Kontron AG / Quarter Results
27.04.2009
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Excellent order intake of EUR 123.3 million exceeds revenue
- High order backlog of EUR 306.3 million
- Design wins reach new record level of EUR 116.9 million
- EUR 7.0 million EBIT and EUR 4.9 million of quarterly net earnings
burdened by increased drive to relocate production to Asia
- Operating cash flow rises to EUR 10.1 million
Eching, Munich, April 27, 2009. Despite the further intensification of the
global economic crisis, Kontron AG continued its profitable growth path in
the first quarter of the 2009 financial year, and reported a slight
increase in revenue to EUR 106.6 million compared with the EUR 105.9
million reported in the prior year period. Kontron AG's robust business
developments in the current economic crisis is also reflected in the rise
in its order backlog to EUR 306.3 million (compared with EUR 291.4 million
as of the start of the year), thanks to the good order intake in the first
quarter. In particular, design wins, the most important indicator of medium
and long-term growth, advanced to mark a new historic record level of EUR
116.9 million in the first quarter. This corresponds to growth of 56
percent compared with the prior year period (EUR 75.1 million), and
confirms the rising trend to outsource to embedded computer specialist such
as Kontron in economically difficult periods. Kontron AG's innovative
strength and high degree of diversification, in particular, is having a
sustainably positive effect in vertical markets. Declines in the automation
and infotainment areas were offset by orders from the somewhat more
cyclically independent areas of telecommunications, energy, transportation
and government. In the first months of the year, Kontron AG has already
garnered two large design wins with a total volume of over USD 80 million
and USD 100 million respectively from two major international telecoms
equipment suppliers. The globally leading embedded computer provider will
supply these customers in the future with platforms based on the latest
ATCA technology. The advanced third and fourth generation systems manage
the network infrastructure of existing backbones in a more rapid and
error-tolerant manner. A major order was also won in the transportation
technology area from a European company.
Due to the fact that the 'Program 2011' profit improvement program is being
implemented more rapidly and intensively than originally planned in view of
the continuing global recession, higher restructuring costs arose
particularly in the first quarter. These charges place a burden on
earnings. For example, operating earnings of EUR 7.0 million and net income
for the period of EUR 4.9 million were below the prior year's results (EUR
8.7 million and EUR 6.8 million respectively). The accelerated measures for
the further relocation of production from America and Europe to the more
cost-effective location in Penang, Malaysia, where 60 percent of Kontron's
basis production is already located, had a particular impact. These
investments will nevertheless have a positive effect on Kontron AG's
earnings position in the medium and long term.
Kontron AG enjoys a very solid financial and asset position with an
operating cash flow of EUR 10.1 million (prior-year period: minus EUR 5.3
million), a rise in its cash holdings from EUR 54.2 million at the turn of
the year to currently EUR 58.8 million, and an approximately unchanged and
low level of bank borrowings of around EUR 12.8 million (EUR 11.7 million).
The excellent liquidity position also allows scope for further
shareholder-oriented measures, including potential, fortuitously priced
acquisition opportunities.
Kontron AG's Management Board is assuming that the difficult economic
environment will continue over coming months. The company is expecting a
fall in order intake particularly from the infotainment and automation
areas. By contrast, the areas of telecommunication, medical technology, and
especially infrastructure projects are proving highly stable with the
promise of growth potential. Thanks to Kontron's broad sector
diversification, its presence in all important global markets, and the
ongoing outsourcing trend, the Kontron Management Board is optimistic that
the Group can continue to operate profitably on the markets and gain new
additional market shares.
Investor Relations: For further information:
Gaby Moldan Dr. Udo Nimsdorf
Kontron AG Engel & Zimmermann AG
Oskar-von-Miller-Str. 1, Agentur für Wirtschaftskommunikation
D-85386 Eching Schloss Fußberg, Am Schlosspark 15,
Tel+498165/77212,Fax+498165/77222 D-82131 Gauting
E-mail:Gaby.Moldan@kontron.com Tel.+4989-8935633,Fax:+4989-89398429
Email: info@engel-zimmermann.de
DGAP 27.04.2009
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Language: English
Issuer: Kontron AG
Oskar-von-Miller-Str. 1
85386 Eching
Deutschland
Phone: 08165-77-225
Fax: 08165-77-222
E-mail: martin.przybyla@kontron.com
Internet: www.kontron.com
ISIN: DE0006053952
WKN: 605395
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: Kontron AG raises Q1 2009 revenue to EUR 106.6 million
| Source: EQS Group AG