Elcoteq Network Corporation's interim report announced
Apr 29, 2005
Elcoteq has reported that its net sales between January and March increased 38% compared to the same period last year totalling MEUR 810.3. Operating income developed in line with the company's forecast and amounted to MEUR 9.5 (MEUR 8.1).
Most of the increase in net sales came from Europe and especially from Americas due to Elcoteq's acquisition of the Thomson manufacturing plant in Juarez, Mexico, at the end of 2004.
The Group's operating income in the first quarter developed as the company predicted and amounted to MEUR 9.5 (MEUR 8.1), or 1.2% of net sales.
Gross capital expenditures on fixed assets between January and March totaled MEUR 21.6 (MEUR 19.9), or 2.7% of net sales. Most investments took place in Europe where the largest single item was the new manufacturing plant in St. Petersburg, Russia. Depreciation amounted to MEUR 17.0 (MEUR 13.7).
Elcoteq's new manufacturing plant in Bangalore, India, was completed in record time during the first quarter. This plant will serve both terminal products and communications network equipment customers. When operating at full capacity the plant will have approximately 1,000 employees.
Elcoteq estimates that for the full year 2005 its net sales will increase and operating income from continuing operations will improve clearly compared to last year, and therefore the company's previous forecast for the full year remains unchanged.