“I am very satisfied with the development in all areas of the
business in Q4. KDA has reached key milestones and delivered solid project
execution, explaining the very strong margin. KM has succeeded in focusing on
ongoing deliveries while preparing for the integration of Rolls- Royce
Commercial Marine (RRCM). KDI had a challenging start to the year with a weak
order intake. This increased in the second half year, and the area enter 2019
with an order backlog 38 per cent higher than at the same time last year”,
KONGSBERG carried out a successful rights issue related to the
acquisition of RRCM, and has entered into an agreement for the acquisition of
Aerospace Industrial Maintenance Norway AS (AIM).
“Both acquisitions are very important for the realisation of our
strategy, and I am satisfied that the processes are on schedule. It is a huge
vote of confidence that the government and a significant number of the shareholders
choose to subscribe in the rights issue when we ask for support on the
acquisition of RRCM. Also, with the acquisition of AIM we take a considerable step
towards becoming an even stronger maintenance partner for the Norwegian Armed
Forces’ operative needs. This in turn creates new opportunities, among other
within European F-35 maintenance”, says President and Chief Executive Officer,
position within maritime industry
Kongsberg Maritime operating revenues totalled MNOK 2,014 in Q4,
which is 8.7 per cent higher than the same quarter last year. EBITDA was
MNOK 140, affected by MNOK 85 in integration costs related to RRCM.
“KM delivers good underlying results, consolidating its position as
a preferred supplier of complete integrated solutions. The order intake is
good, despite continued challenges in some markets. We are seeing the results of
previous cost measures. The RRCM acquisition will make us an even stronger player
in the global maritime market”, says Håøy.
KM has significantly improved its order intake,
with an increase of more than MNOK 1,500 in 2018 compared to the previous
year. The subsea division had a record year in 2018 with orders totalling more
than MNOK 3,000, including orders for 11 HUGIN Autonomous Underwater
Building a leading Nordic
alliance for defence maintenance
Kongsberg Defence & Aerospace delivered solid project execution
in the quarter. Operating revenues were MNOK 1,898, 12.8 per cent
higher than the same quarter last year.
“The major missile and air defence projects in Malaysia and
Lithuania are up and running, increasing the activity. Protech Systems has
received important orders for the CROWS programme (Common Remotely Operated
Weapon Stations). The increasing delivery rate for the F-35 programme also
influences the results. At the same time, the organisation is working hard to
secure new, major contracts”, says Håøy.
Kongsberg Defence & Aerospace was chosen as the supplier for the
American “Over The Horizon Programme” in 2018. In addition, the business area
was announced as the preferred supplier to Qatar, both for the air defence
system NASAMS (Norwegian Advanced Surface-to-Air Missile System) and an extensive
“This is without doubt of great importance to us and our about 1,500
Norwegian sub-suppliers. We prove once again that we are playing in the international
top league”, says Håøy.
Good 2019 momentum
KONGSBERG started 2018 with an ambition to enable growth, increase
order intake and secure a continued healthy cost development. The company has
established key positions within both the civil and defence sectors, in recent
years. New positions were taken in 2018.
“We are delivering on our goals. The order
intake is up for the year by MNOK 3,144, we deliver on projects and have
control of costs. The strong positions that we have taken give KONGSBERG
excellent momentum as we head into 2019. This year will be about delivering
what we have promised to our customers in all areas, while executing the
largest integration in the corporation’s history, and securing new, major
defence contracts”, says Håøy.
Please visit kongsberg.com/ir for KONGSBERG’s report and presentation for
the forth quarter 2018.
For further information, please
Jan Erik Hoff, Group Vice President Investor Relations, Kongsberg
Gruppen ASA, Tel: (+47) 991 11 916.
Ronny Lie, Group Vice President
Communications, Kongsberg Gruppen ASA, Tel.: (+47) 916 10 798.
KOG) is an international, knowledge-based group delivering high technology
systems and solutions to clients within the oil and gas industry, merchant
marine, defence and aerospace. KONGSBERG has approximately 7 000 employees
located in more than 25 countries and total revenues of NOK 14.4 billion in
2018. Follow us on Twitter: @kongsbergasa.