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Positive third quarter

Kongsberg Gruppen (KONGSBERG) reports a Q3 EBITA of MNOK 92 (MNOK 93), while its operating revenues come to MNOK 1 411 (MNOK 1 307). "As expected, Q3 was on a par with last year for us. We still anticipate that the result of operations for the year will approach the level for 2003, excluding additional costs related to NSM development", states Chief Executive Officer Jan Erik Korssjøen.

KONGSBERG's reports a year-to-date operating profit of MNOK 67 (MNOK 232) and operating revenues of MNOK 4 412, compared with MNOK 4 625 in 2003.

"The Q3 results show that KONGSBERG is right on track in terms of operations. Maritime continues to have a good influx of new orders, NOK 3 billion in Q3, which is a 16 per cent increase from last year. And we recently had a query from the Norwegian Navy about a delivery contract for the new Naval Strike Missile (NSM) that is currently under development", adds Korssjøen.

The Group received a bid for all its maritime activities in August, but the Board rejected it.

"Not only is there a good influx of new orders in Maritime, but operating revenues are up MNOK 188 from last year", explains the CEO. The market for hydroacoustics products is also showing signs of improvement, and a contract has been signed for the delivery of a Hugin autonomous underwater vehicle to the Dutch company Fugro. Price pressures are still affecting profit margins at SIMRAD, but sales to the boatbuilding market have picked up and a framework agreement has been signed with Azimut, the big Italian yacht shipyard. Investment levels remain low in the fisheries sector.

"Defence & Aerospace is lagging behind last year's performance in terms of sales, profits and new orders. The lack of orders in the Missiles area is the main reason for the differences. However, as mentioned, we have received a query from the Navy about a delivery contract for the NSM. Moreover, two contracts worth a total of MNOK 182 have been signed in the field of military communications, as has an exciting development contract for a new anti-aircraft system for the USA in conjunction with Raytheon", reports Korssjøen.

The Q3 EBT (earnings before tax) was MNOK -40, compared with MNOK 103 in 2003. KONGSBERG's overall backlog of orders at the end of Q3 2004 was valued at MNOK 5 887, compared with MNOK 5 913 at 31 December 2003. The Group's total assets aggregated MNOK 5 862 (MNOK 5 840), while equity amounted to MNOK 1 797 (MNOK 1 821) or 31 per cent (31 per cent).

Q3 2004 Report (pdf)

For further information, please contact:
CEO Jan Erik Korssjøen, telephone: 47 32 28 95 10 - 47 920 60 000 CFO Arne Solberg, telephone: 47 32 28 95 75 - 47 920 60 011

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