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KONGSBERG posts Q1 profit of MNOK 260

27. April 2009
Walter Qvam, CEO Kongsberg Gruppen
Walter Qvam, CEO Kongsberg Gruppen.

KONGSBERG continued growing in Q1, with an EBITA of MNOK 260 (MNOK 195) on operating revenues of MNOK 3 330 (MNOK 2 353). The backlog at end-quarter was valued at MNOK 16 508, i.e. about the same level as at year end. "We're pleased with the Q1 results", says CEO Walter Qvam.

Operating revenues and the operating profit improved by 42 and 33 per cent, respectively, in Q1 2009, compared with Q1 2008. The operating margin declined somewhat, from 8.3 per cent in Q1 2008 to 7.8 per cent in Q1 2009. Earnings per share came to NOK 4.80 (NOK 4.17).

1st quarter 2009

Order situation

Kongsberg Maritime saw a strong influx of orders in a market coloured by uncertainty and a dry up in the flow of orders to shipyards. Kongsberg Defence Systems* and Kongsberg Protech Systems* also had a satisfactory influx of orders. New orders for the Group totalled MNOK 3 395 (MNOK 3 954) in Q1. At 31 March, the backlog totalled MNOK 16 508 (MNOK 14 247), compared with MNOK 16 692 at year end.

"KONGSBERG has strong market positions, even though parts of the market are turbulent due to the international financial crisis. It is still hard to tell how the Group's markets will develop in the latter half of 2009, so we are following the situation closely. We have implemented several cost-cutting measures, in addition to an efficiency improvement programme throughout the Group. We consider the need for adjustments continuously", comments Qvam.

Equity

Consolidated equity was MNOK 2 651 at the end of Q1. This corresponds to an equity ratio of 21.1 per cent, up from 15.2 per cent at year end. The increase is primarily due to an increase since year-end 2008 of MNOK 633 (after tax) in the value of the forward foreign exchange contracts used to hedge future orders. This increase has been recognised directly to equity. At 31 March 2009, the Group had net interest-bearing debt of MNOK 1 281, down MNOK 158 from 31 December 2008.

In Q1, the Group issued a new bond loan for MNOK 500 with a five-year term to maturity. This loan will be used to pay down a current bond loan for MNOK 400 that falls due in June 2009. KONGSBERG also has an undrawn credit facility of MNOK 800 that extends until December 2010.

At 31 March, KONGSBERG had 5 284 employees, an increase of 41 individuals during the quarter.

* KONGSBERG will be reporting on three business areas as from Q1 2009: Kongsberg Maritime, Kongsberg Defence Systems and Kongsberg Protech Systems.

More details

See the quarterly report for more details. This press release is also posted on www.kongsberg.com and www.newsweb.no

For further information, please contact:

  • CEO Walter Qvam - telephone: ( 47) 322 89510 - ( 47) 905 25 226
  • CFO Arne Solberg - telephone: ( 47) 322 89575 - ( 47) 920 60 011