Ad-Hoc: Kontron raises net profit by 56 percent

  • 2006 revenue rises 35 percent to EUR 405 million
  • Operating cash flow almost doubled to EUR 23.4 million
  • Outlook: further significant increase in earnings anticipated for 2007

Eching, Munich, March 28, 2007. In the 2006 financial year just past, Kontron
AG, on a purely organic basis, realized a record rate of growth. The company
generated revenue growth of 35 percent, with a rise to EUR 405 million (2005:
EUR 300.4 million), and a 56 percent increase in net profit to EUR 25.7 million
(2005: EUR 16.5 million). Operating earnings (EBIT) rose from EUR 22.6 million
in 2005 to EUR 32.9 million in 2006. At the same time, operating cash flow
almost doubled compared with the previous year, moving up from EUR 12.1
million to EUR 23.4 million. The cash position increased by EUR 11 million to
over EUR 64 million.

The fourth quarter was particularly strong: the company achieved revenue of
EUR 118.6 million (Q4 2005: EUR 93.4 million), EBIT of EUR 12.2 million (Q4
2005: EUR 8.4 million) and quarterly net profit of EUR 11.1 million (Q4 2005:
EUR 6.1 million). As a consequence, Kontron in the fourth quarter has for the
first time significantly surpassed the 10 percent EBIT margin level.

Kontron attributes the marked profitability improvement primarily to the
successful implementation of the Profit Improvement Program, in particular the
relocation of volume production to the new location in Malaysia. Despite
revenue growth of 35 percent, operating costs in 2006 rose by only 18 percent,
to EUR 98.2 million (2005: EUR 83.2 million). Compared with the leap in
revenue, growth in the number of employees was moderate in 2006, with the
Group total amounting to 2,445 (2005: 2,382).

Kontron AG is forecasting, on a currency adjusted basis, double-digit revenue
growth for 2007 and a significantly higher increase in earnings.

Investor Relations:
Gaby Moldan
Kontron AG
Oskar-von-Miller-Str. 1,
85386 Eching Schloss Fußberg,
Tel: 08165/77212, Fax 08165/77222

For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Am Schlosspark 15,
82131 Gauting
Tel. 089-89 35 633, Fax: 089-89 39 84 29
Email :

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