Current topicsFinancial Period 2007
Ensto Group’s net turnover for 2007 totalled EUR 232.7 million showing an increase of 11,3% from 2006. All strategic business units and market areas contributed to the growth. Major decisions on investments will be taken in order to support the growth.
The 50 years old Finnish family business is still strongly a Nordic company although operating already in 17 countries. Last year, Finland accounted for 35 % of the turnover. The strongest growth is sought especially in Russia, hence an assembly factory together with a logistics centre was set up in St. Petersburg. The demand is expected to grow heavier in Russia than in the rest of Europe.
Operating profit improved according to plans excluding the individual cost regarding replacements of certain switch models due to possible malfunction. The malfunction is estimated to be possible in less than two per cent of the switches in question. The cost for the replacement operation has been estimated to be EUR 4.3M. Operating profit for 2007 stood at EUR 14M.
Bigger investments than in years
Ensto decided on investments of EUR 9 M during the financial period which is 1.4 M€ more than the previous year. In addition to production investments mainly in Finland, the company invested approximately EUR 2M in offices. In production, it was decided to invest on a new heating line (EUR 2.5 M) and new equipment for the preparation of aluminium and brass components in overhead line and underground cable accessories (EUR 2M).
Product development investments were EUR 0.5 higher than the previous year and focused on e.g. the Cubostics manufacturing concept for customised enclosures. Also new personnel has been recruited in product development.
Russia – the land of opportunities
The market and demand situation is expected to remain on the same level as in 2007. However, the second half of this year might include some factors of insecurity. Both turnover and operating profit are expect to grow according to higher market shares. Moderate growth is forecast in all market areas except for Russia and other CIS countries where growth is expected to be strong.
Additional Information:
Jukka Koskinen, President and CEO, Ensto Group, tel. +358 204 76 2204