Eltek ASA - Report third quarter 2009
(Thomson Reuters ONE) - Drammen (22 October 2009) Eltek ASA reports revenue of NOK 1,408million and a gross profit of NOK 315 million for the third quarter2009. Operating profit (EBIT) was NOK 45 million, and profit beforetax NOK 27 million. The focus on working capital management continuedto support cash flow, and free cash flow was NOK 142 million in thethird quarter, and net debt was reduced by NOK 149 million to NOK 575million at the end of the third quarter.Revenue was on par with the third quarter 2008 but declined sixpercent on a currency adjusted basis in a challenging marketenvironment. The gross margin declined to 22.4 percent from 25.6percent in the third quarter 2008. Gross margin is stable in EltekValere but decline in Nera Networks and NeraTel in the quarter. Netfinancials were a negative NOK 18 million in the quarter, includingpositive currency effects of NOK 9 million.Cash flow from operating activities was NOK 225 million in the thirdquarter and net cash flow from investing activities NOK -83 million,generating a free cash flow after investment of NOK 142 million. Forthe first nine months free cash flow after investment was NOK 392million, compared to a negative free cash flow of NOK 314 million inthe same period last year. Working capital management remains a keypriority for the company.Eltek's main focus in 2009 has been to align the organisation to aweaker market, and to improve financial flexibility. Both EltekValere and Nera Networks have taken measures to reduce their costbases and expect continued improvements in the operational costlevels going forward.Eltek Valere will take further action to meet the growth challengesposed by a weaker telecom equipment market, and will intensify itsefforts to increase sales in the replacement market as well as salesof equipment for industrial applications. The company has begundeveloping a position in the large and growing solar power invertermarket.Nera Networks' main focus will be on improving gross margins, throughincreasing sales of radio products and streamlining of its valuechain. The order backlog indicates higher deliveries in the finalquarter of the year. For the overall point-to-point microwaveequipment market, industry analysts expect a small decline in 2009 toturn into a high-growth market from 2010 onwards. Nera Networks isalso planning a second phase in its restructuring program, focused onprocess improvements that will support gross margins.The main operational risk for the fourth quarter relates to potentialshortage of components as suppliers have reduced production andinventories during the economic slowdown.Please find enclosed the interim report for the third quarter 2009 onhttp://www.newsweb.nohttp://hugin.info/86881/R/1349271/325097.pdfhttp://hugin.info/86881/R/1349271/325098.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 22.10.2009 - 08:25 Uhr
Sprache: Deutsch
News-ID 7254
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