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Q1 operating profit of MNOK 44

Kongsberg Gruppen (KONGSBERG) earned Q1 operating revenues of MNOK 1577 (MNOK 1526) and an EBITA of MNOK 44, compared with MNOK 57 in 2004. "The Group's operating revenues and operations are on a par with last year's figures, and the net result for Q1 is slightly weaker than in 2004", states CEO Jan Erik Korssjøen.

"At Offshore & Merchant Marine, results have improved and there has been a strong influx of new orders as the segment continues to show progress. The segment earned MNOK 742 (MNOK 656) in operating revenues and an EBITA of MNOK 50 (MNOK 41) in Q1. The segment booked MNOK 951 in new orders, i.e. an increase of more than MNOK 200 in new orders since year-end 2004.

"Defence & Aerospace got off to a slower start this year than in 2004 because the communications segment saw a dip in deliveries in Q1. This will level out as the year progresses. Defence & Aerospace earned operating revenues on a par with last year's, i.e. MNOK 621 (MNOK 627). The result of operations was - MNOK 5, compared with MNOK 6 in the same quarter last year.

"Yachting & Fishery posted operating revenues of MNOK 210 (MNOK 244), and will come out at about NOK 0, compared with MNOK 11 in Q1 2004. We are now in the peak season for the yacht market, and sales in the months ahead will be decisive for the result in this segment. A number of measures are currently being implemented to enhance profitability and make the company more robust", continues Korssjøen.

"Several of KONGSBERG's markets are still very active. We expect a continued high level of activity in the markets for Offshore & Merchant Marine. We enjoy good positions in these markets, providing a sound platform for further growth. Yachting & Fishery markets are in flux. The segment still faces challenges in its highly competitive yachting market. The fishery market's investment level is directly linked to the economy and to the framework conditions for the fishing fleet. Investments vary considerably over time, and the level has been relatively low lately. "In our opinion, the missiles segment will continue to pose a risk for Defence & Aerospace in 2005, while profits are expected to grow in the segments for military communications and weapons control systems." KONGSBERG is expected to earn operating revenues on a par with 2004. "We examine candidates for acquisition and consider other structural changes on an ongoing basis, at the same time as we are continuing to implement cost-cutting measures", states Chief Executive Officer Jan Erik Korssjøen.

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Q1 2005 Report (pdf)

Download investor presentation here (pdf)

For further information, please contact: Chief Executive Officer Jan Erik Korssjøen - telephone: ( 47) 322-89510 - ( 47) 920-60000 Chief Financial Officer Arne Solberg - telephone: ( 47) 322-89575 - ( 47) 920-6001