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Eltel’s strong performance continues throughout three quarters of 2012

2012-11-12

Eltel’s performance has continued strong in 2012 and the company is well underway to outperform 2011. Net sales increased by 17% in January-September year-on-year, and totaled EUR 819,6 million (699,6). Sales in the third quarter were 13% ahead of 2011. The number of employees at the end of September was 8.677, 8% higher than a year before.

Strong sales performance in all quarters of 2012
In all of the quarters of 2012 Eltel has outperformed its sales of 2011. “Our performance has been extraordinary considering the general conditions of economy in Europe,” says Axel Hjärne, President and CEO of Eltel Group. “On the other hand we have to bear in mind that Eltel operates in the better part of European markets meaning Nordic countries, Baltic states, Poland and Germany. Last year we had a very strong fourth quarter and it will be a challenge to beat it this year. However our forecast is that we will show a very good growth overall in 2012. We firmly believe that our market position has become stronger.”

Some of the strongest performers have been Power distribution, Mobile telecom and Fixed telecom Business Units. “All of these units have outperformed year 2011 by large margins. The background is the contracts we signed in 2011 and early 2012. Thanks to our great presence in the key markets, competitiveness and preparedness to satisfy customers’ needs we are in this situation. Also Power transmission has been booking major new orders and their order backlog is record high. Worth mentioning are the four big transmission contracts with the Polish grid operator PSE amounting to EUR 110 millions.”

Latest contracts in wind power and TeliaSonera in Sweden
The wind power investments have gained momentum. Eltel signed a construction agreement with NCC in Finland to build wind parks for an equity investor Taaleritehdas. “This is only a beginning and there is more potential with additional contracts providing the permitting processes progress positively.” More lately Eltel signed a repeat contract with Statkraft SCA Vind AB in the north of Sweden to build substations and cable networks. Another contract with the owner of network E.ON. consists of four transformer stations for the same wind park. “The growth of renewable energy is very positive for our future prospect and Eltel’s offering scope of mechanical & electrical installations, substations and connection lines is perfect for the market,” says Axel Hjärne.

Only a couple of days ago Eltel announced a new contract with TeliaSonera in Sweden for the years 2013−2014. The frame agreement covers build, connect and care services of Telia’s networks and it will grow Eltel’s market share in Sweden.

Strong backlog and preparing for 2013
“Our focus now is to ensure a good finish for 2012. Our backlog is good and normally the last quarter is a busy period for us. Until now there have not been major cuts in the levels of operator investments in Eltel’s markets. This shows the needs of investments and upgrades of the infrastructures in our society. Also there is a constant need of maintaining the functionality of services whether it is electricity, telecommunications or transportation. Eltel for example signed in October a five year maintenance contract with the Finnish railways.”

“While the market fundamentals on the whole continue to be strong it is a fact that winter is coming. Typically the first three to four months show lower levels of activity and we need to be prepared for that. Flexibility in utilization of workforce, production efficiency including best practices across geographies and continued focus on Health and Safety are some of the key activities internally to ensure good and improving level of performance at Eltel. We have very important contracts to deliver and it is crucial for us that we maintain the trust of our customers in all conditions,” concludes Axel Hjärne.

More information:
Axel Hjärne, President and CEO Eltel Group
Tel. + 358 20 411 3001, axel.hjarne@eltelnetworks.com

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