Harju Elekter Group's third quarter results show a nearly one-third drop in revenue

From GlobeNewswire: 2024-10-23 00:00:00

Harju Elekter Group’s third quarter results were impacted by a decline in orders, leading to a revenue drop of almost a third. The company implemented cost-saving measures, including reducing the number of employees from 956 to 841. Despite an increase in order volumes towards the end of the quarter, challenges are expected for the next two quarters. The company remains optimistic about growth opportunities.
In the third quarter, Harju Elekter Group’s revenue decreased by 26.8% to 41.2 million euros compared to the previous year. However, profits were driven by improved supply chain performance, increased order volumes, and cost optimization. Operating expenses decreased by 26.5%, with significant reductions in the cost of sales. The company’s move to the Tondi business district of Tallinn marks a strategic shift.
The revenue decline for Harju Elekter Group was mainly due to lower core business orders and stabilization in key markets. The production segment revenue decreased by 28.1% in the third quarter, with the majority of revenue coming from sales of electrical equipment. Key markets such as Estonia, Finland, Sweden, and Norway experienced revenue declines, while sales in Estonia saw growth driven by compact substation sales.



Read more at GlobeNewswire:: Harju Elekter Group financial results, 1-9/2024