The net sales of Viisnurk AS for the second quarter of 2002 were 94 mil. kroons (6 mil. euros) and net profit was 4.8 mil. Kroons (0.31 mil. euros). As compared to the second quarter of the previous year, the net sales of the company increased by 21.3% and net profit almost halved. During the first half of the accounting year, Viisnurk exposed the profit of 3.7 mil. kroons (0.24 mil. euros) at the net sales of 175.8 mil. Kroons (11.2 mil. euros). In 2001, the net sales were 143.6 mil. kroons (9.2 mil. euros) and the profit 18.5 mil. kroons 1.18 mil. euros) respectively. The economic results of Viisnurk for the first half-year were influenced most by the loss produced by the Wood Panel Factory and the low demand on the major export markets.
The economic results of the company were influenced by the following factors:
- The Wood Panel Factory, which was launched last year, exposed the loss of 2.5 mil. kroons (0.16 mil. euros) at the net sales of 12.1 mil. kroons (0.77 mil. euros) in the 2nd quarter. As compared to the previous quarter, the net sales of the factory increased by 13.2% and the loss decreased by approximately 2 mil. kroons (0.13 mil. euros). The total net sales for the first half-year amounted to 22.7 mil. kroons (1.45 mil. euros) and the total loss to 7 mil. kroons (0.45 mil. euros). Lack of qualified work force at the Wood Panel Factory constituted the hindrance in gaining positive economic results besides; the operation of the factory was influenced by difficulties on the European furniture industry, thus complicating procurement of suitable orders.
- The net sales of the Furniture Factory in the first half of 2002 amounted to 88.9 mil. kroons (5.68 mil. euros), soaring by 16% on the same period of the previous year (incl. 11,6% in the 2nd quarter). The operating profit of the factory amounted to 12 mil. kroons (0.77 mil. euros) in the first half-year, which is approximately 10% less than the year before. The profitability of the Furniture Factory was 13.6% for the 2nd quarter; showing an improvement as compared to the previous quarter.
- The net sales of the Sports Goods Division for the first half-year amounted to 20.6 mil. kroons (1.32 mil. euros), which is 28.7% more than that of the last year. The economic activities of the division resulted in the loss of 2.1 mil. kroons (0.13 mil. euros). During the 2nd quarter, the most important contracts concerning the sale of skis and hockey sticks for the next season were concluded by the Sports Goods Division. Pursuant the agreements, the production of the skis will remain at the same level as the year before, whereas the average price for the sold skis will decrease by approximately 10% owing to sagging demand. The estimated output of hockey sticks will exceed that of the previous year by ca 40%.
- The Softboard Factory exposed the profit of 9 mil. kroons (0.58 mil. euros) at the net sales of 39.7 mil. kroons (2.54 mil. euros) for the first half of the year. As compared to the previous year, the net sales of the factory increased by 5% and the profit decreased by 27%. The profitability of the factory improved in the 2nd quarter as compared to the 1st one, however, the decline on target markets as well as the increase of the price of such factors of production as electricity and wood chips, hindered us to achieve the level of the preceding year.
To provide continuous growth in profitability, Viisnurk AS continues to focus its activities on upgrading first and foremost in furniture production.
INCOME STATEMENT
In th kroons In th kroons In th euros In th euros
II quarter II quarter II quarter II quarter
2002 2001 2002 2001
NET SALES 93 997 77 509 6 007 4 954
Cost of goods sold (78 939) (58 312) (5 045) (3 727)
Gross profit 15 058 19 197 962 1 227
Marketing expenses (5 003) (4 167) (320) (266)
General admin. expenses (2 497) (2 218) (160) (142)
Other income 262 233 17 15
Other expenses (407) (751) (25) (48)
Profit from operations 7 413 12 294 474 786
Financial income 7 288 19
Financial expenses (2 580) (2 637) (165) (169)
NET PROFIT 4 840 9 945 309 636
Basic earnings per share 1,08 2,21 0,07 0,14
Diluted earnings per 1,08 2,21 0,07 0,14
share
In th kroons In th kroons In th euros In th euros
6 months 6 months 6 months 6 months
2002 2001 2002 2001
NET SALES 175 787 143 647 11 235 9 181
Cost of goods sold (151 873) (108 429) (9 706) (6 930)
Gross profit 23 914 35 218 1 529 2 251
Marketing expenses (9 633) (8 761) (616) (560)
General admin. expenses (4 993) (4 925) (319) (315)
Other income 513 1 168 33 75
Other expenses (988) (1 025) (64) (67)
Profit from operations 8 813 21 675 563 1 384
Financial income 34 316 3 21
Financial expenses (5 103) (3 479) (327) (222)
NET PROFIT 3 744 18 512 239 1 183
Basic earnings per share 0,83 4,11 0,05 0,26
Diluted earnings per 0,83 4,11 0,05 0,26
share
BALANCE SHEET
In th kroons In th kroons In th euros In th euros
30.6.2002 31.12.2001 30.6.2002 31.12.2001
Cash and bank 630 5 036 40 322
Customer receivables 54 458 52 496 3 480 3 355
Other receivables 1 960 2 215 125 142
Prepaid expenses 5 653 5 449 361 348
Inventories 91 540 74 576 5 851 4 765
Total current assets 154 241 139 772 9 857 8 932
Long-term fin. 1 436 1 436 92 92
investments
Tangible assets 216 301 216 043 13 824 13 808
Intangible assets 479 269 31 17
Total non-current assets 218 216 217 748 13 947 13 917
TOTAL ASSETS 372 457 357 520 23 804 22 849
Debt obligations 45 855 47 368 2 931 3 027
Customer prepayments 80 1 216 5 78
Supplier payables 44 034 36 793 2 814 2 351
Taxes payable 6 710 5 639 429 360
Accrued expenses 11 457 8 348 732 534
Total current 108 136 99 364 6 911 6 350
liabilities
Long-term liabilities 97 900 95 479 6 257 6 102
Total non-current 97 900 95 479 6 257 6 102
liabil.
Share capital at par 44 991 44 991 2 875 2 875
value
Share premium 11 332 11 332 724 724
Mandatory capital 4 499 4 499 288 288
reserve
Retained earnings 101 855 82 472 6 510 5 271
Net profit for the year 3 744 19 383 239 1 239
Total equity 166 421 162 677 10 636 10 397
TOTAL LIABILITIES 372 457 357 520 23 804 22 849
AND EQUITY
Andrus Aljas
CFO
044 78 355