The preliminary results show that all the main business sectors of Eltel continued to perform as planned in 2013.
- Focus on margins – Group sales 0.4% above 2012
- All business sectors show performance improvements
- Constant demand in Infranets – Power sector continues to grow
- Management of overheads will improve results“
Strict focus on performance improvement rather than volume growth in 2013 is bearing fruit and affecting our bottom line positively,” says Axel Hjärne, President and CEO of Eltel Group Corporation. The preliminary results show that all the main business sectors of Eltel continued to perform as planned in 2013. An improvement of financial result over 2012 is expected when the final results is published.
Thanks to a strong fourth quarter, Eltel’s net sales in 2013 exceeded the company’s total net sales for 2012. Sales totalled EUR 1.154 million, an increase of 0.4% compared to the previous year (1.149). The demand for telecom services continued on a stable level, and the electricity sector is clearly showing signs of growth. Eltel’s portfolio of services, consisting of infrastructure investment projects and operations as well as maintenance services, continued to support the company’s good development. The number of employees at the end of 2013 was 8,459 – a 0.4% reduction compared to the previous year (8,495).
Balanced development across sectors – overheads and net working capital improving
“In 2013, we focused on the development of quality and efficiency in our operations. We continued to perform very well on all markets. During the year we signed a number of major project contracts in Power transmission, both in the Nordic countries and Africa. The EUR 37 million contract with Statnett was one of the most important. In Power distribution we completed a very successful smart metering project of 600,000 installations with Fortum in Finland and enjoyed great customer feedback. Eltel also won more outsourcing areas with Vattenfall in Sweden.”
“Eltel merged its Smart metering unit and Power distribution unit during the summer, which helped us to utilize internal synergies more effectively. The merger also strengthens our competitive position and enables us to tender for other major projects, for example in Norway,” says Axel Hjärne, President and CEO of Eltel Group Corporation.
“We are also pleased that our performance improved in the highly competitive Telecom sector. We are also seeing the first returns from new processes and our increased focus on well-defined performance indicators. In the Rail business unit, we entered the Norwegian market with a EUR 20 million contract with Jernbaneverket. In the Homeland Security and Aviation, we signed a new multi-year agreement with the Swedish Aviation Authority. Focus on overheads and management of net working capital has shown good progress in 2013.”
The new year begins with positive expectations
“Eltel experienced a very good year in 2013. With our ongoing frame agreements and signed new project contracts, we are in a good position to meet the challenges of 2014. The level of tendering activity is high, and our competitive position is good. We are also continuing to improve those units that are not yet performing at a desired level, and we are confident that the results of these actions will be seen later in 2014. Finally, we would like to thank our customers for their trust in Eltel in 2013 and our employees who have made all this possible,” concludes Axel Hjärne.
For more information on Eltel Group Corporation, visit www.eltelnetworks.com