Elcoteq lowers forecast

The company expects its third-quarter net sales to remain slightly lower than in the same period last year and its operating income to be weaker compared with the same period last year but nevertheless to strengthen compared with this year's second quarter. Fourth-quarter net sales and operating income are forecast to be at the third quarter's level; hence growth in full-year net sales is forecast to remain at around 5%. Operating income will not reach last year's level. The company has previously forecast that its third-quarter net sales will grow and operating income will be at the same level as in the third quarter of 2005. Full-year net sales were previously forecast to increase by approximately 10% and operating income to improve slightly compared with the previous year. The main reason for the change in forecast is weaker than expected development of manufacturing volumes in Europe and unsatisfactory profit growth in the Americas. "The company's long-term prospects have not changed and we expect both net sales and operating income to return to growth," says Mr Jouni Hartikainen, President and CEO.