HELSINKI, Oct. 27 -- EMS firm Elecoteq said third-quarter sales rose 67% to 828.7 million euros and operating income spiked too, led by demand in Europe and the Asia-Pacific.

For the September quarter operating income was 20 million euros, up from 6.6 million euros last year, aided by a one-time value-added tax refund of 2.3 million euros.

For the past year return on capital employed was 21.3%.

Year to date net sales are up 38%, to 2.1 million euros, and operating income is 50.6 million euros, up from 13.6 million euros.

In a press statement, Eloteq said production was strong in its terminal products business, especially in Europe. Terminal products includes handsets and accounts for 80% of the company's overall sales. However, profitability was weakened by production problems in its communication network equipment business, a problem Elcoteq says will be "largely rectified" during the current quarter.

During the third quarter Elcoteq added staff in Estonia, Hungary and Mexico and now has nearly 3,400 more employees in those areas than this time last year.

Elcoteq guided for Q4 net sales and operating income from business operations to be on par with the third quarter.

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