Electronics Production | November 09, 2009
Profit down for Harju Elekter
Management assessed the economic results of Harju Elekter in Q3 and the first nine months to be good.
Due to a decline in demand, production and sales volumes, the Group has actively engaged in optimising and reducing both operating and fixed expenses, achieving equivalent savings and ensuring the profitability of the Group. The Q3 EBITDA was 9.1% (7.7%), and the first 9 months figure remained at the same level as the year before. The consolidated sales revenue of the Group in the third quarter was 120.6 million kroons (7.7 million euros), which was 46.9% less than the result of the comparable quarter. The consolidated sales revenue of the 9m 2009 was 474.3 million kroons (30.3 million euros), which was 28.9% less than the result of the comparable period. The core business of the Group is the production and sales of electrical distribution systems and control panels as well as other supportive side-activities, which was traditionally the largest share of sales revenues - approx. 90.1%. Real estate and income from other commercial activities together formed 10% of the consolidated sales revenue. Of the Group's products and services, 35% (37%) were sold on the Estonian, 45% (44%) on the Finnish and 10% (12%) on the Lithuanian markets; to the other European markets (Latvia, Sweden, Denmark and Portugal) a total of 4% (6%) were sold. The drop in demand on domestic markets has forced a search for new markets. Outside the European Union - in Russia, Belarus and Norway - a total of 6% (1%) of products were sold. Sales by the Group outside the European Union increased by 20 million kroons (1.3 million euros), compensating for the drop in the volumes of sales into other EU countries.