OREANDA-NEWS. May 12, 2008. The sales revenue of the Group in the first quarter of 2008 was 203,9 million kroons (13,0 million euros), growing 34,5% compared to the same period during the previous year, operating profit 25,6% up to 11,3 million kroons (0,7 million euros) and net profit 12,0% up to 9,7 million kroons (0,6 million euros), reported the press-centre of Harju Elekter.

The fastest growth paces were in the Finnish and Estonian segments (54,2% and 25,9%, respectively). The rapid increase that started last financial year in orders in the enterprises in Finland and Estonia which produce electronic equipment has also continued at the beginning of 2008.

The biggest contribution to the increase in sales revenue has been made by the Finnish segment, the sales volume of which to non-Group customers has increased by 30,8 million kroons (2,0 million euros) to 87,5 million kroons (5,6 million euros), constituting 42,9 % (37,4 %) of consolidated sales revenue. The vast majority of the sales revenue (80%) was derived from the sale of products directed to the industrial sector (manufacturers of metal and production equipment). Ship building has become a significant sector.

The sales volume of the of Estonian segment to non-Group customers increased by 20,1 million kroons (1,2 million euros) over the first three months, constituting 48,0 % or 97,8 million kroons (6,2 million euros) of the Group's sales revenue. Additionally, the Estonian segment sold goods and services valued 13,5 million kroons (0,9 million euros) to other segments, which exceeded the sales of the period being compared by 10,1 million kroons (0,7 million euros) and which also had a direct impact on the increase in the sales revenue of the other segments.

The main source of growth for the Estonian segment was the increase in the volumes of the sales of prefabricated outdoor substations and distribution substations to the energy sector. During the first three months, the sales to the Estonian market and the sales to the Finnish market exceeded that of the period being compared by 16 and 27 products respectively, constituting the growth in the sales revenue of 19,2 million kroons (1,2 million euros).

In the conditions of the increasing competition, the Lithuanian segment managed to increase their sales volumes by 8,2% from external markets. The sales on external markets increased by 1,6 million kroons (0,1 million euros). Supplies to Finland and Byelorussia were added and supplies to Latvia have increased. Supplies to Norway also continued. Denmark and Poland are also on the “horizon”.

Of the markets, the domestic markets of the Group's companies prevailed, where 95,4% (98,2%) of the Group's products and services were sold. The percentage of other EU and other markets is starting to gradually increase. This year the sales of goods and services to these countries have exceeded that of a year ago by 6,5 million kroons (0,4 million euros). The Group has sold its products to the markets of Latvia, Sweden and Poland, as well as Byelorussia, Russia and Norway.

In the first quarter, the average number of employees in the Group was 471 (Q1 2007: 416), the salary costs were 32,4 million kroons (2,1 million euros) and in the comparable period 25,7 million kroons (1,6 million euros). The average salary in the Group have increased by 2,300 kroons (150 euros) compared to the same period during the previous year. The costs on labour force have increased by 24,7% up to 40,4 million kroons (2,6 million euros) in the first quarter of 2008, compared to the same period of 2007. As of 31 March 2008 there were 507 (439) people working in the Group.

To sum up, the consolidated post-tax profit was 9,7 million kroons or 0,6 million euros (Q1 2007: 8,7 million kroons or 0,6 million euros), of which the share of the owners of the parent company comprised 9,7 million kroons (0,6 million euros). Net profit per share in the first quarter was 0,58 kroons or 0,04 euros (Q1 2007: 0,48 kroons or 0,03 euros).

The Group invested a total of 3,8 million kroons (0,2 million euros) in tangible and intangible fixed assets and real estate in Q1 2008, 5,9 million kroons (0.4 million euros) in the period of comparison.