Yet another good year for KONGSBERG

Chief Executive Officer Jan Erik Korssjøen

KONGSBERG posted operating revenue of MNOK 6 720 (MNOK 5 791) and an operating profit (EBITA) of MNOK 464 (MNOK 378) in 2006. "We have increased our operating revenue by 16 per cent and our profitability by 22.8 per cent from 2005 to 2006. KONGSBERG's preliminary results for 2006 show earnings per share (EPS) of NOK 8.30 (NOK 7.19), and the Board proposes a dividend of NOK 2.50 (2.15) for the year. We are progressing nicely", remarks Chief Executive Officer Jan Erik Korssjøen.

New orders came to NOK 7.6 billion in 2006, up NOK 2 billion on the year. The strong influx of new orders has also resulted in a growing backlog of orders. At year end, the backlog was valued at MNOK 6 472, about NOK 1 billion more than at year-end 2005. KONGSBERG had 3650 employees at year end, an increase of 278 in 2006.

The Group earned Q4 operating revenue of MNOK 2 068 (MNOK 1 471) and an EBITA of MNOK 132 (MNOK 125). New orders were high in Q4, MNOK 2 462, compared with MNOK 1 242 in 2005. Bonus provisions for managers and other employees were charged against operating profits in Q4. Excluding these provisions, the Q4 2006 operating margin was about the same as in Q4 2005.

Defence & Aerospace reported operating revenue of MNOK 2 997 (MNOK 2 650) and an EBITA of MNOK 182 (MNOK 135) in Q4. The business area won important new orders towards year end, booking more than NOK 1 billion in December alone. Weapon Control Systems contributed significantly to 2006 revenues and results. In Q4, the division booked new orders valued at MNOK 538, bringing the figure to more than NOK 1.1 billion for the year. Defence Communications also showed a pronounced improvement from 2005.

"2007 began very favourably with two successful tests of the new NSM. We also signed framework agreements with Lockheed Martin and Northrop Grumman to produce composite for the JSF fighter craft in the event Norway chooses that option to supersede today's F-16s", continues Korssjøen.

Offshore & Merchant Marine increased its operating revenue and EBIT in all four quarters of 2006 compared with 2005, and all divisions turned in better performances. New orders exceeded NOK 1 billion in every quarter of 2006. In fact, new orders for dynamic positioning alone added up to more than NOK 1.2 billion. The business area booked operating revenue of MNOK 3 553 (MNOK 3 034) and an operating profit (EBITA) of MNOK 329 (MNOK 262) in 2006.

"Activities are still burgeoning in the offshore market, and we won contracts for a total of 29 rigs last year. The market for commercial vessels, including gas carriers, remains at a stable high level. Offshore & Merchant Marine also had a very good influx of new orders in 2006. The backlog has now expanded steadily for eight consecutive quarters. At year end, it reached a record-high MNOK 3 054", adds the CEO.

"All in all, we expect operating revenue and the operating margin to be better in 2007 than in 2006", concludes Chief Executive Officer Jan Erik Korssjøen.