The economic results of the Group of Harju Elekter in the first half-year were
as expected. While 2006 was marked by exceptional large projects in Lithuania,
this year Estonian subsidiary AS Harju Elekter Elektrotehnika has won several
large orders-contracts. With the support of good economic condition, a solid
growth is continuing in Finland also in this year. To sum up, we have managed
to provide sufficient resources in order to ensure a normal growth pace and a
sustainable orders portfolio for the second half-year of 2007.
million EEK million EUR
Key figures 1-6/2007 1-6/2006 1-6/2007 1-6/2006
Turnover 329,9 294,9 21,1 18,8
Operating profit 21,9 19,8 1,4 1,3
Net profit for the current period 61,3 32,9 3,9 2,1
incl equity holders of the Parent 60,4 31,2 3,9 2,0
At the end of the period
Total current assets 234,3 183,1 15,0 11,7
Total non-current assets 510,1 597,5 32,6 38,2
Total assets 744,4 780,6 47,6 49,9
Total liabilities 172,2 153,9 11,0 9,8
Total equity 572,2 626,7 36,6 40,1
incl equity holders of the Parent 554,4 609,5 35,4 39,0
Performance indicators
Growth of net sales 11,9% 28,6%
Operating profit growth 10,6% 24,7%
Net profit growth 93,8% 80,6%
Return of sales 6,6% 6,7%
Net profit margin 18,3% 10,6%
Equity ratio 74,5% 78,1%
Average number of employees 425 430
EPS 3,60 EEK 1,86 EEK 0,23 EUR 0,12 EUR
In the H1 2007 the sales revenue of the Group increased to 329.9 million
kroons (21.1 million euros). In the second quarter the turnover was 178.3
million kroons or 11.4 million euros (Q2 2006: 171.0 million kroons or 10.9
million euros).
The fastest rates of growth in the Q2 occurred in the Estonian segment.
Compared to the Q2 2006, the sale of Estonian companies increased by 28.5% to
100.3 million kroons (6.4 million euros). Of the growth in the Q2
turnover of the Estonian segment in the amount of 22.3 million kroons (1.4
million euros), 14.5 million kroons (0.9 million euros) was achieved on
foreign markets. Several large orders were executed, incl. initial supplies
within the framework of Greek METKA project. Sales to the domestic market
also increased by 7.8 million kroons (0.5 million euros). The sales volumes of
the Finnish segment also increased, reaching 61.0 million kroons (3.9 million
euros), which is 4.9 million kroons (0.3 million euros) more than in the
reference period, and within the first six months products were sold in the
total amount of 117.7 million kroons (7.5 million euros), which is 20.1
million kroons (1.3 million euros) more than in the previous year. The growth
in the volume of sales was supported by the favorable conditions of Finnish
economy, the growth of the corresponding economic sector and the increase of
orders from exporters.
Traditionally the largest part, over 80%, of the sales revenue was received
from production. A significant part, nearly 10%, of the Group's sales revenue
was received from the trade group that again demonstrated the fastest growth
rate, based on the support from the continuing construction boom. In the Q2
the trade group sold electrical goods by 17.5% and in the first half-year by
25.8% more than in the respective reference periods of the previous year.
In the Q2 2007, the average number of the Group's employees was 433 (Q2 2006:
439), salary expenses increased 33.9% to 29.5 million kroons (1.9 million
euros), and in the first half-year 30.6% to 55.2 million kroons (3.5 million
euros). The growth in labour expenses may be explained, on the one hand,
by the growth in salaries and on the other hand, by changes in the Group's
structure in 2006. The number of employees increased in Finland and Estonia,
and decreased in Lithuania, since Birzu Montuotojas, a subsidiary of Rifas
UAB, was sold.
The Group's operating profit within first six months increased 10.6% to 21.9
million kroons (1.4 million euros) compared to the same period of the previous
year and the operating profitability was 6.6%, being at the level of the
previous year. The operating profit for the Q2 increased 8.2% to 12.9 million
kroons (0.8 million euros) and operating profitability was 7.2% (6.9%).
The Group's pre-tax profit for the reporting quarter was 60.0 million kroons
(3.9 million euros), which is by 34.9 million kroons (2.3 million euros)
larger than in the reference period. For investing to the core business, the
Group sold in the Q2 the shares in PKC Group Oyj. The realised profit from the
sale of shares was 32.6 million kroons (2.1 million euros), but no shares were
sold in the reference period. The dividend income in the Q2 was 12.7 million
kroons (0.81 million euros), remaining at the level of the previous year.
Profit consolidated from related companies in the Q2 was by 1.3 million kroons
(84 thousand euros) larger than a year ago, totalling 2.3 million kroons (148
thousand euros). The Group's total pre-tax profit for the first six months was
69.2 million kroons (4.4 million euros), being 39.3 million kroons (2.5
million euros) in the reference period.
To sum up, the consolidated after-tax profit for the Q2 was 52.5 million
kroons or 3.3 million euros (Q2 2006: 19.0 million kroons or 1.2 million
euros), of which the proportion of the owners of the parent company accounted
for 52.2 million kroons or 3.3 million euros (Q2 2006: 17.4 million kroons or
1.2 million euros). The net profit per share in the second quarter was 3.11
kroons or 0.20 euros (Q2 2006: 1.03 kroons or 0.07 euros). The net profit for
the first half-year was 61.3 million kroons or 3.9 million euros (H1 2006:
32.9 million kroons or 2.1 million euros), of which the proportion of the
owners of the parent company accounted for 60.4 million kroons or 3.9 million
euros (H1 2006: 31.2 million kroons or 2.0 million euros) and the net profit
per share was 3.60 kroons or 0.23 euros (H1 2006: 1.86 kroons or 0.12 euros).
During reporting period the Group invested into tangible assets totally MEEK
12.3 or 784 thousand euros (H1 2006: MEEK 13.0 or 833 thousand euros).
Long-term loans were repaid within six months in the amount of 5.0 million
kroons (321 thousand euros) and in the reference period in the amount of 4.4
million kroons (280 thousand euros) and leasing payments were paid in the
amount of 543 thousand kroons (34 thousand euros) and in the reference period
in the amount of 722 thousand kroons (46 thousand euros).
Within the first half-year, the Group paid dividends in the total amount of
31.7 million kroons (2.0 million euros), in the reference period 27.4 million
kroons (1.8 million euros), of the prevailing part in the amount of 31.5
million kroons (2.0 million euros) was paid in the second quarter.
Andres Allikmäe
Chairman of the Board
+372 674 7400
For more information: Internal report 1-6/2007 of Harju Elekter and Mrs Karin
Padjus, Member of the Board (phone +372 674 7403).
AS HARJU ELEKTER
BALANCE SHEET, 30.06.2007
Consolidated, unaudited
Group
in thousands EEK EUR
ASSETS 30.06.0731.12.0630.06.07 31.12.06
Cash and cash equivalents 27 645 6 712 1 767 429
Trade receivables and other receivable 98 606 82 765 6 302 5 290
Prepayments 861 845 55 54
Inclusive income tax 2 2 0 0
Inventories 107 140 79 030 6 847 5 050
TOTAL CURRENT ASSETS 234 252 169 352 14 971 10 823
Investments in associates 28 001 25 187 1 790 1 610
Other long-term financial investments 260 476 344 884 16 647 22 042
Investment property 122 684 127 268 7 841 8 134
Property, plant and equipment 95 446 87 446 6 101 5 589
Intangible assets 3 538 3 595 226 230
Total non-current assets 510 145 588 380 32 605 37 605
TOTAL ASSETS 744 397 757 732 47 576 48 428
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrowings 14 159 20 772 905 1 328
Trade payables and other payables 116 138 73 496 7 423 4 697
Tax liabilities 14 214 12 268 908 784
Inclusive income tax 3 125 2 401 200 154
Short-term provision 294 100 19 6
TOTAL CURRENT LIABILITIES 144 805 106 636 9 255 6 815
NON-CURRENT LIABILITIES 26 891 26 568 1 719 1 698
Other non-current liabilities 469 469 30 30
Total non-current liabilities 27 360 27 037 1 749 1 728
TOTAL LIABILITIES 172 165 133 673 11 004 8 543
Share capital 168 000 168 000 10 737 10 737
Paid-in capital over/under par 6 000 6 000 384 384
Restricted reserves 252 500 331 552 16 137 21 190
Retained earnings 127 864 100 078 8 172 6 396
TOTAL OWNERS' EQUITY 554 364 605 630 35 430 38 707
Minority interests 17 868 18 429 1 142 1 178
TOTAL EQUITY 572 232 624 059 36 572 39 885
TOT.LIABILIT.AND OWNERS' EQUITY 744 397 757 732 47 576 48 428
INCOME STATEMENT, 1-6/2006
Consolidated,unaudited
EEK'000
GROUP Q2 2007 Q2 2006 1-6/2007 1-6/2006
NET SALES 178 287 170 959 329 898 294 854
Cost of goods sold -144 931-142 208 -270 840 -243 482
Gross profit 33 356 28 751 59 058 51 372
Marketing expenses -8 263 -6 728 -14 930 -12 347
Administrative expenses -12 039 -10 621 -21 858 -19 557
Other revenue 250 551 345 588
Other expenses -402 -97 -684 -231
Operating profit 12 902 11 856 21 931 19 825
Net financial incomes/expenses 44 760 12 257 44 447 17 168
Income from subsidiaries 2 327 1 004 2 814 2 260
Profit from normal operations 59 989 25 117 69 192 39 253
Corporate Income tax -7 497 -6 153 -7 861 -6 384
Profit after taxes, incl 52 492 18 964 61 331 32 869
Minority interest 52 204 17 363 60 426 31 186
Net profit for the period 288 1 601 905 1 683
Basic and diluted
earnings per share 3,11 1,03 3,6 1,86
EUR'000
GROUP Q2 2007 Q2 2006 1-6/2007 1-6/2006
NET SALES 11 395 10 926 21 084 18 845
Cost of goods sold -9 263 -9 088 -17 309 -15 561
Gross profit 2 132 1 838 3 775 3 284
Marketing expenses -528 -430 -954 -789
Administrative expenses -769 -679 -1 397 -1 250
Other revenue 16 35 22 38
Other expenses -26 -6 -44 -16
Operating profit 825 758 1 402 1 267
Net financial incomes/expenses 2 861 783 2 841 1 097
Income from subsidiaries 148 64 179 145
Profit from normal operations 3 834 1 605 4 422 2 509
Corporate Income tax -479 -393 -502 -408
Profit after taxes, incl 3 355 1 212 3 920 2 101
Minority interest 3 336 1 110 3 862 1 993
Net profit for the period 19 102 58 108
Basic and diluted
earnings per share 0,20 0,07 0,23 0,12
Karin Padjus
Financial manager
+372 6 747 403
