OREANDA-NEWS. May 08, 2009. The consolidated sales profit of the Group in the first quarter was 181.8 million kroons, which was 10.8% less than the result of the comparable quarter, reported the press-centre of Harju Elekter.

The core business of the Group is the production and sales of electrical distribution systems and control panels as well as other supportive side-activities, which was traditionally the largest share of sales revenues - 89.9% (86.9%). Of the markets, the domestic markets (Estonia, Lithuania and Finland) of the Group's companies prevailed, where 93.6% (95.4%) of the Group's products and services were sold.

The Group has sold its products also to the markets of Latvia, Sweden and Poland, as well as Byelorussia, Russia and Norway. Regardless of the present economic situation, the financial results of the Group were normal in every way.

The gross profit of the Group amounted to 24.8 million kroons (1.6 million euros), which was 16.7% less than in the previous period. The total profit margin was 13.6% (Q1 2008: 14.6%). The operating profit dropped by 43.7% to 6.4 million kroons (408 thousand euros) in the first quarter. The operating margin was 3.5% (5.6%).

Because of the recession, the sales volume of the affiliated undertaking decreased considerably, resulting in loss. The Group consolidated from the affiliated undertaking a loss of 7.5 million kroons (0.5 million euros), while the loss had been 0.2 million kroons (12 000 euros) in the comparable period. In the first quarter, the Group sold 100 000 shares of PKC Group Oyj.

The realised gains from the sale of shares were 5.0 million kroons (318 000 euros). No shares were sold in 2008. As a result of the decreasing interest-bearing obligations, the interest expenses dropped by 155 thousand kroons (10 000 euros), being 581 thousand kroons (37 000 euros). The consolidated net profit of the Q1 2009 was 2.7 million kroons or 172 thousand euros (in Q1 2008: 9.7 million kroons or 623 thousand euros), of which the share of the owners of the parent company was 2.6 million kroons (169 thousand euros).

EPS of the reporting period was 0.16 kroons or 0.01 euros (in Q1 2008: 0.58 kroons or 0.04 euros).

The amount of the consolidated balance sheet as of 31 March 2009 was 556.3 million kroons or 35.6 million euros (31.3.2008:694.8 million kroons or 44.4 million euros). The operating liabilities decreased by 14.5 million kroons (0.9 million euros) and the inventories by 13.7 million kroons (0.9 million euros), but cash at bank increased by 4.8 million kroons (0.3 million euros) up to 28.2 million kroons (1.8 million euros).

All in all, the balance sheet total decreased by 24.2 million kroons (1.5 million euros) current assets to 225.2 million kroons (14.4 million euros) and by 21.4 million kroons (1.4 million euros) regarding cost of fixed assets to 331.1 million kroons (21.2 million euros).

The liability of the Group decreased by 38.0 million kroons (2.4 million euros) to 145.2 million kroons (9.3 million euros) during the first three months, and this was mainly on account of interest-bearing liabilities. During the first three months, the Group companies repaid a total of 8.7 million kroons (0.6 million euros) of the long-term loan and the short-term loan in the amount of 24.1 million kroons (1.5 million euros) along with the capital lease in the amount of 0.5 million kroons, i.e. 34 000 euros(Q12008: 0.3 million kroons, i.e. 21 000 euros).

All in all, the book value of the interest-bearing liabilities decreased by 33.3 million kroons (2.1 million euros).

The equity capital of the Group constituted 74% (in 2008:75%) of the assets, including the owners' share of 70% in the parent company (in 2008: 72%).

The cash flow from operations amounted to 36.2 million kroons, i.e. 2.3 million euros in the first quarter and 7.1 million kroons, i.e. 0.5 million euros in the comparable period. The cash flow from investments was a positive 2.0 million kroons, i.e. 127 000 euros in the accounting period, the cash flow spent during the comparable period was 3.7 million kroons (234 thousand euros).

The cash flow from financial investments was 33.3 million kroons (2.1 million euros) and 3.7 million kroons (0.2 million euros) in the comparable period.

Cash and cash equivalents increased by 4.8 million kroons (310 thousand euros) in the first quarter and decreased by 0.3 million kroons (19 000 thousand euros) during the comparable period.

In the first quarter, there was an average of 461 people working in the Group (Q12008: 477), included 301 (316) employees in Estonia, 77 (74) employees in Lithuania and 83 (87) employees in Finland.

As at the balance day on 31 March, there were 492 people working in the group, which are 23 employees less than in the beginning of the year and 15 employees less than a year ago.

The average monthly salary within the Group in the first quarter was 24.3 thousand kroons (1.5 thousand euros), which is 1.7 thousand kroons (0.1 thousand euros) more than in comparable period. The main reason behind the rise of salaries was the company in Finland. All labour cost in Q1 2009 were 40.4 million kroons (2.6 million euros), staying stable in the same level as the comparable period.