OREANDA-NEWS. May 10, 2011. The financial indicators of the Group in the reporting quarter demonstrated improvement trends. Sales revenue increased by 10% to 9.4 million euros. Operating profit in Q1 2011 was 160,000 euros increasing more than twice compared to the same period a year before, 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, 88.0% (87.8%). The sales revenue on production received from customers outside of the Group increased by 10.2% to 8,293 thousand euros. An upturn in economic activities has also led to growth in the sales volumes of trade. In the reporting quarter, the sales of electrical products and components increased by over 65% up to 455,000 euros and the sales of other non-segmented activities by 16% up to 455,000 euros compared to the reference period.

An increase in economic growth in the EU Member States at the end of 2010, and at the beginning of this year, has resulted in improvement of the economic situation in the domestic markets of the Group. Sales have increased the most to the Finnish market – by one third. At the same time, the sales of production companies of the Estonian segment to the Finnish market also increased by over 78%, of which the sales to clients outside the Group increased by more than one-fourth and the sales of Lithuanian companies to the Finnish market more than doubled. Sales to Finnish market was 4.2 million euros, which was 44% from the consolidated sales. Sale to the Estonian market was 3.4 million euros increasing by over one seventh, with the production and sales of electrical equipment increasing by over 26%. This is largely attributable to growth in orders for substations with a metal casing. While a little more than 60 substations were sold in Q1 2010, then nearly 100 substations have been sold this year. Developments in the Lithuanian market have been more modest. Of the markets, the domestic markets (Estonia, Lithuania and Finland) of the Group’s companies prevailed, where 87.3% (78.3%) of the Group’s products and services were sold. 64% (66%) of Group products were sold outside of Estonia.

At the same time, the intensive work towards finding new export markets is continuing. Sales outside the European Union have increased five times during the accounting period being 10.7% (Q1 2010: 2.4%) from the consolidated turnover. Sales volumes to the markets of Norway, Russia, Belarus, and Malaysia have increased.

In the first quarter, there was an average of 418 people working in the Group (Q1 2010:432), included 265 (280) employees in Estonia, 68 (71) employees in Lithuania, 84 (81) employees in Finland and 1 employee in Sweden. As at the balance day on 31 March, there were 437 people working in the Group, which are 3 employees less than on the beginning of the year and 15 employees less than a year before. The wage costs were increased by 8.5% in the accounting quarter and the average wage per employee was 1,472 (Q1 2010: 1,311) euros.

Operating profit in Q1 2011 was 160,000 euros (Q1 2010: 72,000 euros) and EBITDA was 499,000 (Q1 2010: 420,000) euros. Return of sales for the period was 1.7% , which was 0.9 percent point better compared to the same period figure last year and return of sales before depreciation 5.3%, which was 0.4 percent point better.

During the first quarter, 30,000 euros of dividend income was obtained from the related company; in the comparable period there was a loss in amount 45,000 euros. During the reporting period, there was no income earned from the other financial investments, however in Q1 2010 the Group sold 80,000 shares of PKC Group Oyj and the profit from sales of shares was 522,000 euros.

Overall, the consolidated net profit of the Q1 2011 was 164,000 (Q1 2010: 523,000) euros, of which the share of the owners of the parent company was 182,000 (Q1 2010: 572,000) euros. EPS of the Q1 was 0.01 (Q1 2010: 0.03) euros.

In Q1 2011 the Group invested 301,000 euros in real estate, 81,000 euros in tangible fixed assets and 58,000 euros in intangible fixed assets, totally 440,000 euros. During the compared period the Group invested 200,000 euros in real estate, 2,011,000 euros in tangible fixed assets and 15,000 euros in intangible fixed assets.