Harju Elekter increase revenue by 33% in 2Q

At the same time, the operating profit in Q2 2011 was 540,000 euros increasing three times compared to the same period a year before and in H1 700,000 euros, increasing 2.8 times compared to the H1 2010. The sales revenue of the production segment increased by more than 37% in the reporting quarter and over 23% within 6 months, traditionally amounting to the largest share – 88.7% (87.1%) of the sales revenue. The sale of miscellaneous electrical installations increased by 45% to 9.2 million euros in the Q2, accounting for 93% of the sales revenue of the reporting quarter, and increased by more than 24% to 16.4 million euros within 6 months, making up 90% of the sales revenue of the production segment. An increase in economic growth in the EU countries at the end of 2010, and at the beginning of this year, has resulted in improvement of the economic situation in the domestic markets of the Group. Sales have increased the most to the Finnish market –in Q2 more than 58% up to 5.1 million euros and during the 6 months by 46% up to 9.3 million euros. At the same time, also the sales of production companies of the Estonian segment to the Finnish market increased by over 75%. In the reporting quarter, the sales of products and services to the Estonian market amounted to 4.3 million euros, increasing by 44% compared to the reference period and by 7.6 million euros within 6 months, representing growth of over 30% relative to the reference period. Developments in the Lithuanian market have been more modest. Totally, the domestic markets (Estonia, Lithuania and Finland) of the Group’s companies prevailed, where 91.8% (83.8%) of the Group’s products and services were sold. 63% (65%) of Group products were sold outside of Estonia. In the second quarter, expenses of the operating activities increased by 29.3%, which was by 4 percentage points lower than the growth rate of sales revenue and expenses increased by 18.8% within six months, which was by 2.7 percentage points lower than the growth rate of sales revenue. In the second quarter, there was an average of 421 (Q2 2010:423) and in H1 2011 an average of 419 (H1 2010:427) people working in the Group. As at the balance day on 30 June, there were 457 people working in the Group, which were 17 employees more than on the beginning of the year and 11 employees more than a year before. Within 6 months, a total of 3,768 (3,363) thousand euros was paid in wages and payments to the employees and the average wage per employee was 1,472 (1,311) euros. Operating profit of Q2 2011 was 540,000 (Q2 2010: 178,000) euros and EBITDA was 898,000 (Q2 2010: 526,000) euros. Return of sales for the period was 4.9%, which was 2.8 per cent point better compared to the same period last year and return of sales before depreciation was 8.1%, improving by 1.8 per cent point comparing to the Q2 2010. Operating profit of the H1 2011 was 700,000 euros, which was 2.8 times more thank comparing period and EBITDA was 1,397,000 euros, growth 47.6%. Return of sales before depreciation in H1 was 6.8% (H1 2010: 5.6%) and return of sales for the period 3.4%, which was 1.9 per cent point better than a year before. In the accounting quarter the Group consolidated from the related company a profit of 79,000 (Q2 2010: 102,000) euros and within the 6 months 109,000 (H1 2010: 57,000) euros. In the Q2, net financial income increased by 229,000 euros to 781,000 euros, but declined by 294,000 euros to 775,000 euros within 6 months. In the reporting period, dividend income was received more by 235,000 euros, totalling 795,000 euros. At the same time, 80,000 shares in PKC Group Oyj were sold in the Q1 2010 and financial income from selling the shares was 522,000 euros. Overall, the consolidated net profit of the Q2 2011 was 1,164,000 (Q2 2010: 640,000) euros, of which the share of the owners of the parent company was 1,077,000 (Q2 2010: 588,000) euros. In Q2 EPS were 0.06 (Q2 2010: 0.03) euros. In the H1 2011, earnings per share amounted 0.07 euros. The consolidated net profit increased during the first half of the year by 14.2% and was 1,329,000 euros, of which the share of the owners of the parent company was 1,258 (H1 2010: 1,160) thousand euros. In H1 2011 the Group invested 1,057,000 euros in real estate, 294,000 euros in tangible fixed assets and 67,000 euros in intangible fixed assets, totally 1,418,000 euros. During the compared period the Group invested 245,000 in real estate, 2,051,000 in tangible fixed assets and 31,000 euros in intangible fixed assets, totally 2,327,000 euros, of which 1.9 million was acquired subject to financial lease conditions.