Continued growth in earnings and profits
Kongsberg Gruppen (KONGSBERG) posted Q2 operating revenues of MNOK 1 542 (MNOK 1 401). Earnings before interest and taxes (EBIT) were MNOK 99, i.e. MNOK 50 higher than in Q2 2005. "KONGSBERG is continuing its positive trend from Q1, as both earnings and profits continue to grow", states Chief Executive Officer Jan Erik Korssjøen.
KONGSBERG's mid-year operating revenues came to MNOK 3 203 (MNOK 2 829), and the Group posted an operating profit of MNOK 188 (MNOK 90). The profit per share was NOK 3.74 (NOK 1.67). New orders aggregated MNOK 3 349 (MNOK 3 097), while the backlog of orders at 30 June had a value of MNOK 5 562 (MNOK 5 701).
Offshore & Merchant Marine had a good Q2, with an operating margin of 9.7 per cent. The segment's operating revenues totalled MNOK 862 (MNOK 790) and its EBIT came to MNOK 84 (MNOK 61). New orders valued at MNOK 1 068 (MNOK 909) were booked in Q2. Valued at MNOK 2 673, the backlog of orders set a mid-year record. The comparable figure at mid-year 2005 was MNOK 1 997.
"Offshore & Merchant Marine maintained its buoyant level of activity. Orders for merchant vessels and gas carriers (LNG) remained high. New orders for system deliveries for offshore rigs totalled MNOK 370 in Q2, bringing the YTD total to MNOK 770. KONGSBERG has landed contracts valued at a total of MNOK 870 related to floating rigs since the advent of the rig boom", remarks Korssjøen.
KONGSBERG expects a continued good influx of new orders in 2006 in the offshore market as well as in the market for merchant vessels.
Defence & Aerospace saw growth in both operating revenues and operating profits compared with Q2 2005. Operating revenues were MNOK 614 (MNOK 593) in Q2 and operating earnings came to MNOK 22 (MNOK -9). The segment booked MNOK 769 worth of new orders in Q2 (MNOK 699). The backlog of orders was MNOK 154 higher at 30 June than at 31 March, and totalled MNOK 2 747 (MNOK 3 557).
"In Q2, Defence & Aerospace signed contracts valued at MNOK 426 for remote weapons systems for armoured personnel carriers. We also signed contracts worth MNOK 75 in the area of surveillance, a new target area for KONGSBERG. In addition, the new Naval Strike Missile (NSM) completed two very successful tests in the U.S. and we are currently negotiating with the Norwegian Armed Forces regarding serial production", continues Korssjøen.
New orders for Defence & Aerospace are expected to be higher in 2006 than in 2005.
"On the whole, we expect the consolidated operating revenues and operating margin to be somewhat better in 2006 than last year", concludes Chief Executive Officer Jan Erik Korssjøen.
For further information, please contact:
Chief Executive Officer Jan Erik Korssjøen - telephone: ( 47) 322-89510 / ( 47) 920-60000
Chief Financial Officer Arne Solberg - telephone: ( 47) 322-89575/ ( 47) 920-60011