PRESS RELEASES 2000



14.11.2000
HARJU ELEKTER
ANNOUNCEMENT

COMMENTARY TO ARTICLE PUBLISHED IN ÄRIPÄEV ON 14.11.2000

Harju Elekter Group is the largest producer of electrical equipment and materials in the Baltic countries, employing almost 1,000 people. AS Harju Elekter is a concern, which core business is production and marketing of electrical (electrical equipment, incl. substation units, cable distribution cabinets, and wiring harnesses and connection cables) and telecommunications equipment. The parent company does not produce cables and metal doors, as mentioned in the article, but its affiliated companies: cable producer AS Keila Kaabel (42.2% holding) and fireproof and safety doors producer AS Saajos Balti (33.3% holding).

The activities of PKC Group and Harju Elekter cable harnesses factory are greatly impacted by the increased output of wiring harnesses for Scania trucks. Today the additional expenses from launch of new products and substantial increase in turnover are already covered in both companies.

Harju Elekter 9 months turnover was EEK 146.1 mln, providing more than 35% annual growth. The net profit stood at EEK 22.4 mln (+38%), whereas the EEK 8.3 mln profit earned in Q3 2000 proceeded mainly from increase of gross profit and excellent results of subsidiaries and affiliated companies.

Additional information: Andres Allikmäe (Tel +372 67 47 400) Internet: www.harjuelekter.ee and www.tse.ee.

Andres Allikmäe
Management Board chairman
+372 67 47 400

Lembit Libe
chief economist
+372 67 47 412

TOP


08.11.2000
HARJU ELEKTER
BALANCE SHEET

CONSOLIDATED BALANCE SHEET, AS AT 30.09.2000

Consolidated, unaudited
in EEK thousand

 

Group

Parent

 

30.09.00

30.09.99

30.09.00

30.09.99

ASSETS

Cash and bank

8,323

12,695

7,477

12,034

Marketable securities

620

485

620

485

Total customer receivables

21,804

11,482

13,335

10,212

Other current receivables

1,728

702

6,350

1,226

Accrued income

0

59

0

59

Prepaid expenses

2,067

2,197

1,502

2,107

Total current receivables

25,600

14,440

211,817

13,604

Inventories

18,877

14,847

14,282

12,551

Goods

3,447

3,781

3,348

3,563

Prepayments to suppliers

8

950

8

950

Total inventories

22,331

19,578

17,638

17,063

TOTAL CURRENT ASSETS

56,874

47,197

46,922

43,186

Stock and shares in subsidiaries

0

0

6,827

4,530

Other receivables from subsidiaries

0

0

252

434

Stock and shares in associated companies

17,009

17,787

17,009

17,787

Other shares

1,554

1,554

1,554

1,554

Other long-term receivables

593

465

593

465

Total financial investments

19,157

19,806

26,236

24,770

Land and buildings

64,579

41,375

64,457

41,375

Plant and equipment

37,826

26,719

23,439

21,244

Other inventory

3,214

1,985

2,568

1,676

Accumulated depreciation

-23,106

-17,905

-20,794

-16,516

Unrealized capital investments

6,638

11,656

6,638

11,673

Prepayments for fixed assets

4

564

4

564

Total tangible assets

89,155

64,396

76,313

60,015

Goodwill

232

329

0

0

Licences

449

0

449

0

Total intangible assets

681

329

449

0

TOTAL NON-CURRENT ASSETS

108,993

84,530

102,997

84,785

TOTAL ASSETS

165,867

131,727

149,919

127,970

LIABILITIES AND OWNERS' EQUITY

Debt obligations

6,956

2,061

3,202

1,904

Customer prepayments

876

992

876

938

Supplier payables

17,185

8,436

14,089

7,500

Other short-term borrowings

525

51

823

51

Tax liabilities

4,239

5,670

3,743

5,328

Accrued expenses

4,417

3,856

3,710

3,506

TOTAL CURRENT LIABILITIES

34,198

21,066

26,443

19,227

TOTAL NON-CURRENT LIABILITIES

26,823

30,683

18,630

28,765

TOTAL LIABILITIES

61,021

51,749

45,074

47,992

Share capital

54,000

18,000

54,000

18,000

Restricted reserves

3,610

3,610

3,610

3,610

Retained earnings

24,864

44,169

24,864

44,169

Net profit for the year

22,372

14,199

22,372

14,199

TOTAL OWNERS' EQUITY

104,846

79,978

104,846

79,978

TOTAL LIABILITIES AND OWNERS' EQUITY

165,867

131,727

149,919

127,970

Karin Padjus
Chief Accountant
+372 67 47 403

Lembit Libe
chief economist
+372 67 47 412

TOP


08.11.2000
HARJU ELEKTER
INCOME STATEMENT

CONSOLIDATED INCOME STATEMENT, 9M 2000

Consolidated, unaudited
in EEK thousand

 

Group

Parent

 

9m 00

9m 99

9m 00

9m 99

Net sales

146,129

108,211

118,845

94,420

Cost of goods sold

117,868

85,681

95,490

74,932

Gross profit

28,261

22,531

23,355

19,488

Operating expenses, incl.

14,522

13,065

12,144

11,510

marketing expenses

5,263

5,101

4,403

4,329

administrative expenses

9,259

7,965

7,741

7,181

Other revenue

173

754

117

750

Other expenses

443

525

421

484

Operating profit

13,468

9,694

10,907

8,243

Financial income, incl.

-financial income from subsidiaries

0

2,587

2,082

3,848

-financial income from associated companies

6,070

123

6,070

123

-financial income from otherholdings

4,176

4,473

4,204

4,519

-foreign exchange gain

3

5

1

2

-other interest and financial income

532

549

602

545

Total financial income

10,782

7,736

12,959

9,037

Financial expenses, incl.

-financial expenses related with subsidiaries

0

0

0

0

-financial expenses related with associated companies

170

0

170

0

-interest expenses

1,574

1,179

1,238

1,037

-other financial expenses

134

91

86

82

Total financial expenses

1,878

1,270

1,494

1,119

Profit from normal operations

22,372

16,161

22,372

16,161

Corporate income tax

0

1,962

0

1,962

Net profit for the year

22,372

14,199

22,372

14,199

Karin Padjus
Chief Accountant
+372 67 47 403

Lembit Libe
chief economist
+372 67 47 412

TOP


07.11.2000
HARJU ELEKTER
COMMENTARY TO FINANCIAL RESULTS

COMMENTARY TO FINANICAL RESULTS, 09/2000

Sales and revenue

AS Harju Elekter 9m 2000 consolidated net sales totaled EEK 146.1 mln, which is 35% more than in 9m 1999 (EEK 108.2 mln). The parent company's turnover was EEK 118.8 mln (9m 1999: EEK 94.4 mln), providing 26% annual growth.

AS Harju Elekter and its affiliated companies deal mainly in Euro-zone currencies, thus the substantially strengthened USD has not had a major impact on the company's business activities.

No changes occurred in the activity fields of the companies in Harju Elekter group.

Total exports volume was EEK 76.2 mln, which is 45% more than in 9m 1999 (EEK 52.4 mln). Exports accounted for 52% of total sales (48% in 9m 1999).

Among the new markets, Harju Elekter increased sales to Denmark from EEK 0.6 mln in 9m 1999 to EEK 14.2 mln, due to substantial increase in export of UPS-equipment cases by subsidiary AS Eltek to APC Denmark A/S under the respective co-operation agreement (effective as of February 2000).

Production of cable harnesses for Scania trucks is rapidly growing, ensuring the necessary level to achieve the targets set for year 2000. The company has mostly covered the additional costs related with substantial turnover growth and launch of new product in Harju Elekter cable harnesses factory and leading Nordic electrical equipment provider PKC Group.

Profit

In Q2 the turnover profit margin was lower due to launch of new investments, development of new products and employee recruitment costs. In Q3 the company overcame difficulties and profit margin grew. In Q3 the group's gross profit stood at EEK 7.1 mln, which is 81% more than during the same period last year. In 9 months the gross profit grew by an annual 39% (35% y-o-y growth in turnover).

In Q3 the company's consolidated profit from normal operations was EEK 8.3 mln (in 9m 1999: EEK 4 mln). The almost doubled profit figure was mainly due to excellent results posted by subsidiaries and affiliated companies in Q3. Subsidiary Eltek and affiliated companies earned more than 5 times higher than during the same period in 1999 (EEK 1.5 mln and EEK 1.7 mln, respectively).

Consolidated profit from normal operations stood at EEK 22.4 mln, providing 38% annual growth (9m 1999: EEK 16.2 mln).

Financial income account includes extraordinary income from sale of AS Glamox Harju Elekter shares this year (EEK 3.2 mln) and sale of AS Saajos Balti shares last year (EEK 2.6 mln).

AS Harju Elekter earnings per share were EEK 4.14 (9m 1999: EEK 2.63)

TOP


18.08.2000
HARJU ELEKTER
ANNOUNCEMENT

SUPERVISORY BOARD DECISIONS

On 18.08.2000 the Supervisory Board of AS Harju Elekter decided:

1. Aiming to motivate AS Harju Elekter employees, to issue share options to AS Harju Elekter employees and executives, and members of the Management Boards of its subsidiaries and associated companies as of 21.08.2000, according to the decision of 27.04.2000 annual general meeting of AS Harju Elekter shareholders

2. Harju Elekter will issue up to 200,000 (two hundred thousand) options, whereas each option entitles to one AS Harju Elekter share with EEK 10 (ten) par value.

3. Subscription period: 21.08.-29.09.2000.

4. Option exercising price is EEK 40.-, which is the average weighted price of Harju Elekter shares on the Tallinn Stock Exchange on 17.08.2000.

5. Option is European Option.

6. Expiration date is 30.09.2002.

7. shares to be issued entitle the shareholders for dividends as of 2002 financial year.

Endel Palla
Chairman of Supervisory Board

Lembit Libe
chief economist

TOP


03.08.00
HARJU ELEKTER
ANNOUNCEMENT

APPLICATION OF QUALITY MANAGEMENT SYSTEM

On 14.07.2000 Bureau Veritas Quality International certified Harju Elekter electrical equipment factory's quality management system to be in line with the international standards ISO 9001:1994

The quality management system is used for:

  • Design, production and marketing of electrical low voltage distribution boards and substations;

  • Design, production and marketing of sheet metal products;

Application of quality management system will expand the possibilities of exporting the products of electrical equipment factory, and increase the company's reliability for clients and suppliers.

Andres Allikmäe
Chairman of Management Board

Lembit Libe
Chief Economist

TOP


25.07.00
HARJU ELEKTER
ANNOUNCEMENT

CONSOLIDATED BALANCE SHEET, 30.06.2000

Consolidated/unaudited
in thousand EEK

 

Group

Parent

 

30.06.00

30.06.99

30.06.00

30.06.99

ASSETS

       

Cash, bank, securities

6,956

16,658

6,198

15,861

Marketable securities

549

489

549

489

Total customer receivables

19,184

8,649

14,024

7,488

Other current receivables

2,281

4,215

7,377

4,789

Accrued income

41

41

   

Prepaid expenses

4,323

544

1,935

544

Total current receivables

25,788

13,449

23,336

12,861

Inventories

18,972

14,929

13,004

13,072

Goods

3,652

3,462

3,529

3,201

Prepayments to suppliers

0

425

425

 

Total inventories

22,625

18,816

16,533

16,698

TOTAL CURRENT ASSETS

55,918

49,412

46,617

45,909

Stock and shares in subsidiaries

0

0

5,363

4,199

Other receivables from subsidiaries

0

0

252

465

Stock and shares in associated companies

15,646

17,028

15,646

17,028

Other shares

1,554

1,554

1,554

1,554

Other long-term receivables

517

465

517

434

Total financial investments

17,717

19,047

23,332

22,974

Plant and equipment

64,508

37,205

64,386

37,205

Other equipment and fixtures

37,588

25,909

23,352

20,521

Other inventory

2,975

1,834

2,437

1,552

Accumulated depreciation

-21,634

-16,711

-19,704

-15,455

Unrealized capital investments

1,344

6,893

1,344

6,901

Prepayments for fixed assets

59

564

59

564

Total tangible assets

84,840

55,694

71,874

51,289

Goodwill

256

0

0

0

Licenses

477

353

477

0

Total intangible assets

733

353

477

0

TOTAL NON-CURRENT ASSETS

103,291

75,094

95,683

74,263

TOTAL ASSETS

159,208

124,506

142,300

120,878

 

LIABILITIES AND OWNERS' EQUITY

Debt obligations

Debentures

2,416

321

0

0

Current period repayment of long-term loans

4,171

2,934

4,171

2,934

Short-term loans from financial institutions

5,073

1,091

2,901

1,091

TOTAL DEBT OBLIGATIONS

11,661

4,346

7,072

4,025

Customer prepayments

493

142

492

142

Supplier payables

13,203

5,201

9,997

4,568

Other short-term borrowings

793

21

989

21

Tax liabilities

5,226

4,549

4,803

4,190

Accrued expenses

4,649

3,236

3,878

2,840

TOTAL CURRENT LIABILITIES

36,023

17,495

27,231

15,785

Non-convertible debt

748

1,361

0

0

Long-term bank loan

25,913

26,270

18,544

26,270

Deferred income tax liability

0

3,051

0

2,495

TOTAL NON-CURRENT LIABILITIES

26,661

30,683

18,544

28,765

TOTAL LIABILITIES

62,684

48,178

45,776

44,551

Share capital

54,000

18,000

54,000

18,000

Restricted reserves

3,610

3,610

3,610

3,610

Retained earnings

24,864

44,169

24,864

44,169

Net profit for the year

14,050

10,549

14,050

10,548

TOTAL OWNERS' EQUITY

96,524

76,328

96,524

75,621

TOTAL LIABILITIES AND OWNERS' EQUITY

159,208

124,506

142,300

120,878

Karin Padjus
Chief Accountant

TOP


25.07.00
HARJU ELEKTER
ANNOUNCEMENT

CONSOLIDATED INCOME STATEMENT, 01.01.-30.06.00

Consolidated/unaudited
in thousand EEK

 

Group

Parent

 

H1 00

H1 99

H1 00

H1 99

NET SALES

90,437

70,693

75,562

61,206

Cost of goods sold

73,854

56,795

61,347

49,399

 

Gross profit

16,583

13,898

14,215

11,807

 

Operating expenses

9,980

8,440

8,471

7,430

Marketing expenses

3,532

2,924

2,943

2,431

Operating expenses, incl.

6,496

5,516

5,529

4,999

Other revenue

108

702

52

702

Other expenses

335

401

322

390

 

Operating profit

6,329

5,759

5,474

4,689

 

Financial income

Financial income from subsidiaries

0

2,587

618

3,517

Financial income from associated companies

4,570

0

4,570

0

Financial income from other holdings

4,183

4,506

4,183

4,506

Foreign exchange gain

3

2

0

1

Other interest and financial income

383

290

414

329

Total financial income

9,139

7,385

9,785

8,353

Financial expenses

Financial expenses related with subsidiaries

0

0

0

0

Financial expenses related with associated companies

322

224

322

224

Interest expense

979

735

807

638

Foreign exchange loss

51

18

15

13

Other financial expenses

64

31

64

32

Total financial expenses

1,417

1,008

1,209

907

 

Profit from normal operations

14,050

12,135

14,050

12,135

 

Income tax

0

1,587

0

1,587

 

Net profit for the year

14,050

10,548

14,050

10,548

Karin Padjus
Chief Accountant

Lembit Libe
Chief Economist

TOP


25.07.00
HARJU ELEKTER
ANNOUNCEMENT

COMMENTARY TO FINANCIAL RESULTS 06/2000

Sales and revenue

AS Harju Elekter H1 2000 consolidated net sales totaled EEK 90.4 mln, which is 28% more than in H1 1999 (EEK 70.7 mln). The parent company's turnover was EEK 75.5 mln (H1 1999: EEK 61.2 mln), providing 23% annual growth.

No changes occurred in the activity fields of the companies in Harju Elekter group.

Total exports volume was EEK 47.4 mln, which is 17% more than in H1 1999 (EEK 40.4 mln). Exports accounted for 52% of total sales. Among the new markets, Harju Elekter increased sales to Denmark 10 times (from EEK 0.6 mln to EEK 6 mln), due to substantial increase in export of UPS-equipment cases by subsidiary AS Eltek to APC Denmark A/S under the respective co-operation agreement (effective as of February 2000).

Profit

The company's profit from normal operations was EEK 14 mln, providing 16% y-o-y growth (in H1 1999: EEK 12.1 mln). Consolidated net profit figure grew by 33% since no corporate income tax was paid this year (H1 1999: EEK 1.6 mln).

Financial income account includes extraordinary income from sale of AS Glamox Harju Elekter shares this year (EEK 3.2 mln) and sale of AS Saajos Balti shares last year (EEK 2.6 mln).

In H1 the AS Harju Elekter earnings per share were EEK 2.60 (H1 1999: EEK 1.95)

Investments and use of capital

In H1 the group made EEK 20.1 mln of new investments to increase output capacity, incl. EEK 6.3 mln for reconstruction of buildings, EEK 3.5 mln for acquisition of estate in Keila (cable harnesses factory's production facilities and land) and acquisition of fully automated metal processing center for subsidiary AS Eltek (EEK 8.2 mln).

In Q2 the company paid EEK 5.4 mln in dividends for year 1999.

In H1 the group balance sheet size grew by EEK 21.7 mln and tangible fixed assets by EEK 17 mln. The group owners equity volume accounted for 54% of total balance sheet (61% at 30.06.1999). compared to the same period last year, the group's inventories account have grown by 20%, mainly on the account of EEK 3.5 mln increase in AS Eltek inventories, due to 1.6 times increase in output and sales (incl. 2.5 times higher exports).

Lembit Libe
Chief Economist

TOP


29.05.00
HARJU ELEKTER
ANNOUNCEMENT

SALE OF HOLDING IN GLAMOX HARJU ELEKTER

On 26.05.2000 AS Harju Elekter signed an agreement for sale of its 20% holding in AS Glamox Harju Elekter to Norwegian Glamox ASA. The company will continue to operate under business name Glamox HE, and is to be 100% owned by Norwegian Glamox group.

Glamox HE was founded on 14.12.1992 on the basis of light fittings department of Harju Elekter. During 8 years the company developed the largest light fittings and electrical heaters production factory in the Baltic countries. Harju Elekter has fulfilled its strategic goals. With regard to the wishes of Glamox group and Glamox HE's financial results during the recent years, the companies reached an agreement for sale of 20% holding in Glamox HE, which is currently in the ownership of Harju Elekter. The two companies will continue close cooperation and Harju Elekter will continue to market the products of Glamox HE in the future.

The turnover of Glamox HE in year 1999 amounted to EEK 72.7 mln, incl. exports turnover EEK 25.7 mln. The forecasts for year 2000 anticipate EEK 137 mln turnover. Glamox HE owns a factory in Keila with 6300 m2 of production premises, and a sales office in Tallinn. The company employs 95 people.

Glamox ASA is a Norwegian light fittings producer. The group is the fifth largest light fittings producer in Europe, and owns subsidiaries in most European countries and Asia, USA and Canada. The group employs 1250 people. The group's annual turnover is NOK 1.3 billion.

Harju Elekter group owns 100% subsidiary AS Eltek, and associated companies AS Keila Kaabel and AS Saajos Balti. Together with AS Harju Elekter electrical equipment and cable harnesses factories and trading group, the group is the largest electrical equipment producer group in the Baltic countries, employing 700 people.

Endel Palla
Chairman of Supervisory Board

TOP


27.04.00
HARJU ELEKTER
ANNOUNCEMENT

RESOLUTIONS OF ANNUAL GENERAL MEETING OF SHAREHOLDERS

The annual general meeting of AS Harju Elekter took place on 27.04.2000 in Keila. Altogether 124 shareholders and proxies attended the meeting, representing a total of 1197764 votes, or 66.54% of total votes.

Agenda of AGM:

1) Approval of 1999 annual report of AS Harju Elekter and profitallocation.
2) Stock dividend issue.
3) Issue of stock options to motivate employees.
4) Appointment of auditors for year 2000;

1. Approval of 1999 annual report of AS Harju Elekter and profitallocation.

AGM resolved:

1. to approve the 1999 annual report of Harju Elekter, as presented by the Management Board and approved by Supervisory Board, whereby the balance sheet size of AS Harju Elekter as of 31.12.1999 was EEK 137,496,664 and net profit for the year was EEK 22,094,954.

For: 1187940 votes, or 99.18% of votes represented at AGM.

2. to approve the profit allocation proposal, as presented by AS Harju Elekter Management Board and approved by Supervisory Board:

1) Beginning balance of retained earnings

EEK 44,169,012

2) Net profit in 1999

EEK 22,094,954

3) Net dividends paid to shareholders*

EEK 5,400,000

4) Balance of retained earnings

EEK 60,863,966

Dividends will be paid in money, in accordance with nominal value of shares held by a shareholder, in the amount of EEK 3 per share.Dividend payments will be made within one month as of the date of AGM, with transfer to shareholder's bank account.*list of shareholders will be closed for dividend payments on 12.05.2000, at 8:00 a.m.

For: 1187319 votes, or 99.13 % of votes represented at AGM.

2. Stock dividend issue.

AGM resolved:

Based on the balance sheet size as of 31.12.1999 provided in AS Harju Elekter approved annual report, to increase the company's share capital volume through stock dividend issue as follows:

1) increase share capital by EEK 36,000,000, from EEK 18,000,000 to EEK 54,000,000, through issue of 2 new nominal share per existing one share, to account for issue of total of 3,600,000 new shares at EEK 10 par value; each share is to entitle to its holder one vote. After increase of share capital, Harju Elekter share capital volume is EEK 54,000,000;
2) Harju Elekter shareholders, registered in the company's list of shareholders as of 12.05.2000, at 8:00 a.m., are entitled to participate in the stock dividend issue;
3) newly issued shares are to be transferred to the shareholders' securities accounts on 12.05.2000;
4) newly issued shares give the shareholders a right to receive dividends as from financial year 2000.

For: 1193202 votes, or 99.62% of votes represented at AGM.

3. Issue of stock options to motivate employees.

AGM resolved:

I Aiming to motivate AS Harju Elekter employees, to issue share options to AS Harju Elekter employees and executives, and members of the Management Boards of its subsidiaries and associated companies, on the following conditions:

1) to issue up to 200,000 options during year 2000, where each option entitles its holder to one new share of AS Harju Elekter with EEK 10.- par value and sales price pursuant to Tallinn Stock Exchange Rules and Regulations (not below average weighted price of the share during the preceding stock exchange day). After exercising of options the share capital of AS Harju Elekter will increase by EEK 2,000,000, accounting for 3.7% of company's share capital after stock dividend issue;
2) options will be of European-style exercise (i.e. option contract can be exercised on specified date only), with expiration date of two years after date of issue by Supervisory Board of AS Harju Elekter;
3) AS Harju Elekter employees and executives, and members of the Management Boards of its subsidiaries and associated companies are entitled to receive share options. Total number of shares to be issued will be determined by the Supervisory Board, to be published in the respective decision to increase share capital. In case of oversubscription the Supervisory Board will decide the allocation of shares;
4) each Supervisory Board member has a right to subscribe maximum of 5,000 shares;
5) employee will lose to right to exercise share option upon leaving the company;
6) options are disposable only through AS Harju Elekter Management Board;
7) aiming to avoid uncovered subscription for options, each subscriber will pay subscription fee of EEK 1 per share to the company, to be shown as non-interest bearing loan to AS Harju Elekter and reimbursed upon expiration of or disposal of option contract;
8) newly issued shares give the shareholders a right to receive dividends as from the year the option contracts are exercised.

II With regard to issue of share options, to exclude shareholders' pre-emptive right for subscription for 200,000 shares to be issued based on the Supervisory Board decision.

For: 1150680 votes, or 96.07% of votes represented at AGM.

4. Appointment of auditors for year 2000.

AGM resolved:

1) Appoint Andris Jegers and Indrek Alliksaar of KPMG Estonia AS to audit the financial reports of Harju Elekter in year 2000.
2) the auditors will be remunerated in accordance with the price list of KPMG Estonia and in accordance with the budget determined by AS Harju Elekter Supervisory Board.

For: 1194061 votes, or 99.69% of votes represented at AGM.

Andres Allikmäe
Management Board chairman

TOP


26.04.00
HARJU ELEKTER
REPORT

CONSOLIDATED INCOME STATEMENT 01.01.00-31.03.00

Consolidated, unaudited
in thousand EEK

 

Group

Parent

 

Q1 00

Q1 99

Q1 00

Q1 99

Net sales

42 977

35 406

36 584

31 351

Cost of goods sold

33 622

28 351

28 308

24 843

Gross profit

9 355

7 055

8 277

6 509

Operating expenses, incl.

4 543

3 838

3 797

3 355

marketing expenses

1 620

1 468

1 325

1 250

administrative expenses

2 923

2 370

2 473

2 105

Other revenues

38

638

17

638

Other expenses

159

106

157

105

Operating profit

4 690

3 749

4 340

3 687

Financial income, incl.

-financial income from subsidiaries

0

2 587

275

2 587

-financial income from associated companies

804

0

804

0

-financial income from other holdings 

23

39

23

39

-foreign exchange gain

0

2

0

1

-other interest and financial income 

249

63

267

83

Total financial income

1 077

2 690

1 368

2 709

Financial expenses, incl.

-financial expenses related with subsidiaries

0

0

0

10

-financial expenses related with associated companies

141

764

141

764

-interest expenses

443

378

404

327

-other financial expenses

25

5

6

2

Total financial expenses

609

1 147

551

1 103

Profit from normal operations

5 157

5 292

5 157

5 292

Corporate income tax

0

1 212

0

1 212

Net profit for the year

5 157

4 080

5 157

4 080

Karin Padjus
Chief Accountant

TOP


26.04.00
HARJU ELEKTER
REPORT

CONSOLIDATED BALANCE SHEET 31.03.2000

Consolidated, unaudited
in thousand EEK

 

Group

Parent

 

31.03.00

31.03.99

31.03.00

31.03.99

ASSETS

Cash, bank, securities

13 270

7 369

9 008

7 300

Total customer receivables

12 668

12 766

9 899

10 736

Other receivables

1 531

5 505

3 045

6 408

Accrued income

0

3

0

3

Prepaid expenses

3 386

710

2 776

699

Total current receivables

17 585

18 984

15 720

17 846

Raw materials and inventories

17 186

16 353

13 195

14 369

Goods

3 753

3 251

3 539

3 090

Total inventories

20 939

19 604

16 734

17 459

TOTAL CURRENT ASSETS

51 794

45 957

41 462

42 605

Stock and shares in subsidiaries

0

0

5 120

3 259

Other receivables from subsidiaries

0

0

256

465

Stock and shares in associated companies 

18 085

16 488

18 085

16 488

Other shares

1 554

1 554

1 554

1 554

Other long-term receivables

430

465

429

434

Total financial investments

20 069

18 507

25 444

22 200

Plant and equipment

60 378

37 200

60 378

37 200

Other equipment and fixtures

29 353

25 410

23 387

20 019

Other inventory

2 709

1 707

2 210

1 434

Accumulated depreciation

-20 133

-15 520

-18 504

-14 414

Unrealized capital investments

3 294

3 392

3 294

2 828

Prepayments for fixed assets

2 299

0

0

564

Total tangible assets

77 901

52 189

70 767

47 631

Goodwill

280

377

0

0

Licenses

505

0

505

0

Total intangible assets

785

377

505

0

 

TOTAL NON-CURRENT ASSETS

98 755

71 073

96 716

69 831

TOTAL ASSETS

150 549

117 030

138 177

112 436

 

LIABILITIES AND OWNERS' EQUITY

Debentures

433

520

0

0

Repayment of long-term loans

6 257

3 936

6 257

3 936

Short-term loans from banks

1 595

1 873

907

1 573

Customer prepayments

28

21

28

20

Supplier payables

11 341

8 074

9 311

6 913

Other short-term borrowings

929

3 865

958

3 865

Tax liabilities

4 310

3 945

3 929

3 731

Accrued expenses

5 965

4 780

5 213

4 300

TOTAL CURRENT LIABILITIES

30 858

27 014

26 602

24 338

Non-convertible debt

748

1 362

0

0

Long-term bank loan

25 913

15 744

18 544

15 744

Deferred income tax liability

0

3 051

0

2 495

TOTAL NON-CURRENT LIABILITIES

26 661

20 157

18 544

18 239

TOTAL LIABILITIES

57 518

47 171

45 147

42 577

Share capital

18 000

18 000

18 000

18 000

Restricted reserves

3 610

3 610

3 610

3 610

Retained earnings

66 264

44 169

66 264

44 169

Net profit for the year

5 157

4 080

5 157

4 080

TOTAL OWNERS' EQUITY

93 031

69 859

93 031

69 859

TOTAL LIABILITIES AND OWNERS' EQUITY

150 550

117 030

138 178

112 436

Karin Padjus
Chief Accountant

TOP


26.04.00
HARJU ELEKTER
COMMENTARY TO FINANCIAL RESULTS

COMMENTARY TO THE FINANCIAL RESULTS, Q1 2000

In Q1 2000 AS Harju Elekter group's net sales amounted to EEK 43.0 mln (Q1 1999 – EEK 35.4 mln) and net profit EEK 5.2 mln (Q1 1999 – EEK 4.1 mln). The group's turnover grew in Q1 on annual basis by 21% and net profit by 27%. In Q1 1999 the profit figure also included EEK 2.6 mln of extraordinary financial income from sale of shares in subsidiary AS Saajos Balti. Hence the comparable figure for profit from normal operations has almost doubled (Q1 2000 – EEK 5.2 mln; Q1 1999 – EEK 2.7 mln). Consolidated profit from subsidiaries was EEK 0.7 mln (Q1 1999 – EEK 0.8 mln loss). This year's Q1 reports do not include the results of AS Glamox-Harju Elekter as the preliminary negotiations for sale of Harju Elekter's 20% holding in the company are in progress.

Parent company's turnover grew by 16% (Q1 2000 – EEK 36.6 mln; Q1 1999 – EEK 31.4 mln) and net profit by 16% (Q1 2000 – EEK 4.3 mln; Q1 1999 – EEK 3.7 mln).

Turnover by production units:

 

Q1 2000

Q1 1999

 

Cable harnesses

EEK 15.6 mln

EEK 10.9 mln

143.1%

Electrical equipment

EEK 14.8 mln

EEK 15.4 mln

96.1%

AS Eltek

EEK 7.8 mln

EEK 4.8 mln

162.5%

Output of cable harnesses for cars and electronic equipment grew mainly due to increased supply to North European car and electronics industry.Increased turnover of AS Eltek is mainly due to substantially grown supply of UPS cases to APC Denmark A/S under the respective agreement, effective as of February 2000.

Andres Allikmäe
Chairman of the Management Board

TOP


12.04.00
HARJU ELEKTER
ANNOUNCEMENT

FINANCIAL RESULTS 03/2000, PROPOSALS TO AGM

On preliminary information, the consolidated net sales of AS Harju Elekter in Q1 2000 amounted to EEK 36.6 million and operating profit EEK 4.4 million (117% and 118% of last year's results, respectively). Complete consolidated Q1 financial reports will be published on week 17.

Some publications have recently published incorrect information, stating that Harju Elekter will not pay dividends for year 1999. We hereby confirm:

1) Management Board of AS Harju Elekter will make a proposal to the annual general meeting of shareholders to pay dividends EEK 3.00 per share for year 1999;

2) in addition to payment of dividends, Harju Elekter will also conduct a stock dividend issue, where each shareholder will receive two new shares for each currently owned share;

3) list of shareholders will be closed for payment of dividends for year 1999 and participation in stock dividend issue on 12.05.2000, 8:00 a.m.;

4) new share will entitle the shareholders for dividends as of year 2000.

Endel Palla
Supervisory Board chairman

TOP


21.03.00
HARJU ELEKTER
INCOME STATEMENT

CONSOLIDATED INCOME STATEMENT 01.01.1999-31.12.1999

 

Group

Harju Elekter

 

1999

1998

1999

1998

Net sales

158,395,685

161,280,076

137,726,931

147,894,369

Cost of goods sold

126,735,418

126,997,193

109,982,369

116,753,344

Gross profit

31,660,267

34,282,883

27,744,562

31,141,025

         

Marketing expenses

6,684,166

7,084,155

5,477,357

6,417,423

Administration and general expenses

11,629,619

11,572,315

10,400,432

10,586,573

Other operating income

775,738

200,643

769,934

189,367

Other operating expenses

747,016

1,234,883

676,215

1,065,842

         

Operating profit

13,375,204

14,592,173

11,960,492

13,260,554

 

Financial income, incl.

-from subsidiaries

2,586,619

0

4,162,345

668,407

-from affiliated companies

2,743,591

1,746,568

2,743,591

1,746,568

-from other holdings

4,564,833

4,156,798

4,564,833

4,156,798

-foreign exchange gain

103,636

48,659

98,923

44,892

-other interest and financial income

834,980

229,425

899,904

305,792

Total financial income

10,833,659

6,181,450

12,469,596

6,922,457

Financial expenses, incl.

-related with affiliated companies

2,573,421

0

2,573,421

0

-interest expense

1,587,546

1,230,845

1,416,349

1,061,630

-foreign exchange loss

40,059

53,569

27,874

40,716

-value adjustment of financial assets

0

27,320

13,660

 

-other financial expenses

61,147

1,080,551

61,147

1,080,551

Total financial expenses

4,262,173

2,392,285

4,078,791

2,196,557

 

Profit from normal operations

19,946,690

18,381,338

20,351,297

17,986,454

 

Income tax

903,142

1,312,834

751,134

1,215,416

Deferred income tax

-3,051,406

922,502

-2,494,791

625,036

 

Net profit for the financial year

22,094,954

16,146,002

22,094,954

16,146,002

Karin Padjus
Chief Accountant

Lembit Libe
Chief Economist

TOP


21.03.00
HARJU ELEKTER
ANNOUNCEMENT

ANNUAL GENERAL MEETING OF SHAREHOLDERS

Annual general meeting of Harju Elekter shareholders will be held on 27.04.2000, beginning at 10:00 a.m., at venue of Keila Kultuurikeskus (Keskväljak 12, Keila).

Agenda:1) Approval of AS Harju Elekter 1999 annual report and profit allocation.2) Stock dividend issue.3) Share option to employees.4) Appointment of auditors for year 2000;

The Management Board made a proposal to pay dividends for year 1999 in total amount of EEK 5.4 million (1998 – EEK 3.6 million), or EEK 3.00 per share (1998 – EEK 2.00). List of Harju Elekter shareholders will be fixed for payment of dividends on 12.05.2000, at 8.00 a.m.

Andres Allikmäe
Chairman of the Management Board

Lembit Libe
Chief Economist

TOP


21.03.00
HARJU ELEKTER
ANNOUNCEMENT

STOCK DIVIDEND ISSUE

Based on information in balance sheet as at 31.12.1999, a part of AS Harju Elekter approved annual report, the Supervisory Board decided to propose to the shareholders' annual general meeting to increase the company's share capital on the account of AS Harju Elekter owners' equity (retained earnings) through stock dividend issue, on the following conditions:

1) increase share capital by EEK 36 000 000, from EEK 18 000 000 to EEK 54 000 000, through issue of 2 new nominal share per existing one share, to account for issue of total of 3 600 000 new shares at EEK 10 par value; each share is to entitle to its holder one vote. After increase of share capital, Harju Elekter share capital volume is EEK 54 000 000;

2) Harju Elekter shareholders, registered in the company's list of shareholders as of 12.05.2000, at 8:00 a.m., are entitled to participate in the stock dividend issue;

3) newly issued shares are to be transferred to the shareholders' securities accounts on 12.05.2000;

4) newly issued shares give the shareholders a right to receive dividends as from financial year 2000.

Endel Palla
Chairman of Supervisory Board

TOP


21.03.00
HARJU ELEKTER
ANNOUNCEMENT

SHARE OPTIONS

Supervisory Board of AS Harju Elekter decided:

I Aiming to motivate AS Harju Elekter employees, the board will make a proposal to 27.04.2000 annual general meeting of AS Harju Elekter shareholders to authorize the Supervisory Board of AS Harju Elekter to issue share options to AS Harju Elekter employees and executives, and members of the Management Boards of its subsidiaries and associated companies, on the following conditions:

1) to issue up to 200 000 options during year 2000, where each option entitles its holder to one new share of AS Harju Elekter with EEK 10.- par value and sales price pursuant to Tallinn Stock Exchange Rules and Regulations (not below average weighted price of the share during the preceding stock exchange day). After exercising of options the share capital of AS Harju Elekter will increase by EEK 2 000 000, accounting for 3.7% of company's share capital after stock dividend issue;

2) options will be of European-style exercise (i.e. option contract can be exercised on specified date only), with expiration date of two years after date of issue by Supervisory Board of AS Harju Elekter;

3) AS Harju Elekter employees and executives, and members of the Management Boards of its subsidiaries and associated companies are entitled to receive share options. Total number of share to be issued will be determined by the Supervisory Board, to be published in the respective decision to increase share capital. In case of oversubscription the Supervisory Board will decide the allocation of shares;

4) each Supervisory Board member has a right to subscribe maximum of 5000 shares;

5) employee will lose to right to exercise share option upon leaving the company;

6) options are disposable only through AS Harju Elekter Management Board;

7) aiming to avoid uncovered subscription for options, each subscriber will pay subscription fee of EEK 1 per share to the company, to be shown as non-interest bearing loan to AS Harju Elekter and reimbursed upon expiration of or disposal of option contract;

8) newly issued shares give the shareholders a right to receive dividends as from the year the option contracts are exercised.

II With regard to issue of share options, the board will present for AGM approval a decision to exclude shareholders' pre-emptive right for subscription for 200 000 shares to be issued based on the Supervisory Board decision.

Endel Palla
Chairman of Supervisory Board

TOP


21.03.00
HARJU ELEKTER
BALANCE SHEET

CONSOLIDATED BALANCE SHEET 31.12.1999

Assets

Group

Harju Elekter

Current assets

31.12.1999

31.12.1998

31.12.1999

31.12.1998

Cash and bank

17,532,156

6,076,533

17,066,136

5,867,060

Marketable securities

450,237

367,971

450,237

367,971

Due from customers

Accounts receivable

11,596,828

12,607,282

9,381,684

11,453,858

Doubtful accounts

-528,601

-552,000

-487,110

-552,000

Total

11,068,227

12,055,282

8,894,574

10,901,858

Other receivables

Receivables from parent company/ subsidiary

0

0

1,084,759

465,698

Receivables from affiliated companies

1,199,616

1,096,250

1,133,246

1,051,106

Other receivables

310,641

394,643

255,743

367,909

Total

1,510,257

1,490,893

2,473,748

1,884,713

Accrued income

Interest receivable

88,889

32,876

88,493

32,652

Prepaid expenses

Prepaid taxes

1,348,578

603,940

1,040,975

603,940

Other prepaid expenses

448,644

201,587

434,059

121,058

Total

1,797,222

805,527

1,475,034

724,998

Inventories

Raw materials

8,036,648

11,583,150

6,899,486

10,802,822

Work-in-progress

3,090,520

3,649,104

3,090,520

3,649,104

Finished goods

2,359,938

3,304,608

1,032,100

2,630,617

Merchandise purchased for resale

3,458,201

3,192,675

3,303,241

3,011,458

Prepayments to suppliers

17,868

4,919

17,868

4,919

Total

16,963,175

21,734,456

14,343,215

20,098,920

Total current assets

49,410,163

42,563,538

44,791,437

39,878,172

Non-current assets

Long-term financial assets

Stock and shares in subsidiaries

0

0

4,845,132

3,369,406

Long-term receivables from subsidiaries

0

0

255,535

434,260

Stock and shares in affiliated companies

17,422,165

16,350,996

17,422,165

16,350,996

Other shares

1,554,075

1,554,075

1,554,075

1,554,075

Other long-term receivables

429,447

514,171

429,447

514,171

Total

19,405,687

18,419,242

24,506,354

22,222,908

Non-current tangible assets

Land and buildings

55,888,138

37,200,196

55,913,315

37,200,196

Plant and equipment

27,168,285

26,862,638

21,213,557

21,517,382

Other equipment and fixtures

2,504,506

1,984,385

2,191,101

1,740,267

Accumulated depreciation

-18,676,981

-15,564,643

-17,215,476

-14,607,553

Construction in progress

54,272

499,835

54,272

499,835

Uninstalled fixtures/equipment

0

4,800

0

4,800

Prepayments for fixed assets

904,928

564,244

757,560

564,244

Total

67,843,148

51,551,455

62,914,329

46,919,171

Intangible assets

Licences

533,188

0

533,188

0

Goodwill

304,478

400,629

0

0

Total

837,666

400,629

533,188

0

Total non-current assets

88,086,501

70,371,326

87,953,871

69,142,079

TOTAL ASSETS

137,496,664

112,934,864

132,745,308

109,020,251

Liabilities and owners’ equity

Group

Harju Elekter

Liabilities

31.12.1999

31.12.1998

31.12.1999

31.12.1998

Current liabilities

Debt obligations

Debentures

913,580

726,193

0

0

Current period long-term debt repayment

7,723,273

4,937,816

7,723,273

4,937,816

Short-term loans from credit institutions

323,349

2,010,747

323,349

2,010,747

Total

8,960,202

7,674,756

8,046,622

6,948,563

Customer prepayments

22,997

283,190

22,997

276,351

Accounts payable to suppliers

11,366,349

7,429,629

9,450,851

6,904,113

Other payables

Payables to subsidiaries/ parent company

0

0

   

Payables to affiliated companies

565,091

785,781

565,091

785,781

Other liabilities

307,521

0

307,521

0

Total

872,612

785,781

872,612

785,781

Tax liabilities

4,683,509

2,875,456

4,162,658

2,549,348

Accrued expenses

Salary-related accrued expenses

4,414,046

4,336,526

3,764,992

3,927,849

Interest payable

3,212

42

2,588

0

Other accrued expenses

7,622

13,451

3,731

10,269

Total

4,424,880

4,350,019

3,771,311

3,938,118

Total current liabilities

30,330,549

23,398,831

26,327,051

21,402,274

Long-term liabilities (nonconvertible debt)

747,858

1,361,439

0

0

Long-term bank loans

18,544,291

15,744,174

18,544,291

15,744,174

Other provisions

0

3,051,408

0

2,494,791

Total non-current liabilities

19,292,149

20,157,021

18,544,291

18,238,965

Total liabilities

49,622,698

43,555,852

44,871,342

39,641,239

Owners’ equity

Capital stock (par value)

18,000,000

18,000,000

18,000,000

18,000,000

Statutory reserves

3,610,000

2,010,000

3,610,000

2,010,000

Retained earnings

44,169,012

33,223,010

44,169,012

33,223,010

Net profit (loss) for the financial year

22,094,954

16,146,002

22,094,954

16,146,002

Total owners’ equity

87,873,966

69,379,012

87,873,966

69,379,012

TOTAL LIABILITIES AND OWNERS’ EQUITY

137,496,664

112,934,864

132,745,308

109,020,251

Karin Padjus
Chief Accountant

Lembit Libe
Chief Economist

TOP


21.03.00
HARJU ELEKTER
COMMENTARY TO THE FINANCIAL RESULTS

COMMENTARY TO THE AUDITED FINANCIAL RESULTS FOR YEAR 1999

In 1999 the net sales of the Group amounted to 158.4 million kroons (1998 – 161.3 million kroons), the turnover of the parent company was 137.7 million kroons (1998 – 147.9 million kroons). Taking into account that the 1998 net sales included 14.3 million kroons sales revenue from Fireproof Doors Factory (now AS Saajos Balti), the relative growth rate for the group was 7.8%.

Turnover by main fields of activity:

 

1999

1998

change

Cable harnesses

48.3 mln EEK

43.6 mln EEK

110.8%

Electrical equipment

49.3 mln EEK

55.4 mln EEK

89.0%

Cases for communications and IT-equipment

28.7 mln EEK

18.7 mln EEK

153.5%

Production of cable harnesses increased in the context of increased output volume of PKC Group Oyj (co-operation partner of Harju Elekter) directed to North European car and electronics industry. Sales on domestic electrical construction market fell 20%, resulting in decreased sales volume but larger market share. Exports accounted for 46.5 % (98 – 41.4 %) of total sales.

The Group's net profit for the financial year was 22.1 million kroons (1998 – 16.1 million kroons), providing 37.3% y-o-y increase. Due to the conditions of economic recession the company's operating profit fell 10% on annual basis (1999 – 12.0 million kroons; 1998 – 13.3 million kroons). Net financial income increased from 4.7 million kroons in 1998 up to 8.4 million kroons in 1999. Profit before taxes was higher by 8.2%. Due to the provisions of the new Law on Income Tax, effective as of 01.01.2000, the deferred income tax in the amount 3.1 million kroons was transferred to the owners' equity section of the income statement. Earnings per share stood at 12.27 kroons (8.97 kroons in 1998).

Substantial changes in group's activities:

- Electrical Equipment Factory introduced to the market a substation in a sheet metal enclosure HEKAVM1, manufactured with the license of the French company Schneider Electric Industry.

- Cable Harnesses Factory enlarged the area of its Haapsalu plant, employing 67 people as of the end of 1999.

- Subsidiary AS Eltek was chosen to be the supplier of UPS-cases for an American company APC. The delivery volumes stipulated in the contract will help to increase the company's turnover in 2000 by ca 50%.

- Harju Elekter sold a part of its holding in AS Saajos Balti (from 55% to 33.3%) to Inexa Panel A/S, aiming to include finances to considerably broaden its future horizons on fireproof doors market and to achieve a better synergy with other sub-units of AS Harju Elekter.

In 1999 Harju Elekter group made investments in total worth of EEK 22.2 million.

Andres Allikmäe
Chairman of the Management Board

TOP


14.02.00
HARJU ELEKTER
ANNOUNCEMENT

SUBSIDIARY AS ELTEK WILL BECOME A SUPPLIER FOR USA COMPANY

After the agreement concluded between AS Eltek and APC Denmark A/S (subsidiary of American Power Conversion) took effect in February this year, Eltek will start supplying cases for UPS equipment to APC, the largest producer of UPS equipment in the world. The contractual volume of delivery will increase Eltek's turnover figure in year 2000 by more than 1.5 times, to EEK 35 million level.

Due to sharp increase in delivery volume the plant needs additional output capacities. AS Eltek Supervisory Board approved the investment plan for year 2000 at EEK 8 million, aimed for acquisition of fully automatic metal processing center. Parent company Harju Elekter will invest EEK 3.2 million from owners' equity to expand Eltek's production premises, and also guarantee Eltek's FIM 3 million loan from Finnish banks.

AS Eltek is a subsidiary of Harju Elekter since 1998. The company's core business is production of data communication and telephone network distribution cabinets and UPS-cases. The company's turnover in 1999 amounted to EEK 24 million (EEK 18.5 million in 1998), of which the exports accounted for 42%.

AS Harju Elekter and its subsidiaries and affiliated companies AS Eltek, AS Keila Kaabel, AS Saajos Balti and AS Glamox Harju Elekter employ altogether 800 people, thus being the largest employer in Keila area.

Andres Allikmäe
Chairman of the Management Board

TOP


10.02.00
HARJU ELEKTER
ANNOUNCEMENT

PRELIMINARY 1999 FINANCIAL RESULTS

On unaudited information the consolidated sales of AS Harju Elekter in 1999 amounted to EEK 158.4 mln (1998 – EEK 161.3 mln) and pre-tax profit EEK 20.0 mln (1998 – EEK 18.4 mln). The 1999 figures do not include the results of fire-proof doors factory, which operates since the beginning of 1999 as independent subsidiary under name AS Saajos Balti (1998 turnover EEK 14.4 mln). Hence the comparable net sales of Harju Elekter grew in 1999 by 7.9% and pre-tax profit by 8.7%.

Annual report will be published on the 10th week of year 2000.

Andres Allikmäe
Chairman of the Management Board

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