Strong quarterly performance by KONGSBERG
KONGSBERG has posted record results in Q1 2007. Operating revenues totalled MNOK 1 853 (MNOK 1 683), while operating earnings (EBITA) came to MNOK 155 (MNOK 93). "Our operating profit is up 66.7 per cent from Q1 2006, while our operating revenues have increased by 10.1 per cent. Our operating margins are on the rise and new orders climbed by no less than 87.7 per cent. The foundation has been laid for a large volume of new orders in Q2 as well", states CEO Jan Erik Korssjøen.
"New orders were up in both business areas, and both Defence & Aerospace and Offshore & Merchant Marine had expanding order backlogs. New orders in Q1 totalled MNOK 2 754, compared with MNOK 1 467 in the same quarter of 2006. The backlog of orders at end quarter was MNOK 7 521, up slightly more than NOK 1 billion from year end", continues Korssjøen.
Defence & Aerospace had Q1 operating revenues of MNOK 793 (MNOK 791) and an EBITA of MNOK 43 (MNOK 30). New orders aggregated on MNOK 1 052 (259), and the backlog of orders increased during the quarter by MNOK 480 to MNOK 3 733. Several important contracts were concluded in Q1, including one for hydrographic equipment and systems integration for the Finnish Armed Forces valued at MNOK 180.
"Remote weapons systems are still a strong contributor to revenues and results. We expect several new countries to sign contracts, at the same time as there is significant potential inherent in countries that have already bought our system", explains Korssjøen, adding that a production contract for the Naval Strike Missile (NSM) for the Norwegian Armed Forces is expected to be signed in Q2, but is contingent on positive decisions by the Norwegian government and parliament.
Offshore & Merchant Marine reported Q1 operating revenues of MNOK 1 027 (MNOK 865) and an EBITA of MNOK 111, up MNOK 44 than in same months of last year. The business area has never before posted such a good result as in Q1 this year, when it had an operating margin of 10.8 per cent.
New orders in Q1 added up to no less than MNOK 1 638 (MNOK 1 173), and the backlog of orders at 31 March came to MNOK 3 687. This is in excess of MNOK 600 more than at year end. At Offshore & Merchant Marine, the backlog has increased for the 9th consecutive quarter and has never been higher in this segment.
"Activity remains buoyant in the offshore market, and the strong influx of new orders applies to dynamic positioning systems, process automation and subsea systems. Orders for rigs are expected to stabilise at a more normal level, at the same time as orders for floating production units are expected to increase. The market for commercial vessels, included gas carriers, remains at a stable high level. We expect a continued strong influx of new orders from both these markets", states Korssjøen.
"All in all, we expect operating revenues and the operating margin to be better in 2007 than in 2006", concludes Chief Executive Officer Jan Erik Korssjøen.
The quarterly report is posted at www.kongsberg.com
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