Good order intake and cash flow in the fourth quarter
In the fourth quarter KONGSBERG has revenues of NOK 3,757 million, 4.9 per cent lower than the same quarter of 2016. The quarter’s EBITDA was NOK 459 million, entailing a margin of 12.2 per cent, an increase from 8.5 per cent compared to the equal quarter of 2016. The order intake for the quarter was NOK 5,015 million, which gives an order backlog of NOK 15,629 million at the end of 2017.
Accumulated for 2017 revenues are NOK 14,490 million, 8.6 per cent lower than 2016. The Group’s defence area has revenues on par with the previous year. The reduction in revenues are mainly due to Kongsberg Maritime and a weak offshore market. The EBITDA margin is 8.8 per cent, compared to 7.7 per cent in 2016.
- 2017 has been a year that can be summed up in three words: adaptation, delivery and positioning. We have carried out major organisational changes in both our civilian and defence related business areas. The focus in this period of restructurings has been to deliver according to the customer’s expectations. In this, we have succeeded. The implemented measures have already had positive effects in the second part of 2017. We have also positioned ourselves towards concrete projects and future oriented technologies that will be important to earnings, especially in the long-run. We anticipate a high intake of new orders, both in the short and long term. Overall, we have built a solid foundation for long-term growth, says President and CEO, Geir Håøy.
NASAMS order ensures strong order intake for Kongsberg Defence & Aerospace
Kongsberg Defence & Aerospace has revenues of NOK 1,683 million, and an EBITDA margin of 14.2 per cent in the fourth quarter. The order intake in the quarter is NOK 3,168 million, including contracts for the air defence system NASAMS with Indonesia and Lithuania valued at NOK 600 million and NOK 1,000 million, respectively. Accumulated for 2017 revenues are NOK 6,333 million and EBITDA margin of 11.1 per cent for the Group’s defence business.
- Kongsberg Defence & Aerospace has had a good year in terms of results, and at the same time we have confirmed several of our strong positions. Air defence systems, missiles, remotely operated weapon systems and command and control systems are examples of areas where we are well positioned for future opportunities, says Håøy.
Strengthened profitability and good order intake in Kongsberg Maritime
In the fourth quarter Kongsberg Maritime has revenues of NOK 1,877 million, an EBITDA margin of 13 per cent and an order intake of NOK 1,693 million. Accumulated for 2017 the business area has revenues of NOK 7,429 million and an EBITDA margin of 8.6 per cent.
- Both the quarter and annual revenues are lower, but the trend of strengthened profitability continues. We have in the last two years been through major organisational changes and capacity adjustments, and the development in Q4 and the second half of the year show clear positive effects of this. Some markets are still challenging, but new organisation and business model has made Kongsberg Maritime more robust and better adapted to the current market situation and expected future development, 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.
KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace. KONGSBERG has 7 000 employees located in more than 25 countries and total revenues of NOK 15.8 billion in 2016. Follow us on Twitter: @kongsbergasa.
This information is subject to disclosure requirements pursuant to §5-12 of the Norwegian Securities Trading Act.