Elcoteq sales up 5%

Net sales between January and June rose 12% compared with the same period last year and totaled 2,010.7 million euros (1,792.4 million euros in January - June 2005). Operating income was 20.5 million euros (25.4) and income before taxes 9.9 million euros (18.6). Elcoteq has two business areas: Terminal Products and Communications Network Equipment. In the second quarter Terminal Products contributed 81% (81%) and Communications Network Equipment 19% (19%) to the Group's net sales. Companies within the Ericsson and Nokia groups accounted for altogether 69% (68%) of Elcoteq's consolidated second-quarter net sales. These figures do not include business activities with Sony Ericsson. Elcoteq has three geographical areas (GA): Europe, Asia-Pacific and Americas. Elcoteq's second-quarter net sales were derived from these areas as follows: Europe 58% (56%), Asia-Pacific 27% (23%) and Americas 15% (21%). Net sales of GA Europe grew by approximately 9% on the same period one year earlier to 599.7 million euros (550.9). Net sales of GA Asia-Pacific rose by roughly 20% on the comparison period to 272.8 million euros (226.6). Net sales of GA Americas decreased by about 23% on the same period last year to 157.1 million euros (204.5). Elcoteq's high-volume manufacturing plants in Manaus, Brazil, and Juarez, Mexico, were both relocated to new premises in May. The move will enhance the use of manufacturing and office space and enable Elcoteq to provide state-of-the-art services to its current and future customers in the Americas. The new Manaus plant has floor space of approximately 5,000 square meters and when fully utilized is expected to accommodate some 800 employees. The Juarez plant has floor space totaling 13,700 square meters and employs roughly 1,600 people. Elcoteq has increased its capacity in Pecs, Hungary, by leasing a further 7,000 square meters of storage and manufacturing space. The additional capacity will increase the number of company employees in Hungary by roughly 10%.