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Electronics Production | March 31, 2008

Kontron revenue grows to €447 million

In the 2007 financial year Kontron continued its profitable growth and increased total revenue from €405 million to €447 million.
This corresponds to a nominal increase of 10%; when adjusted for currency losses resulting from the weak US dollar, the increase was even as high as 15%, and stands at 18% taking the disposal of the mobile product area in the United States into account. Operating earnings (EBIT) were up 41%, rising from €32.9 million to €46.3 million. Net income for the year was €32.6 million, compared with €25.7 million in the previous year. Earnings per share (diluted) rose to 60 cents compared with 46 cents in the previous year, representing an increase of over 30%.

The company's high rate of growth is particularly reflected in the order book: this amounted to €268 million at the end of 2007, 20% higher than the previous year's record level (€220 million). In overall terms, Kontron further improved net cash position increased to €70.7 million, compared with €28.5 million on the previous year. Operating cash flow rose to €28.5 million, as compared with €23.4 million in 2006. Given total equity and liabilities of €382 million (previous year: €363 million), the equity ratio increased to 75.4% compared with 69.4% in 2006.

Compared with the company's rate of business growth, the workforce grew only moderately, to 2,567 employees (previous year: 2,445).

Following consistent growth in the first nine months of 2007, Kontron reported a major increase in revenue: €95.6 million in Q1, €111 million in Q2, €115 million in Q3 and €124 million in Q4.

As a forward-looking step, Kontron launched a reorganization of sales structures in Asia in Q4 with the aim of achieving higher EBIT margins in the region: all sales structures were bought out of 66.0%-owned Kontron Asia, Taipei, which has so far been responsible for both sales and production and placed under the direct control of the Kontron parent company.

Consequently, Kontron has enjoyed 100% control of its sales companies in China since January 2008, as well as 90% control of its company in Australia. In Japan, the 18.5% stake in Kontron Technology Japan was acquired from Kontron Asia. The sales office in Korea was also placed under the control of Kontron.

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