OREANDA-NEWS. November 07, 2008. The Group's consolidated sales revenue for the third quarter was MEEK 226.9 (MEUR 14.5), which exceeded the figure of the reference quarter by MEEK 31.6 (MEUR 2.0), reported the press-centre of Harju Elekter.

The sales volume of nine months reached MEEK 667.0 (MEUR 42.6), exceeding the figure of the reference period by MEEK 141.8 (MEUR 9.0). Despite the prevailing economic recession, the growth pace of sales revenue was 16% and 27%, respectively, in the third quarter and the nine months as a whole.

The Group's profitability in the reporting period was affected by pressure from intensifying competition, price increase of raw materials, fuel and energy, and growth of labour costs. Deterioration of the payment habits of clients also had an impact, therefore the cost from the discounting of claims was larger than usual during the reporting period. The business revenue for 3Q2008 was MEEK 12.9 or MEUR 0.8 (3Q2007: MEEK 20.2 or MEUR 1.3) and the nine- month business revenue was MEEK 38.4 or MEUR 2.5 (9 months of 2007: MEEK 42.1 or MEUR 2.7).

The Group's net profit was most influenced by the financial income earned on financial investments. In 2007, an extraordinary profit of MEEK 32.8 (MEUR 2.1) was made from the sale of financial investments. This year no financial assets have been sold. In connection with the payment of dividends, the Estonian companies paid a total of MEEK 8.5 (EUR 541 000) in income tax, which is by MEEK 2.1 (EUR 131 000) more than in 2007.

All in all, the income tax expenditure of the Group increased within nine months by MEEK 3.3 (EUR 211 000) up to MEEK 12.0 (EUR 765 000).

The Group's net profit for the third quarter was MEEK 11.1 or MEUR 0.7 (3Q2007: MEEK 20.1 or MEUR 1.3) and the net profit for nine months was MEEK 39.5 or MEUR 2.5 (9 months of 2007: MEEK 81.5 or MEUR 5.2). The share of the owners of the parent company in the net profit comprised MEEK 10.3 (EUR 656 000) in the third quarter and MEEK 19.2 (MEUR 1.2) in the reference period.

The net profit per share was EEK 0.61 (EUR 0.04) and in the reference period EEK 1.14 (EUR 0.07). Within nine months, net profit per share of EEK 2.23 (EUR 0.14) was earned and in the reference period EEK 4.74 (EUR 0.30), the share of the owners of the parent company in the net profit comprised MEEK 37.4 (MEUR 2.4) and in the reference period the corresponding figure was MEEK 79.6 (MEUR 5.1).

As of 30 September 2008 there were 521 employees in the Group, which is 52 employees more than a year ago. In the third quarter, the average number of employees in the Group was 523 (3Q2007: 462) and in 9M 501 (9 months of 2007: 437). Students of vocational schools are temporarily hired during summer months, as a result of which the average number of employees in the third quarter is a little larger and the average salary a little lower compared to the other quarters.

In the reporting period the average salary in the Group have increased by EEK 750 (EUR 47.90) up to EEK 22 000 (EUR 1 400) compared to the same period during the previous year. The costs on labour force have increased by MEEK 14.0 (MEUR 0.9) in the nine months of 2008 up to MEEK 127.0 (MEUR 8.1).

In 3Q2008, a production and office building will be completed in Lithuania; its construction was commenced in the 2Q2007. During 2008 the volume of construction output amounted to 5.7 million kroons (364 thousand euros). In total, the construction has cost MEEK 12.7 (EUR 813 000). In the nine months, the Group has invested a total of MEEK 13.7 (EUR 873 000) in buildings, MEEK 5.7 (EUR 366 000) in production equipment and means of transport.

To finance new construction in Lithuania, the Group took out an additional long-term loan in the amount of MEEK 3.0 (EUR 192 000). AS of 30 September long-term loans have been used in the amount of MEEK 7.4 (EUR 473 000). The loan contract has been concluded for five years. Long-term loans were repaid within nine months in the amount of MEEK 8.4 (EUR 534 000) and in the reference period in the amount of MEEK 7.5 (EUR 481 000).

On a financial lease, a total of MEEK 0.8 (EUR 53 000) of machinery and equipment were acquired, and a total of MEEK 1.1 (EUR 70 000) of principal repayments on the financial lease were made in nine months, and on the comparable period MEEK 1.0 (EUR 64 000) and MEEK 0.9 (EUR 54 000), respectively.