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Substantial growth, higher backlog and improved results for KONGSBERG

23. October 2009
Walter Qvam, CEO Kongsberg Gruppen
Walter Qvam, CEO Kongsberg Gruppen.

KONGSBERG is continuing its positive trend, posting a Q3 EBITA of MNOK 371, compared with MNOK 331 a year ago. Operating revenues came to MNOK 3 346, up 31 per cent from Q3 in 2008. New orders aggregated some NOK 5 billion during the quarter, compared with NOK 4.2 billion in Q3 2008.

Order situation

"We've had a good influx of new orders and our backlog has grown to NOK 20.7 billion at end quarter. Sales continued to pick up momentum. Along with the effects of the efficiency improvement measures we have introduced, this has improved our results and further enhanced our liquidity situation in Q3. We have strengthened our platform for continued expansion as planned", states CEO Walter Qvam.

The Group has maintained its strong positions and high level of activity in the maritime market. The level of cancellations in the backlog is still low, but we have seen longer project delays at the shipyards. Sales orders increased in the Subsea area, but decreased slightly for Offshore & Marine. After-sales are on the rise.

The Group's position in the F-35 fighter craft programme has been strengthened. A framework agreement with the Northrop Grumman Corporation with a scope of about MNOK 460 was signed in early July, and the first composite parts for the F-35 are in the process of being delivered.

As expected, the US Army placed substantial orders under the framework contract for the CROWS II programme. They added up to a total of some NOK 3 billion during the quarter, meaning the framework contract for NOK 8 billion signed in August 2007 has been almost completely converted to fixed contracts. KONGSBERG's position as the market leader for this type of weapon control systems is reaffirmed, and the Group is well positioned with a view to new programmes.

Equity

KONGSBERG has posted consolidated operating revenues of MNOK 9 935 YTD in 2009, up from MNOK 7 666 in the same months of 2008. The EBITA came to MNOK 903, i.e. MNOK 100 higher than at the same time in 2008. New orders YTD were up by nearly NOK 2.5 billion compared with 2008, i.e. from NOK 11.9 billion to NOK 14.4 billion. Earnings per share came to NOK 1.80 (NOK 0.78) in Q3, bringing the YTD figure to NOK 4.25 (NOK 3.33).

At 30 September, the Group had net cash reserves of MNOK 48, marking an improvement of MNOK 1 320 since 30 June. At the same time, long-term liabilities have been reduced by NOK 1 billion to MNOK 825. At Q3, the Group had an equity ratio of 28.4 per cent, compared with 23.2 per cent at the first half.

KONGSBERG had 5 371 employees at 30 September 2009, an increase of 128 since New Year's.

More details

For further information, please contact:

  • CEO Walter Qvam – telephone: (+47) 322 89510 – (+47) 905 25226
  • CFO Arne Solberg – telephone: (+47) 322 89575 – (+47) 920 60 011