Good performance and strong cash flow in Q2
KONGSBERG has had good operational performance and strong cash flow in Q2 2017. Significant restructuring of the Group’s maritime business area has led to reduced costs, and important positions are being secured for future-oriented solutions and concepts.
The Group is well positioned on the defence side, and the order backlog is expected to increase over the next quarters due to a higher order intake within this area.
KONGSBERG’s operating revenues in Q2 are MNOK 3.733. This is on the same level as Q1, but a 9.5 per cent reduction compared to the same quarter in 2016. The reduction is mainly due to Kongsberg Maritime being down 14.2 per cent compared to Q2 2016. The quarterly EBITDA margin is 5.5 per cent and includes negative one-off effects of MNOK 128.
The quarterly order intake is MNOK 2.535, which gives an order backlog of MNOK 15.308 at the end of the quarter.
“We deliver a quarter with good operations and revenues on par with previous quarters. However, the result is weaker to a large extent due to negative one-off effects. In the last quarters, significant restructuring measures have been made, reducing costs and improving working capital. Our order backlog at the end of the quarter is lower than in recent years, but we expect a higher order intake from the defence areas over the next quarters”, says Geir Håøy, President and CEO of KONGSBERG.
Restructuring and positioning in KM
Kongsberg Maritime increased its operating revenues from Q1 by 11.4 per cent, mainly due to higher activity in the aftermarket and the subsea segment. The 14.2 per cent decrease from Q2 2016 is primarily a result of lower volume of product deliveries to the offshore market.
“We are making considerable efforts to position ourselves and adapt to the current maritime market and the opportunities ahead of us. In the short term, we are working on measures related to cost and working capital to ensure competitiveness, profitability and a positive cash flow. In the longer term, we will continue innovating and restructuring to further strengthen our strategic position for future-oriented solutions and concepts”, says Håøy.
Higher order intake expected within defence
Kongsberg Defence Systems’ operating revenues are 12.7 per cent higher than in the corresponding quarter of 2016. The EBITDA margin is 16.6 per cent. In the first half of the year, all divisions within the business area report revenues on par with or better than the same period last year.
Kongsberg Protech Systems’ revenues are 18.4 per cent down in Q2 2016, primarily because of lower delivery volumes for new weapon stations. The weak result in the business area includes negative one-off effects.
“Our overall performance within the defence areas is good, and the large projects are delivered on schedule. There is considerable international interest in our missiles and air defence systems, and we are well-positioned for major contracts”, 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.