Harju Elekter
Financial results, 1-9/2014

DGAP-News: Harju Elekter

05.11.2014 / 10:17

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Estonia, 2014-11-05 10:17 CET (GLOBE NEWSWIRE) -- 

In Q3, the Group's revenue and earnings increased comparing to the previous
quarter as well as to the comparable period. 

In July 2014, Group's subsidiary Satmatic Oy purchased all shares of Finland's
largest pre-fabricated substation producer Finnkumu Oy, whose Q3 financial
statements comprises Group's Q3 and 1-9/2014 interim report since 1 July 2014.
In July 2014, Group sold its 34% holding in AS Draka Keila Cables to the core
investor Prysmian Group. Affiliated company's profit is consolidated by the
equity method till 30.6.2014.  Both of these events have an impact on both the
Group's accounting quarter as well as 9-months consolidated financial results. 

                          change  July-September  change  January-Septem   Year 
                                                               ber              
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(thousand euros)               %    2014    2013       %    2014    2013    2013
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Revenue                     35.8  15,687  11,551     1.2  36,440  36,000  48,288
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Gross profit                43.4   3,242   2,262     8.4   6,858   6,327   8,458
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EBITDA                      67.8   1,907   1,136    16.7   3,084   2,643   3,269
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EBIT                       100.1   1,527     763    27.1   1,945   1,531   1,743
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Profit for the period       33.0   3,200   2,407    95.3   9,525   4,876   5,173
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Incl.attributed to          27.5   3,102   2,432    95.7   9,463   4,835   5,162
 Owners of the Company                                                          
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Revenue increased in the reporting quarter compared to the previous quarter by
35.8% and reached 15.7 million euros. Because 50% of the growth came from
Finnkumu Oy, the comparable increase in Q3 sales volumes was 10.9%.
Consolidated sales revenue for the nine month period reached 36.4 million
euros, having increased 1.2% in relation to the comparable period. 70% of the
Group's products and services sold outside Estonia. 

90% of sales revenue was earned from the Production segment, and Real Estate
together with Unallocated Activities contributed 10% of the consolidated sales
volume. The Manufacturing segment is engaged in the manufacturing and sales of
electricity distribution and control equipment and in related activities. The
revenue from the sales of electrical equipment comprised 92.7% of the sales
volume for Manufacturing and 83.7% of the consolidated revenue. 

In the reporting quarter, the number of employees in the Group was an average
of 14 more than in the comparable period. The Group companies have recruited
new employees, and in Q3 additional temporary staff is traditionally used.
Compared to the beginning of the year, the number of employees in the Group has
increased by 22, with 18 added to the Group as a result of the acquisition of
Finnkumu Oy in Q3. Labour costs increased in 9-months period by 4.7% to 8.8
million euros. The rate of labour costs to revenue formed 24.2% (9M 2013:
23.4%). In the Q3, employee wages and salaries totalled 2,361 (Q3 2013: 1,985)
thousand euros and during the 9-months period 6,692 (9M 2013: 6,398) thousand
euros. The average wages per employee per month amounted to 1,647 (9M 2013:
1,542) euros. 

Cost of sales increased 34% in the reporting quarter and decreased 0.3% in
9-months period, at a rate slightly below the sales revenue by 1.8 percentage
points in reporting quarter and by 1.5 percentage point in 9-months. Overall,
the growth rate of operating expenses lagged behind that of sales revenue,
having increased in the reporting quarter by 30.6%, to 14.1 million euros, but
having decreased in the 9-month period by 0.1%, to 34.4 million euros. 

Accordingly, the Group's operating profit in the reporting quarter was 1.5 (Q3
2013: 0.8) million euros and EBITDA 1.9 (Q3 2013: 1.1) million euros.  Return
of sales for the accounting quarter was 9.7% (Q3 2013: 6.6%) and return of
sales before depreciation 12.2% being 2.4 per cent point better compering to
the same period a year before. During 9-months period, EBITDA as well EBIT
increased both by 0.4 million euros to 3.1 million and to 1.9 million euros,
respectively. 

PKC Group Oyj paid dividends to the shareholders 0.70 euros per share. Dividend
income from the shares was 907 (2013: 948) thousand euros. In the second
quarter, also 200,000 shares of PKC Group Oyj were sold and the financial
income from selling the shares was 4.6 (9M 2013:1.7) million euros. The profit
from financial investment totalled 5.5 million euros in the 9-months period; in
the comparable period it was 2.6 million euros. During the 9 months, finance
income amounted to 5.6 (9M 2013: 2.6) million euros. 

In the reporting quarter, the Group sold their 34% holding in AS Draka Keila
Cables and the financial income from selling the shares was 1.8 million euros.
During the reporting period, the Group consolidated from the associated company
a profit of 0.8 (9M 2013: 1.2) million euros. 

The consolidated net profit of the reporting quarter was 3.2 (Q3 2013: 2.4)
million euros, of which the share of the owners of the Company was 3.1 (Q3
2013: 2.4) million euros. EPS in the Q3 was 0.18 (Q3 2013: 0.14) euros. 

Overall, the consolidated net profit of the 9M 2014 was 9.5 million euros,
being 2 times higher compared to the previous period.  The share of the owners
of the Company was 9.5 million euros. EPS in 9 months was 0.54 (9M 2013: 0.28)
euros. 

Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400

For more information: Interim report 1-9/2014



AS HARJU ELEKTER                                                             
BALANCE SHEET, 30.09.2014                                                    
Consolidated, unaudited                                                      
                                                                             
Group                                                                        
EUR'000                                                                      
ASSETS                                   30.09.14  31.12.13                  
Cash and cash equivalents                   9 135     4 102                  
Available-for-sale financial assets            30         0                  
Trade receivables and other receivables     8 184     5 699                  
Prepayments                                   225       256                  
Prepaid income tax                              9        41                  
Inventories                                 9 713     5 801                  
TOTAL CURRENT ASSETS                       27 296    15 899                  
Deferred income tax asset                       6         7                  
Investments in associates                       0     3 598                  
Other long-term financial investments      17 548    31 339                  
Investment property                        11 464    11 663                  
Property, plant and equipment               8 043     8 129                  
Intangible assets                           5 364       436                  
Total non-current assets                   42 425    55 172                  
TOTAL ASSETS                               69 721    71 071                  
LIABILITIES AND OWNERS' EQUITY                                               
Interest-bearing loans and borrowings         412       654                  
Trade payables and other payables           7 035     4 437                  
Tax liabilities                             1 335       969                  
Income tax liabilities                        221        15                  
Short-term provision                           23        36                  
TOTAL CURRENT LIABILITIES                   9 026     6 111                  
NON-CURRENT LIABILITIES                     2 724     1 141                  
TOTAL LIABILITIES                          11 750     7 252                  
Share capital                              12 180    12 180                  
Share premium                                 240       240                  
Restricted reserves                        17 793    31 424                  
Retained earnings                          26 412    18 635                  
TOTAL OWNERS' EQUITY                       56 625    62 479                  
Non-controlling interests                   1 346     1 340                  
TOTAL EQUITY                               57 971    63 819                  
TOT.LIABILIT.AND OWNERS' EQUITY            69 721    71 071                  
                                                                             
                                                                             
INCOME STATEMENT,  1-9/2014                                                  
Consolidated,unaudited                                                       
                                                                             
EUR'000                                                                      
GROUP                                    Q3 2014   Q3 2013   M9 2014  M9 2013
                                                                             
NET SALES                                  15 687    11 551   36 440   36 000
Cost of goods sold                        -12 445    -9 289  -29 582  -29 673
Gross profit                                3 242     2 262    6 858    6 327
Marketing expenses                           -680      -586   -1 976   -1 890
Administrative expenses                      -966      -913   -2 865   -2 897
Other revenue                                 -20        13       16       32
Other expenses                                -49       -13      -88      -41
Operating profit                            1 527       763    1 945    1 531
Finance income                                 79     1 228    5 627    2 645
Finance costs                                  -9        -7      -25      -30
Income from subsidiaries                    1 787       467    2 602    1 150
Profit from normal operations               3 384     2 451   10 149    5 296
Corporate Income tax                         -184       -44     -624     -420
Profit after taxes, incl                    3 200     2 407    9 525    4 876
Net profit for the year                     3 102     2 432    9 463    4 835
Non-controlling interest                       98       -25       62       41
Basic earnings per share  (EUR)              0,18      0,14     0,54     0,28
Diluted earnings per share  (EUR)            0,18      0,14     0,54     0,28
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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295151 05.11.2014