A challenging quarter for KONGSBERG
KONGSBERG has revenues of MNOK 3,428 and an EBITDA of minus MNOK 40 in Q3, compared to MNOK 4,009 and MNOK 419 in the same quarter in 2015. The weak result is mainly due to significant write-downs and restructuring costs of MNOK 399 in Kongsberg Maritime, together with further decline in the oil and offshore-related activities.
Compared to Q3 in 2015, the Group has had a 14 per cent decrease in turnover. The EBITDA margin adjusted for write-downs and restructuring costs is 10,5 percent. The quarterly order intake is MNOK 4,067, which gives an order backlog of MNOK 17,858 at the end of Q3.
“We see that the oil and offshore market is still challenging, and this has a considerable impact on the Group’s quarterly performance. The defence areas are steady going and at the same level as last year. Our order intake has been good, and, despite the write-downs in KM’s backlog, we maintain an overall solid order backlog”, says President and Chief Executive Officer in KONGSBERG, Geir Håøy.
Q3 2016 REPORT
Q3 2016 PRESENTATION
LIVE WEBCAST FROM Q3 PRESENTATION
Downfall in the market and impairments in Kongsberg Maritime
Kongsberg Maritime had a turnover of MNOK 1,849, a decrease of 26 per cent compared to the same quarter in 2015. The business area reported a loss of MNOK 255. The weakening compared to Q3 in 2015 is mainly due to write-down of inventory, currency hedges and other items with MNOK 354, together with restructuring costs of MNOK 45 in the offshore business. In addition to the challenging offshore market, there is somewhat lower activity within the merchant marine segment.
“We are experiencing, like many others in this market, challenging times. Kongsberg Maritime is late cyclical and has maintained a high activity level in a weakened market. However, the market slowdown is now affecting us to an increasing extent. The quarterly order intake is reduced. The business area is making significant capacity and cost adjustments and the cost base will be considerably lower in 2017, says Håøy.
A good quarter for the defence segments
Kongsberg Defence Systems is on level with the corresponding quarter in 2015, with a turnover of MNOK 897 and an EBITDA margin of 18.8 per cent. The share of net income from Patria in the quarter was MNOK 20.
Kongsberg Protech Systems has a turnover of MNOK 506 and an EBITDA margin of 4.7 per cent. The increase from Q3 in 2015 is mainly due to more deliveries of new systems.
“The defence segments have good project execution, and are continuing working to exploit the considerable opportunities we see ahead of us in several core segments. The quarterly order intake is good for both business areas”, says Håøy.
For further information, please contact:
Jan Erik Hoff, Group Vice President Investor Relations, Kongsberg Gruppen ASA, Tel: + 47 991 11 916.
Ronny Lie, Chief Communications Officer, Kongsberg Gruppen ASA, Tel: + 47 916 10 798.
KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based corporation that supplies high-technology systems and solutions to customers in the oil and gas industry, the merchant marine, and the defence and aerospace industries. KONGSBERG has 7,300 employees located in more than 25 countries and revenues of NOK 17.0 billion in 2015. Follow us on Twitter: @kongsbergasa.
This information is subject to disclosure pursuant to §5-12 of the Securities Trading Act.