PKC increase sales

The PKC Group's net sales in the January-June 2006 period increased by 6.1% on the previous year to EUR 109.3 million (103.0 million in Jan.-June 2005). Operating profit was EUR 15.0 million (14.0 million) and profit before taxes was EUR 14.6 million (14.6 million). Mika Kari, President and CEO said: “The most significant achievement of the first half of the year has been the long-sought expansion of business to North America. The acquisition of the Electro Canada companies strengthens our position as a global wiring harness supplier. By expanding to North America we are taking a major step in our growth strategy, and the acquisition improves our position significantly in worldwide competitive bids and in the seeking of new customer relationships. The start-up of the factory in China has proceeded as planned, with small-scale manufacturing operations being launched in June. In order to meet the additional production capacity required in Europe, we are building a new factory in Pskov, Russia, which is set to begin production at the end of the year. The factory will serve the central European market, and in the future, we aim to enter the developing Russian market as well. Our operative business have developed favourably, but the result of the second quarter is burdened by expenses resulting from a sharp rise in the price of copper. Expenses relating to the start-up of the new factories in Pskov and Suzhou also had a moderate effect on the result.”