Eching, Munich, October 26, 2009. Despite the ongoing economic recession, Kontron AG achieved revenue of EUR 116 million in the third quarter, thereby exceeding the previous quarter's figure (EUR 111 million) by 4.5 percent. Revenue amounted to EUR 333 million for the first nine months of the financial year, compared with EUR 356 million in the prior-year period. Declines mainly in the industrial automation area continue to burden revenue as a result of weak order intake in the mechanical and plant engineering sector. Although further growth was achieved in less cyclical sectors such as telecommunications, energy, and security, these sectors proved unable to fully compensate for declines in other markets. Operating earnings (EBIT) amounted to EUR 4.8 million in the third quarter. Of particular note in this respect was a one-off negative effect resulting from about a EUR 3 million charge, which reflected import duties levied retrospectively for the last three years due to a tax court ruling. Cumulative EBIT amounted to EUR 19.8 million in the first three quarters, compared with EUR 34.0 million in the prior-year period. The decline is firstly attributable to business in emerging markets, where margins were weaker, primarily due to currency exchange factors, and secondly to costs for the accelerated Profit Improvement Program. Although a significant improvement was achieved with operating and production costs of EUR 99.7 million in the first nine months compared with the same period of the previous year (EUR 107 million), this has not yet fed through to a significant improvement in earnings. Third-quarter net income amounted to EUR 3.1 million. As a result, net income in the January to September period totaled EUR 13.7 million (prior year period: EUR 25.4 million). There was a gratifying trend in operating cash flow. It amounted to EUR 10.5 million in the third quarter, thereby climbing to EUR 17.9 million in the first nine months compared with EUR 12.6 million in the prior-year period. The cash position totaled EUR 80.3 million compared with EUR 41.9 million at the end of the second quarter, and EUR 52.3 million in the same period of the previous year. This progress is primarily attributable to the capital increase performed at the end of July, whereby new ordinary shares were issued, for which the Warburg Pincus Group subscribed.
Kontron AG aims to continue to use its sound financial cushion to make strategic acquisitions in the future that lend long-term strength to the company's product portfolio and global presence.
The order book of EUR 315 million at the end of September represented a new all-time high compared with the second quarter (EUR 301 million), as well as compared with the prior-year period (EUR 299 million). There was also a further increase in the design wins that are important for generating our forecasts: they amounted to EUR 90.4 million in the third quarter, thereby bringing the total for the first nine months to EUR 287 million. This represents year-on-year growth of 19 percent. For this reason, the Executive Board of Kontron anticipates a significant increase in both revenue and earnings in the traditionally strong fourth quarter. The Kontron Executive Board is assuming that it will achieve the revenue and earnings targets it set for 2009, and that it will return to stronger growth as from 2010.
85386 Eching ,
Tel: 08165/77212, Fax 08165/77222
For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Am Schlosspark 15,
Tel. 089-89 35 633, Fax: 089-89 39 84 29