.
million EEK million EUR
Key figures 1-3/2007 1-3/2006 1-3/2007 1-3/2006
Turnover 151.6 123.9 9.7 7.9
Operating profit 9.0 8.0 0.6 0.5
Net profit for the current period 8.7 13.9 0.6 0.9
incl equity holders of the Parent 8.1 13.8 0.5 0.9
At the end of the period
Total current assets 181.8 176.6 11.6 11.3
Total non-current assets 510.0 559.6 32.6 35.8
Total assets 691.8 736.1 44.2 47.0
Total liabilities 139.4 130.7 8.9 8.4
Total equity 552.4 605.4 35.3 38.7
incl equity holders of the Parent533.5 589.2 34.1 37.7
Performance indicators
Growth in net sales 22.4% 10.6%
Operating profit growth 13.3% 16.8%
Return on sales 6.0% 6.4%
Net profit margin 5.3% 11.2%
Equity ratio 77.1% 80.0%
Average number of employees 416 421
EPS 0.48 EEK 0.82 EEK 0.03 EUR 0.05 EUR
The sales revenue of the Group in the first quarter of 2007 was MEEK 151.6
(9.7 million euros) and MEEK 123.9 (7.9 million euros) in the comparable
period, growing 22.4% compared to the same period during the previous year.
The fastest growth paces were in the Finnish and Lithuanian segments (36.5%
and 31.2%, respectively). The growth of sales volume in the Finnish segment
was supported in the first quarter by the acquisition of the Keravale
production and sales units in April of last year, as well as the strong sales
work and the growth of the corresponding economic sector in Finland. The fast
growth of the Lithuanian economy has also continued to favourably influence
the work of the Lithuanian segment. The largest contribution to the growth of
sales revenue, in the amount of MEEK 27.7 (1.8 million euros), was made by the
Finnish and Estonian sectors, MEEK 15.2 (1.0 million euros) and MEEK 8.5 (0.5
million euros), respectively.
Traditionally, the largest share - 80.6% (80.4%) - of the sales revenue
accounted for production, which is the main area of activity of the Group.
Warm weather in the last quarter of 2006 and in the first quarter of 2007
ensured that construction activities remained at an above normal level, which
positively influenced the economic results of the production segment of the
Group as well as trade. The sale of industrial products and services grew,
compared to the same period of the previous year, by MEEK 22.7 (1.4 million
euros) up to MEEK 122.3 (7.8 million euros). The fastest growth, 35.6%, was
achieved in trade. With the support of the continuing construction boom, the
trade group sold electrical goods valued at of over MEEK 17 (1 million euros),
accounting for over 11% (10%) of the consolidated sales revenue. The fastest
growth occurred in the sale of electrical switchboards, components and cables.
To a certain extent, the growth in sales has been caused by the growth of
prices, which was in the range of 5-10% depending on the group of goods. The
sales and purchasing prices of land cables increased the most (25-35%), but
their share in the trade turnover was around 2%.
The largest markets were in Finland (44%) and Estonia (43%), yielding a total
of 87.7% (87.9%) of the Group's sales volume during the quarter. The growth
pace continued to be the fastest on the Lithuanian market, where the growth,
compared to the Estonian and Finnish market, was almost three times faster,
reaching 61.0%. The share of the Lithuanian market increased by 2.5%,
accounting for 10.5% of the consolidated sales revenue in the first quarter.
In the first quarter, the average number of employees in the Group was 416
(421 in the first quarter of 2006), the sales costs were MEEK 25.7 (1.6
million euros) and in the comparable period MEEK 20.2 (1.3 million euros).The
costs on labour force have increased by 28.1% up to MEEK 32.4 (2.1 million
euros) in the first quarter of 2007, compared to the same period of 2006. On
the one hand, the growth in costs may be explained by the growth of salaries
and, on the other hand, by the changes in the structure of the Group in the
previous financial year. In connection with the purchase of a production unit
in Finland in the second quarter of 2006, the number of employees in Finland
has increased from 56 to 74. In the last quarter of 2006, a subsidiary with 32
employees was sold in Lithuania. It is understood that the level of salaries
in Finland is significantly higher than in Estonia and Lithuania. As of 31
March 2007, the number of employees working in Estonian companies has
increased by 12 compared to a year ago. In summary, 439 (437) people worked in
the Group as of 31 March 2007.
The operating profit in the first quarter increased by 13.3% to MEEK 9.0 (577
000 euros). The operating profitability was 6.0% (6.4%).
The pre-tax profit of the Group was MEEK 9.1 (600,000 euros), which is MEEK
5.1 (300,000 euros) less than in the comparable period. In the first quarter
of 2006, the Group sold the shares of PKC Group Oyj. The profit from the sale
of shares was MEEK 5.2 (300 000 euros), in the reporting period the profit
from the sale of shares was EEK 200 000 (15,000 euros). In the first quarter,
profit was consolidated from related companies by EEK 900,000 (58,000 euros)
less than a year ago. The growth of labour costs also influenced the financial
results of related companies. The results of Draka Keila Cables AS were
significantly influenced by the fluctuation of market prices of non-ferrous
metals on the world market.
To sum up, the consolidated post-tax profit was MEEK 8.7 or 600 000 euros
(MEEK 13.9 or 600,000 euros in the first quarter of 2006), of which the share
of the owners of the parent company comprised MEEK 8.1 (500,000 euros). Net
profit per share in the first quarter was EEK 0.48 or 0.03 euros (EEK 0.82 or
0.05 euros).
The amount of the consolidated balance sheet as of 31 March 2007 was MEEK
691.8 (44.2 million euros), decreasing by MEEK 65.9 (4.2 million euros) in the
first quarter. The main reason for the decrease in assets was a change in the
market price of a share of PKC Group Oyj in the first quarter. The price of
the share on the Helsinki Stock Exchange decreased during the quarter by 2.84
euros (EEK 44.44). The difference resulting from reassessment of shares
decreased the value of financial investment and owners equity in the amount of
MEEK 79.9 (5.1 million euros). Being influenced by reassessment of financial
assets, the share of equity (owners of parent company) in the assets decreased
by 2.9% to a share of 77.1% (80.0%) in the first quarter.
During reporting period the Group invested into tangible assets totaly MEEK
5.9 or 377,000 euros (Q1 2006: MEEK 6.7 or 432,000 euros).
As a result of increased production volumes, the Group needed an additional
credit. A short-term bank loan grew during the first quarter by MEEK 2.9 or
187,000 euros (Q1 2006: MEEK -1.4 or -87,000 euros). Long-term bank loans were
repaid within three months in the amount of MEEK 2.5 or 160,000 euros (QI
2006: MEEK 2.2 or 140,000 euros), and leasing payments in the amount of EEK
254,000 or 17,000 euros (Q1 2006: EEK 359,000 or 23,000 euros).
Andres Allikmäe
Chairman of the Board
+372 674 7400
For more information: Internal report 1-3/2007 of Harju Elekter, Mrs Karin
Padjus, Member of the Board (phone +372 674 7400).
AS HARJU ELEKTER
BALANCE SHEET, 31.03.2007
Consolidated, unaudited
Group
in thousands EEK EUR
ASSETS 31.03.07 31.12.06 31.03.07 31.12.06
Cash and cash equivalents 7 776 6 712 497 429
Trade receivables and other receivable 83 990 82 765 5 369 5 290
Prepayments 774 845 49 54
Inclusive income tax 0 2 0 0
Inventories 89 238 79 030 5 703 5 050
TOTAL CURRENT ASSETS 181 778 169 352 11 618 10 823
Investments in associates 25 539 25 187 1 632 1 610
Other long-term financial investments 264 678 344 884 16 916 22 042
Investment property 123 798 127 268 7 912 8 134
Property, plant and equipment 92 447 87 446 5 908 5 589
Intangible assets 3 576 3 595 229 230
Total non-current assets 510 038 588 380 32 597 37 605
TOTAL ASSETS 691 816 757 732 44 215 48 428
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrowings 21 035 20 772 1 344 1 328
Trade payables and other payables 78 691 73 496 5 029 4 697
Tax liabilities 12 213 12 268 781 784
Inclusive income tax 2 401 2 401 154 154
Short-term provision 73 100 5 6
TOTAL CURRENT LIABILITIES 112 012 106 636 7 159 6 815
NON-CURRENT LIABILITIES 27 361 27 037 1 749 1 728
TOTAL LIABILITIES 139 373 133 673 8 908 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 251 366 331 552 16 065 21 190
Retained earnings 108 165 100 078 6 913 6 396
TOTAL OWNERS' EQUITY 533 531 605 630 34 099 38 707
Minority interests 18 912 18 429 1 208 1 178
TOT.LIABILIT.AND OWNERS' EQUITY 691 816 757 732 44 215 48 428
INCOME STATEMENT, 1-3/2007
Consolidated,unaudited
'000 EEK EUR
GROUP Q1 2007 Q1 2006 Q1 2007 Q1 2006
NET SALES 151 611 123 895 9 690 7 918
Cost of goods sold -125 909-101 274 -8 047 -6 472
Gross profit 25 702 22 621 1 643 1 446
Marketing expenses -6 667 -5 619 -426 -359
Administrative expenses -9 819 -8 936 -628 -571
Other revenue 94 38 6 2
Other expenses -281 -134 -18 -9
Operating profit 9 029 7 970 577 509
Net financial incomes/expenses -313 4 910 -20 314
Income from subsidiaries 352 1 256 22 80
Profit from normal operations 9 068 14 136 579 903
Corporate Income tax -365 -231 -23 -15
Profit after taxes, incl 8 703 13 905 556 888
Minority interest 616 82 39 5
Net profit for the year 8 087 13 823 517 883
Basic and diluted
earnings per share 0,48 0,82 0,03 0,05
Karin Padjus
Financial manager
+372 674 7403