Kontron S&T AG
Kontron AG: Kontron AG: Demand remains weak – annual guidance withdrawn
DGAP-News: Kontron AG / Key word(s): Half Year Results Kontron AG: Demand remains weak – annual guidance withdrawn – Revenue 90.9 Mio. EUR (-16.2 % to 2Q15: 108.5 Mio. EUR) – Order intake 104.6 Mio. EUR (+4.5 % to 2Q15: 100.1 Mio. EUR). Backlog 270.2 Mio. EUR (-16.2% to 2Q15: 322.5 Mio. EUR) – Gross margin reflects weak revenue and write offs: 18.6 %, below target 25 % – Impairment Test provides correctional amount of 60.9 Mio. EUR on goodwill as well as 6.0 Mio. EUR on fixed assets – EBIT adjusted by restructuring cost, one time cost and write offs based on impairment test Augsburg, July 25, 2016 – Kontron AG, a global leader in embedded computing technology, has missed the customary seasonal second quarter revenue recovery and therefore withdrew the guidance for the total year. Result of the second Quarter is only slightly above first Quarter Revenues for the second quarter were only slightly higher than in the first quarter of 2016. Compared to the second quarter of 2015, they were down 16.2 % from EUR 108.5 million to EUR 90.9 million. Order intake, at EUR 104.6 million, boosted by our Avionics / Transportation / Defense (ATD) business unit, was, by contrast, 4.5 % higher than in the comparative quarter of 2015 (EUR 100.1 million). Order backlog came to EUR 270.2 million at the end of the second quarter of 2016. This represents a 16.2 % decline on the figure seen as of June 30, 2015 (EUR 322.4 million). Revenue weakness is visible in all three business units: ATD revenues came to EUR 22.7 million in the second quarter, following EUR 28.9 million in the comparative period of the prior year, a 21.4 % decrease. Communication closed the quarter with revenues of EUR 22.3 million, also below the level of the comparable quarter of the prior year. The development of Industrial was also negative, with revenues falling by 14.0 % to Our gross margin for the second quarter reflects the general decline in revenues and, at just 18.6 %, was significantly below our long-standing target of 25 %, due also to the impairment losses recorded. Our EBIT adjusted by restructuring cost, one time cost and write offs based on the impairment test fell to Kontron has identified market related and internal difficulties as reasons for the continued weak performance: Partially the challenging market situation, that our customers are currently facing and affecting Kontron indirectly. Demand was lower as predicted. This has a direct impact on Kontron’s revenues because the framework agreements in place are being drawn down to a lesser extent than expected, as well as on order intake. Furthermore over the past couple of months Kontron changed its sales structural setup and parts of its product portfolio, to provide especially its midsized and small size customers with standard products, also with the support of distribution partners. However, the measures taken to reorganize are not yet showing full effect. On top of this, the implementation of several individual projects has unexpectedly been postponed into the second half of the year or even next year. Here, the development cycles are taking longer than expected. To steer against the revenue weakness and to adjust costs, Kontron is presently starting a comprehensive program of actions. Total Year 2016 Kontron expects for the second half of the year 2016 a slightly higher revenue than in the first six months . Furthermore we anticapte, that the EBIT-Margin adjusted by restructuring cost, one time cost and write offs based on impairment test as well as the Gross Margin will be at the same level as in the first half of the year. Kennzahlen für das 2. Quartal 2016
*In Q2/2015 only corrected by restructuring cost ### About Kontron: For more information: Alexandra Habekost
2016-07-25 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English | |
Company: | Kontron AG | |
Lise-Meitner-Straße 3-5 | ||
86156 Augsburg | ||
Germany | ||
Phone: | 00498214086114 | |
Fax: | 00498214086122 | |
E-mail: | Alexandra.Habekost@kontron.com | |
Internet: | www.kontron.com | |
ISIN: | DE0006053952 | |
WKN: | 605395 | |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Terminbörse EUREX | |
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