(Drammen, 25 October 2013) Eltek reported revenue of NOK 1,012 million and an order entry of NOK 982 million in the third quarter 2013, representing increases of 20 percent and six percent over the third quarter last year. Gross margin increased to 29.3 percent (28.5), and operating result (EBIT) before one-off costs increased by 86 percent to NOK 114 million. Including one-off costs the EBIT was NOK 89 million. Profit before tax increased 76 percent to NOK 68 million, and net profit was NOK 53 million in the third quarter.
For the first nine months, Eltek reported a nine percent increase in revenue to NOK 2,755 million and a six percent increase in order entry to NOK 2,833 million. Order backlog at the end of the first nine months was NOK 810 million, an increase of five percent compared to the end of the first nine months 2012. Operating profit (EBIT) for the first nine months increased 30 percent to NOK 201 million, whereas profit before tax increased 56 percent to NOK 144 million. Net profit was NOK 109 million in the first nine months 2013.
The company continues to see a relatively active telecom power market, and believes its High Efficiency technology and cost-efficient product portfolio will continue to allow for growth in the telecom power market in the longer term.
The market outlook remains positive also for the industrial applications business, although revenue growth has fallen below expectations so far this year.
Overall Eltek is entering the fourth quarter with a five percent higher order backlog than the company had at the same time last year. This said, the backlog is lower than in the beginning of third quarter and the revenue visibility for the fourth quarter is relatively low.
Eltek is increasingly focused on its core operations, and in September divested its E-Vehicles activities. The company is considering alternatives for its Renewable business, which has been underperforming, and expects to make a decision in the fourth quarter. The total investment in Renewables amount to about NOK 110 million.
The company hosts a presentation and subsequent Q&A session on a combined webcast and conference call at 8:30 CEST today.
Webcast: Click on the webcast link on www.eltek.com/ir
Conference call: Please dial-in 5 minutes prior to start time using the below number and confirmation code.
Norway: +47 2316 2729
International: +44 (0) 20 3427 1918
US: +1 212 444 0412
Participants will be asked for the name, company, and the conference ID number 1826922
Please find enclosed the interim report for the third quarter 2013 on http://www.newsweb.no
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).
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Source: Eltek ASA via Thomson Reuters ONE