Eltel continues strong performance in the first half of 2012

Group sales grew by 20 % - Customer trust at high level - Positive development expected to continue

“Our performance for the first half of 2012 has continued very strong. Order volumes both in electricity and telecommunication businesses have been at a very high level compared with both 2011 and our plan for 2012,” says Axel Hjärne, President and CEO of Eltel Group Corporation.

The uncertainties in the world financial markets have not had much impact so far on the service sectors where Eltel operates. Eltel’s net sales increased by 20 % compared with the first half year of 2011, and totaled EUR 525,3 million (438,1). The growth in net sales was achieved organically with positive contributions from most areas and geographies of the Group. The number of employees at the end of June 2012 was 8610 – an 8 % increase from June 2011.

Demand for Eltel’s services remains high

“We are very happy how 2012 is progressing. The year started with heavy storms in the Nordic countries causing serious damages to power distribution and telecommunications. Our teams with experience, good attitude and excellent collaboration with customers were once again able to show the value of our services to restore the supply of these critical services. In terms of new contracts we started the first projects to build overhead lines for National Grid in the UK and also continued to book other major contracts with grid companies in Finland, Poland and Africa. Our frame agreements both with power distribution and telecom operators run at high volumes,” says Axel Hjärne, President and CEO of Eltel Group Corporation.

“Eltel continues to implement its business plans with a goal to be the leading Infranet company in Europe. At the same time we have strengthened our financial position in managing cash and net working capital. The recent change to complete reorganization of our businesses in six specialized units has gone well and is already showing the first positive results.”

Positive development expected to continue

“The internal focus on utilizing Eltel best practice will continue. By deploying our full knowledge and specialized processes we create customer value and improve employee satisfaction with their own work. Focus on H&S will be highlighted also during the rest of 2012. We expect the business volumes to be strong also for the second half of the year and aim to maintain the cash and earnings generation at a good level,” concludes Axel Hjärne.

For more information:
Axel Hjärne , President and CEO
Tel. +46 70 548 8432, E: axel.hjärne@eltelnetworks.com

Hannu Tynkkynen, Senior Vice President
Tel: +358 40 311 4503, E: hannu.tynkkynen@eltelnetworks.com