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Elcoteq Issues 9-Month Report

LUXEMBOURG — Improvement in operating profitability, cash flow clearly positive, net debt significantly reduced and actions to strengthen balance sheet proceeding

July – September

– Net sales EUR 250.7 million (EUR 331.7 million in July – September 2009)
– Operating income excluding restructuring costs EUR 1.3 million (-1.6)
– Operating loss EUR -2.5 million (-3.3).
– Loss before taxes EUR -16.8 million (-7.5)
– Earnings per share (EPS) EUR -0.57 (-0.19)
– Cash flow after investing activities EUR 47.9 million (42.7)
– Rolling 12-month return on capital employed (ROCE) 15.5% (-14.4%)

January – September

– Net sales EUR 803.6 million (EUR 1,237.7 million in January – September 2009)
– Operating loss excluding restructuring costs EUR -12.4 million (-37.4)
– Operating loss EUR -22.3 million (-53.1).
– Profit before taxes EUR 44.5 million (-80.8)
– Earnings per share (EPS) EUR 0.44 (-2.26)
– Cash flow after investing activities EUR 29.9 million (64.2)
– Interest-bearing net debt EUR 23.0 million (173.2)
– Gearing 0.2 (2.6)
– Solvency 18.6% (9.7%)


Fourth-quarter net sales are expected to be on the level of the third quarter. Operating income is expected to further improve from the third quarter. The changes in the business volumes have caused need for slightly higher restructuring costs than originally anticipated in both Q3 and Q4 in 2010. The company expects the operating profit excluding restructuring costs to turn positive for the second half of 2010. Due to the restructuring of subordinated debt, the net income for 2010 will be clearly positive.

The company earlier estimated the operating profit to turn positive for the second half of 2010 based on the impact of implemented cost reduction actions, the stabilization of underlying business and the contribution of recently won new customer contracts.

This interim report has been prepared in accordance with IFRS. Tables have been prepared in compliance with the IAS 34 requirements approved by the EU. The comparative figures given in the body text of this report are figures for the corresponding period in the previous year, unless stated otherwise.

{complink 1744|Elcoteq Network Corp.}

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