Harju Elekter
Financial results, 1-9/2013

Harju Elekter 

06.11.2013 07:32
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Estonia, 2013-11-06 07:32 CET (GLOBE NEWSWIRE) -- 
The Group's 9 months sales revenue was 36.0 million euros and in the accounting
quarter 11.6 million euros. From the beginning of the year, the operating
profit has grown steadily quarter to quarter reached 0.8 million in the Q3 and
being almost on the same level as in comparable periods. In the accounting
quarter, EBIT improved by 1 percentage point and was 6.6% (Q3 2012: 5.6%). In
the 9 months-period, operating profit amounted 1.5 million euros and EBIT was
4.2% (9M 2012: 4.5%). Overall, the consolidated net profit of the 9M 2013
increased to 4.9 million euros and to 2.4 million euros in Q3 2013. EPS in 9
months was 0.28 (9M 2012: 0.20) euros and in third quarter 0.14 (Q3 2012: 0.07)
euros. 

                          Change          July -  Change     January -     Year 
                                       September             September          
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(thousand euros)               %    2013    2012       %    2013    2012    2012
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Revenue                    -20.3  11,551  14,486   -10.5  36,000  40,236  52,801
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Gross profit                -7.1   2,262   2,435    -5.5   6,327   6,694   8,653
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EBITDA                      -4.6   1,136   1,191    -9.4   2,643   2,918   3,439
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EBIT                        -6.6     763     817   -16.0   1,531   1,822   1,970
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Profit for the period       81.5   2,407   1,326    42.1   4,876   3,431   3,603
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incl attributed to          93.6   2,432   1,256    45.2   4,835   3,329   3,517
 Owners of the Company                                                          
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The decrease in consolidated sales revenue was caused by a decrease in sales
and commissions in the production segment, which accounted for about 90% of
sales revenue this year. Around 83% of the sales revenue came from the
production and sale of electrical equipment. In the accounting quarter, both
the production and sales volume of electrical devices decreased by 2.8 million
euros, reaching 9.5 million euros, and in the period of 9 months, by 4.0
million euros reaching 29.8 million euros. The greatest setbacks in the
production volumes of electrical devices occurred in the segments of Finland
(-3.0 million euros) and Lithuania (-0.9 million euros). 

61% of the Group's products and services were sold in foreign markets, outside
Estonia (9M 2012: 65%) and 93% revenues received from the Group's companies
home markets  - Estonia, Finland, Sweden, Lithuania. 

In the reporting quarter, operating costs decreased 21%; with 23% lower costs
related to the sale of products and services and 7% lower costs related to
administration and distribution. During the first nine months of the year,
costs related to sold products decreased by 3.9 million euros to 29.7 million
euros, resulting in a gross profit margin of 17.6% with an improvement of 1
percentage point. 

In Q3 2013, the average 454 people worked in the Group − on the average by 25
persons less than in the reference period. During the first 9 months, the
average number of employees decreasing by 24 persons. In Q3 2013, the average
457 people worked in the Group − on the average by 10 persons less than in the
reference period. During the first 9 months, the average number of employees
decreased by 10 persons up to 461 employees. Because of that, in the reporting
quarter, labour costs decreased by 8.0% and by 5% during 9 months-period. In
the third quarter, employee wages and salaries totalled 1,985 (Q3 2012: 2,206)
thousand euros and during the first 9 months 6,398 (9M 2012: 6,826) thousand
euros. The average wages per employee per month amounted 1,538 (9M 2012: 1,683)
euros. 

During 9 months, the amount of the consolidated balance sheet increased by 13.1
million euros and compared to the period under review by 13.7 million euros,
and as of 30 September 2013, was 72.7 million euros. Most of the growth derived
from value adjustment of long-term financial investments. The market price of
PKC Group Oyj shares increased in accounting quarter by 5.75 (Q3 2012: 1.90)
euros and the share price in Helsinki Stock Exchange in last trading day of
September was 23.95 (a year before: 14.03) euros. During nine months, the
market price of PKC Group Oyj shares increased by 8.52 (9M 2012: 2.60) euros.
The cost of investment in assets and reserves in equity capital increased by
the profit of 11.4 (9M 2012: 3.6) million euros, received from stock
revaluation. In third quarter, AS Harju Elekter bought 11 ha of production land
on the outskirts of Tallinn, in Allika Industrial Park, with the objective
being future industrial real estate development. During the 9-months period,
the Group's investments to real estate, tangible fixed assets and intangible
fixed assets totalling 1.98 (9M 2012: 0.53) million euros. 

At the balance date 30 September 2013, fixed assets amounted 75.4% (30
September 2012: 70.1%) and owners' equity 86.9% (30 September 2012: 82.0%) of
the cost of assets. 

The Group's 9-month current ratio and the quick ratio improved both by 0.3,
compared to the reference period, being 2.1 and 1.3. 

As at September 30 2013 AS Harju Elekter had 1,481 shareholders. The largest
shareholder of AS Harju Elekter is AS Harju KEK, a company based on local
capital which held 32.0 % of AS Harju Elekter's share capital. 

Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400

For more information: Internal report 1-9/2013



AS HARJU ELEKTER                                                             
BALANCE SHEET, 30.09.2013                                                    
Consolidated, unaudited                                                      
                                                                             
Group                                                                        
EUR'000                                                                      
ASSETS                                   30.09.13  31.12.12                  
Cash and cash equivalents                   3 320     3 352                  
Trade receivables and other receivables     6 867     6 493                  
Prepayments                                   507       232                  
Prepaid income tax                             46         0                  
Inventories                                 7 186     6 395                  
TOTAL CURRENT ASSETS                       17 926    16 472                  
Deferred income tax asset                       4         5                  
Investments in associates                   3 445     2 295                  
Other long-term financial investments      31 028    21 386                  
Investment property                        10 135    10 454                  
Property, plant and equipment               9 789     8 546                  
Intangible assets                             397       451                  
Total non-current assets                   54 798    43 137                  
TOTAL ASSETS                               72 724    59 609                  
LIABILITIES AND OWNERS' EQUITY                                               
Interest-bearing loans and borrowings       1 155     1 075                  
Trade payables and other payables           5 926     5 902                  
Tax liabilities                             1 077     1 049                  
Income tax liabilities                          0        75                  
Short-term provision                           28        23                  
TOTAL CURRENT LIABILITIES                   8 186     8 124                  
NON-CURRENT LIABILITIES                     1 349     1 349                  
TOTAL LIABILITIES                           9 535     9 473                  
Share capital                              12 180    12 180                  
Share premium                                 240       240                  
Restricted reserves                        31 111    21 354                  
Retained earnings                          18 289    15 008                  
TOTAL OWNERS' EQUITY                       61 820    48 782                  
Non-controlling interests                   1 369     1 354                  
TOTAL EQUITY                               63 189    50 136                  
TOT.LIABILIT.AND OWNERS' EQUITY            72 724    59 609                  
                                                                             
                                                                             
INCOME STATEMENT,  1-9/2013                                                  
Consolidated,unaudited                                                       
                                                                             
EUR'000                                                                      
GROUP                                    Q3 2013   Q3 2012   M9 2013  M9 2012
                                                                             
NET SALES                                  11 551    14 486   36 000   40 236
Cost of goods sold                         -9 289   -12 051  -29 673  -33 542
Gross profit                                2 262     2 435    6 327    6 694
Marketing expenses                           -586      -759   -1 890   -2 113
Administrative expenses                      -913      -855   -2 897   -2 773
Other revenue                                  13         8       32       48
Other expenses                                -13       -12      -41      -34
Operating profit                              763       817    1 531    1 822
Net financial incomes/expenses              1 221         9    2 615    1 003
Income from subsidiaries                      467       561    1 150    1 014
Profit from normal operations               2 451     1 387    5 296    3 839
Corporate Income tax                          -44       -61     -420     -408
Profit after taxes                          2 407     1 326    4 876    3 431
Profit attributable to:                                                      
Owners of the Company                       2 432     1 256    4 835    3 329
Non-controlling interest                      -25        70       41      102
Basic earnings per share (EUR)               0,14      0,07     0,28      0,2
Diluted earnings per share (EUR)             0,14      0,07     0,28      0,2

Karin Padjus
FO
+372 674 7403
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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