Elcoteq releases its annual report for 2005

Elcoteq reports an increase in operating income by 34% to 76.5 million euros (57.3). Net sales increased in all geographical areas. Jouni Hartikainen, President and CE Oreports:"2005 was another year of real growth for Elcoteq. Our net sales rose to a new record level, and exceeded four billion euros, and earnings per share improved on the previous year by more than 30%. Most of this growth was organic and I am particularly pleased that growth took place in all geographical areas. The new manufacturing plants we opened in India and Russia in 2005 provide a solid platform for growth in the future. Furthermore, our status as a European company has already attracted a lot of attention and interest among both our customers and other stakeholders. The goals we set at the beginning of 2004 — balancing our customer base, broadening the service offering and improving the profitability of the Communications Network Equipment business — are just as relevant today. The emergence of original design manufacturing services has been an especially lively discussion topic in recent years. In Elcoteq we view these services as a natural extension of the traditional electronics manufacturing services (EMS). Customers expect and need a wider range of services from their partners. Our global service network, along with our globally consistent procedures, processes and manufacturing plants, puts Elcoteq in an outstanding position in its market. A strong global network gives us the capability to add new services and features. And when this is done systematically and with care, we have every reason to expect results. Elcoteq's success so far is no coincidence but the result of a systematic effort. Concentration on safeguarding and developing our core expertise gives us a clear competitive edge that will benefit us as the market evolves. It goes without saying that we will face new trends and changes in the future: new players and products will enter the market, old players will merge or even leave the market, which will inevitably create new opportunities. Especially in this sort of situation it is absolutely essential that we remain intent on carrying out our own strategy with greater determination and consistency than ever. We must create for ourselves a clear picture of what our customers need now and in the future, and develop our operations on that basis. That is how we have always done things in Elcoteq, and it is how we will continue". The market for electronics manufacturing services in communications technology grew by more than 10% in 2005, driven especially by strong demand for mobile phones in developing countries in Asia-Pacific and Latin America. Growth is expected to remain strong in the years ahead. Click here to download the full report in PDF-format (4M).