Eching near Munich, October 25, 2012 – Kontron AG, the globally leading manufacturer of embedded computer technology (ECT), was, like many other internationally active technology companies, particularly in the ECT market, unable to escape the effects of the international debt crisis and the savings policies of public clients: The company posted stable revenues of EUR 131 million, while earnings came in at
EUR –13.3 million. The latter contains one-off effects totaling EUR 12.3 million, largely relating to reorganization and restructuring projects. The earnings improvements stemming from the 2012 restructuring and personnel reductions are set to be over EUR 10 million in 2013. Revenues for the first nine months of the current financial year totaled EUR 401 million (previous year period: EUR 423.5 million), while earnings (EBIT) were posted at EUR -5.3 million for the first three quarters (previous year period: EUR 29.7 million). At EUR 38.4 million, Kontron AG achieved a very strong operating cash flow for the first three quarters of 2012. In the third quarter, the company reported an operating cash flow of EUR 3.1 million despite the one-off effects from restructuring. Incoming orders grew in the third quarter 2012 to EUR 141 million (Q2/12: EUR 126,8 million) and the backlog was rising to EUR 371 million (Q2/12: EUR 362,8 million) which indicate a strong fourth quarter. The volume of the design wins – an indicator for mid term growth – was posted at very good EUR 92 million (previous year quarter: EUR 83 million).
On the back of this, Kontron is anticipating total annual revenues between EUR 540 million and EUR 555 million. In this actual challenging environment Kontron expects continuous earnings pressure.
Kontron is adapting to the changing market environment with the “Shape” optimization program. “Shape” is designed to both focus the business model and optimize the organization and processes. As part of the strategic alignment, existing product lines are being streamlined and one aim is to invest a disproportionately high amount into innovation in strategic business fields.
In an effort to make better use of synergies, Kontron’s vertical markets are to be pooled into four globally responsible business units: Industry, Communication, Military/Aero/Rail and Multimarket. This means that development capacities are to be bundled according to technological aspects and market conditions, increasing the global efficiency further. The aim is to use developed technologies for the widest possible range of applications and in this way satisfy customer requirements more quickly and fully. In addition to the four business units, in “Kontron Ventures”, a division for larger innovation projects is to be established. The aim is to move into profitable market segments at the earliest possible stage.
The first restructuring measures for cost and efficiency optimization have already begun and are being systematically continued as part of SHAPE. With the sale of the Malaysian production site for standard components at the start of 2012 as well as the sale of the aircraft component assembler AP Parpo in Mexico, important steps towards the concentration of the core business have already been made. In addition, the company plans to dissolve one site in North America and Europe respectively and in doing so make the most of synergies created by concentrating activities in larger sites. Moreover, a holding in the Czech Republic is also to be sold. The restructuring measures will be
completed within the first half of 2013.
Tel: 08165/77212, Fax 08165/77222
Für weitere Informationen:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15,
Tel: 089-89 35 633, Fax: 089-89 39 84 29