Electronics Production | October 26, 2011
Kontron meets revenue and earnings expectations in 3Q
Kontron AG continued to report double-digit growth in the third quarter of the current financial year. Revenue of EUR 148.2 million was up by almost 12 percent on the prior-year period (EUR 132.9 million).
The Group has thereby generated EUR 423.5 million in the first nine months of this financial year, compared with EUR 346.7 million in the previous-year period, representing an approximately 22 percent increase. Emerging markets delivered the strongest growth-drivers in the third quarter in terms of both revenue and earnings, although significant growth rates were also achieved in Europe. By contrast, the North American market reported relatively weak trends, where we are increasingly experiencing postponements to orders that have impacts on both operating earnings and working capital. The order book position continues to be on a high level (EUR 411.3 million). Design wins remain at a good standard with EUR 231.9 million at the end of the third quarter. The third-quarter operating earnings result was burdened by declines in the high-margin infrastructure business, particularly in America. Operating profit (EBIT) nevertheless amounted to EUR 11 million in the third quarter, 36 percent ahead of the prior-year period (EUR 8.1 million). Net income for the quarter stood at EUR 7.2 million (previous year: EUR 5.6 million). As a consequence, Kontron achieved operating earnings of EUR 29.7 million in the first three quarters of the current financial year, and net income of EUR 20.1 million. During the first nine months of the current financial year, the Group has thereby already exceeded the previous year's full-year result (when adjusted to reflect the risk provision for Malaysia in 2010). Earnings per share increased to EUR 0.35 as of September 30, 2011, due to the earnings growth. Operating cash flow was up by EUR 3.7 million in the third quarter (previous year: EUR -1.3 million) to reach a total of EUR 10.4 million during the first nine months (previous-year period: EUR -8.4 million). With a look to the fourth quarter, Kontron AG anticipates a good level of revenue in connection with a more unfavorable margin mix. This is due to postponements as well as potential cancellations, predominantly in the infrastructure area, as a consequence of the increasingly tense financial and economic situation. The Management Board continues to adopt a positive view of the medium- and long-term trend in view of the Group's good level of design wins and continued high order book position.
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