• Orders booked in the first nine months amount to 1.345,8 MHRK, which is up 33 percent compared to the same period last year.
• Net Sales amounting to 1.044,2 MHRK are down 2,7 percent compared to the same period of 2003.
• Operating costs down compared to the same period 2003, as a result of lower provisions for doubtfull receivables, higher collection and continued efficiency program.
• Operating income amounts to 152 MHRK, which is up 21,7 percent compared to the result achieved in the first nine months last year.
• Financial income is lower compared with the income in the same period last year and it totals 8,4 MHRK.
• Income (profit) before taxes amounts to 165,7 MHRK, which is up 16 percent compared with the income before taxes in the same period last year.
• Net income amounts to 132,6 MHRK.
• Cash flow from operating activities is positive and it amounts to 178 MHRK.

The main features of the Ericsson Nikola Tesla operations in the first nine months of 2004 are stability and growth. Ericsson Nikola Tesla accomplished in the first three quarters of the year all planned objectives, and some business indicators exceed the expectations.

 

Orders booked are up compared with the results in the first nine months of 2003, as a result of many contracts concluded in the countries of the former Soviet Union, for instance in Russia, Belarus and Kazakhstan. Net sales are lower than in the same period last year, but still above the planned level. Operating income is up compared with the same period last year and this is to be attributed mainly to the higher awareness of the necessity of better cost efficiency and better collection of prior written-of receivables. Due to the negative effects of exchange rate changes the financial income is down compared with the financial income achieved in the corresponding period last year. As a significant exporter of communication solutions, services and systems Ericsson Nikola Tesla has to include in its operations the risk of exchange rate changes. Cash flow from operating activities accomplished till the end of September this year is positive and amounts to 178 MHRK.

 

According to the net sales the most significant markets are Croatia and Russia. Compared to the same period last year a considerable increase in sales was effected in the markets of Bosnia and Herzegovina, Sudan and Moldova.

 

The company plans to invest considerable cash amount into business development, especially in new markets (for instance, Africa). Curently a high amount of risk is connected with these markets but considering a low penetration grade of communication services extensive possibilities are open related to the improvement of telecom infrastructure and consequently there are many opportunities for new business. The company also plans investments into new technologies, such as 3G systems, services and solutions and in research and development programs.

 

Company Communication Ericsson Nikola Tesla