euros. 

Andres Allikmäe
Managing director/ CEO

For more information: Internal report 1-9/2012; Mrs Karin Padjus, FO, phone
+372 674 7403 



AS HARJU ELEKTER                                                               
BALANCE SHEET, 30.09.2012                                                      
Consolidated, unaudited                                                        
                                                                               
Group                                                                          
in thousands                             EUR                                   
ASSETS                                   30.09.12  31.12.11                    
Cash and cash equivalents                   1 814       815                    
Trade receivables and other receivables     8 089     7 848                    
Prepayments                                   188       104                    
Prepaid income tax                              0        20                    
Inventories                                 7 569     6 658                    
TOTAL CURRENT ASSETS                       17 660    15 445                    
Deferred income tax asset                      49        35                    
Investments in associates                   2 191     1 177                    
Other long-term financial investments      19 448    16 023                    
Investment property                        10 552    10 833                    
Property, plant and equipment               8 698     8 985                    
Intangible assets                             425       422                    
Total non-current assets                   41 363    37 475                    
TOTAL ASSETS                               59 023    52 920                    
LIABILITIES AND OWNERS' EQUITY                                                 
Interest-bearing loans and borrowings         147     2 245                    
Trade payables and other payables           7 521     6 268                    
Tax liabilities                             1 225       758                    
Income tax liabilities                         83        29                    
Short-term provision                           12        17                    
TOTAL CURRENT LIABILITIES                   8 988     9 317                    
NON-CURRENT LIABILITIES                     1 630     1 569                    
TOTAL LIABILITIES                          10 618    10 886                    
Share capital                              12 180    11 760                    
Paid-in capital over/under par                240         0                    
Restricted reserves                        19 422    15 881                    
Retained earnings                          14 790    12 672                    
TOTAL OWNERS' EQUITY                       46 632    40 313                    
Non-controlling                             1 773     1 721                    
TOTAL EQUITY                               48 405    42 034                    
TOT.LIABILIT.AND OWNERS' EQUITY            59 023    52 920                    
                                                                               
                                                                               
INCOME STATEMENT,  1-9/2012                                                    
Consolidated,unaudited                                                         
                                                                               
EUR'000                                                                        
GROUP                                    Q3 2012   Q3 2011   1-9/2012  1-9/2011
                                                                               
NET SALES                                  14 486    13 035    40 236    33 574
Cost of goods sold                        -12 051   -10 698   -33 542   -27 907
Gross profit                                2 435     2 337     6 694     5 667
Marketing expenses                           -759      -631    -2 113    -1 666
Administrative expenses                      -855      -900    -2 773    -2 461
Other revenue                                   8        16        48        21
Other expenses                                -12       -16       -34       -55
Operating profit                              817       806     1 822     1 506
Net financial incomes/expenses                  9       -15     1 003       760
Income from subsidiaries                      561       291     1 014       400
Profit from normal operations               1 387     1 082     3 839     2 666
Corporate Income tax                          -61       -86      -408      -342
Profit after taxes, incl                    1 326       996     3 431     2 324
Net profit for the period                   1 256       945     3 329     2 202
Non-controlling interest                       70        51       102       122
Basic earnings per share (EUR)               0,07      0,06       0,2      0,13
Diluted earnings per share (EUR)             0,07      0,06       0,2      0,13
                                                                               
Karin Padjus                                                                   
Financial manager
News Source: NASDAQ OMX



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Language:     English
Company:      Harju Elekter
              
               
              Estonia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         EE3100004250
WKN:          
 
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