Nera Networks results will affect Eltek Q3 results negatively
(Thomson Reuters ONE) -
A review of the business activities in Nera Networks has concluded with
significant adjustments of project and operating costs and bad debt provisions
which will negatively affect Eltek ASA's third quarter 2010 results. The
underlying activity level in the microwave transmission business has remained
subdued and including the above charges of approximately NOK 75 million Nera
Networks is expected to report EBIT of approximately NOK -105 million in the
third quarter 2010. The cash effect of the charges mostly relates to prior
quarters and will not have a significant impact on cash flow in the third
quarter.
Nera Networks is a wholly owned subsidiary of Eltek ASA, which announces its
interim results for the third quarter 21 October 2010.
A greater part of the charges relate to the operations in Brazil, for which Nera
Networks took similar charges of NOK 27 million in the interim results for the
second quarter and first half year 2010. Nera Networks has taken measures to
remedy the inadequacies uncovered in project management and financial control in
the Brazilian operations, including the appointment of a new management team
whereby the country manager, finance manager and operations manager have been
replaced.
For further information, please contact:
Jørgen Larsen, CEO in Eltek ASA, tel +47 9052 7930
Pål Skistad, CFO in Eltek ASA, tel +47 9085 0378
Eltek is a strategic technology partner within power solutions and microwave
radio transmission, through its three business units Eltek Valere, Nera Networks
and Nera Telecommunications. The company reported revenue of NOK 5.8 billion in
2009, and had close to 3,330 employees in more than 50 countries at the end of
the year. Eltek is listed on Oslo Stock Exchange and headquartered in Drammen,
Norway.
Nera Networks designs, develops, manufactures and markets a broad portfolio of
point-to-point microwave transmission radios under the Evolution brand name. The
company has extensive systems and project management expertise for turn-key
deliveries and after sales support and services. Headquartered in Bergen,
Norway, the company counts approximately 800 employees and reported revenue of
more than NOK 1.8 billion in 2009.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1450693]
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(i) the releases contained herein are protected by copyright and
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originality of the information contained therein.
Source: Eltek ASA via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 11.10.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 44777
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Town:
Drammen
Kategorie:
Business News
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