OREANDA-NEWS. March 05, 2011. The recovery of the economy in Estonia, as well as neighbouring markets, has positively influenced the sales volumes of the Group in the second half-year of this year. The consolidated sales revenue of the Group in the fourth quarter was 201.5 million kroons (12.9 million euros), which was 27% more than the result of the comparable period. The sales revenue of 2010 increased in comparison with the reference period by 1.1% to 639.7 million kroons (40.9 million euros), 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, almost 90%. The sales revenue on production received from customers outside of the Group increased by 30% to 181.5 million kroons (11.6 million euros) in fourth quarter and by 1% to 567.9 million kroons (36.3 million euros) in 2010.

Of the markets, the domestic markets (Estonia, Lithuania and Finland) of the Group\'s companies prevailed, where 85% (90%) of the Group\'s products and services were sold. 65% (63%) of Group products were sold outside of Estonia.

The reporting quarter demonstrated a boom in the Finnish as well as in Lithuanian economy. Sales to the Finnish market increased by 44% and to the Lithuanian market by 32% compared to Q4 2009. In the reporting quarter, sales to the Estonian market increased by 3.2%. The sale volume of the Group to other European Union countries almost doubled and increased by 30% to the other markets in the reporting period compared to Q4 2009.

Within the 12 month period, sales to the domestic markets of the Group remained below the sales volume of the reference period. At the same time, the Group has been working on finding new markets. It has increased the share of other markets in the sales revenue of the Group from 10% in 2009 to 15% in 2010.

In the current year, sale to other EU countries has almost doubled and a sale outside the EU has grown by more than one-fourth. Portugal, France, Czech Republic and Malaysia – during 2010 the Group has sold its products to those markets totally in amount 50.2 million kroons (3.2 million euros). The Group has also sold its products to Sweden, Latvia and Poland and outside of the EU to the markets of Belarus, Ukraine, Russia and Norway.

In the fourth quarter, there was an average of 420 (445) people working in the Group, included 268 (286) employees in Estonia, 67 (78) employees in Lithuania and 85 (81) employees in Finland. In 2010, the average number of employees was 424 (452). As at the balance day on 31 December, there were 440 people working in the Group, which are 24 employees less than on the beginning of the year.

During the fourth quarter, labour costs increased by 9.2% compared to the comparable period, reaching 30.8 million kroons (2.64 million euros). In 2010 the employees were paid 109.9 million kroons (7.02 million euros) in salaries, bonuses and compensation, which was 3.9% lower than during the comparable period. The average wage per employee was 21,597 kroons (1,380 euros) and 21,070 kroons (1,346 euros) in the compared period.

The reporting period was characterized by strengthened competition and pressure on the sales prices, leading to a drop in Group\'s profit margins. Operating profit of Q4 2010 was 5.5 million kroons (350,000 euros), which was 9% less compared to the Q4 2009. Return of sales for the period was 2.7% (3.8%).

In Q4 2010 EBITDA was 10.9 million kroons or 0.70 million euros, which is 0.3 million kroons (20,000 euros) less than in comparable quarter; return of sales before depreciation was 5.4% (7.1%). In 2010 EBIT was 23.8 million kroons (1.52 million euros) and EBITDA was 45.3 million kroons (2.90 million euros); 28.3 million kroons (1.81 million euros) and 48.3 million kroons (3.08 million euros) respectively compared to the same periods last year. Return of sales of 2010 was 3.7% (4.5%) and return of sales before depreciation 7.1% (7.6%).

Overall, the consolidated net profit of the Q4 2010 was 4.4 million kroons or 0.28 million euros (Q4 2009: 4.5 million kroons or 0.29 million euros), of which the share of the owners of the parent company was 2.7 million kroons or 0.17 million euros (Q4 2009: 3.8 million kroons or 0.25 million euros).

EPS of the Q4 was 0.16 kroons or 0.01 euros (Q4 2009: 0.23 kroons or 0.01 euros). The consolidated net profit of 2010 was 35.9 million kroons (2.30 million euros), which is 65.6% more than in compared period. The share of the owners of the parent company was 34.0 million kroons (2.17 million euros), increasing by 76.9% comparing to year 2009. EPS of the reporting period was 2.02 kroons or 0.13 euros (2009: 1.14 kroons or 0.07 euros).

In 2010 the Group invested in real estate, tangible fixed assets and intangible fixed assets, totally 43.2 million kroons (2.76 million euros), of which the cost of assets acquired by way of financial lease formed 29.8 million kroons (1.9 million euros). During the compared period the Group invested 9.2 million kroons (0.59 million euros) in real estate, 16.3 million kroons (1.04 million euros) in tangible fixed assets and 3.8 million kroons (0.25 million euros) in intangible fixed assets, totally 29.3 million kroons (1.88 million euros).

As at December 31 2010 the total current assets constituted 26% (30%) and the total non-current assets 74% (70%); and the other side external finance 17% (18%) and equity 83% (82%) of the balance sheet total.