TALLINN, Jan 21 (Reuters) - Estonian auto parts maker Norma posted a 34-percent drop in 2003 net profit to 8.2 million euros on Wednesday due to a steep fall in Russian sales, in line with analysts' expectations.
Norma, which supplies safety belts and other car components, said in an unaudited results statement that sales to its main market Russia dropped 21.4 percent in 2003 from the year before, but added that sales to western customers grew by 18 percent.
Henno Viires, a broker with Lohmus, Haavel and Viisemann, said the sharp drop in net profit was in line with forecasts, but added that the slim 1.4 percent slide in net sales was a positive sign ahead of Estonia's EU entry in May.
"Estonia's accession to the European Union will improve Norma's competitive position on the Ruissian market considerably as the double tariffs imposed on Estonia by Russia will disappear," he said. "Overall, I think the difficult times for Norma should be over."
At 0855 GMT, Norma shares traded up 1.21 percent at 6.70 euros a share in slim turnover.
Norma saw net sales of 63.9 million euros in 2003 for a pre-tax profit of 8.4 million euros, down from 12.6 million in 2002.
Its 2003 earnings per share was 0.63 euros, down from 0.94 euros in the previous year.
Norma is 51-percent owned by Swedish-based Autoliv , the world's leading maker of car seat belts and airbags.
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