Kontron AG: Second-quarter revenue of EUR 138.3 million and EBIT of EUR 3.8 million; adjustment of FY 2012 guidance

Kontron AG  / Key word(s): Miscellaneous

24.07.2012 06:46

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Eching, Munich, July 24, 2012 - Kontron AG, the globally leading
manufacturer of embedded computer technology, generated EUR 138.3 million
of consolidated revenue in the second quarter of 2012. Although revenue
declined slightly compared with the previous year's quarter (EUR 145.2
million), it was ahead of the first quarter of 2012 (EUR 131.5 million).
Revenue in the first half of the year totaled EUR 269.8 million, compared
with EUR 275.3 million in the prior-year period.

The further deterioration in the state debt crisis and a weakening of the
global economy impacted Kontron in terms of both revenue and earnings. The
austerity measures pursued by many public-sector customers is feeding
through to postponed orders and, at the same time, to a further increase in
competitive intensity in many sectors such as infrastructure, security and
telecommunications. These factors are burdening revenue trends, diminishing
achievable margins, and making further planning difficult. Kontron
nevertheless succeeded in growing its revenue compared with the preceding
quarter, but also in raising its gross margin from 25.7 % (Q1/2012) to 27.3
% (Q2/2012). The cost and margin situation in some areas remains
unsatisfactory, however, and offers opportunities for improvements.
Extraordinary costs arising from an outsourcing project are also affecting
earnings. With EUR 3.8 million of EBIT, Kontron did not achieve the
previous year's quarterly result of EUR 11.4 million overall. In terms of
the half-year, the Group reported EUR 8.0 million of EBIT (H1 2011: EUR
18.7 million). Second-quarter net income stood at EUR 2.3 million (Q2 2011:
EUR 7.7 million), while net income for the first six months amounted to EUR
5.1 million (H1 2011: EUR 12.9 million).

The number of design wins improved by 8 % year-on-year to 132, and
reflecting Kontron's continued good positioning. The volume of design wins
was down from EUR 71.2 million in the previous year to EUR 60.8 million due
to uncertainty on markets, however. The order book position was also
affected by a more cautious approach among customers to the awarding of
orders, and amounted to EUR 362.8 million as of June 30, approximately 14 %
below the previous year's figure (June 30, 2011: EUR 424.0 million).

Kontron will prospectively fail to attain its FY 2012 targets due to
current imponderables relating to the world economy, and continued
prevailing uncertainties on many target markets, which are accompanied by
an increase in competitive intensity. Kontron will review its product lines
and vertical markets, and will direct its own capacities, particularly its
research and development capacities, towards attractive and growing markets
and regions. The company is currently performing such a review, thereby
taking into account changes to market conditions with the aim of enhancing
profitability.









Investor Relations:                Further information:
Gaby Moldan                        Dr. Udo Nimsdorf   
Kontron AG                         Engel & Zimmermann AG
Oskar-von-Miller-Str. 1,           Unternehmensberatung für Kommunikation
D-85386 Eching                     Schloss Fussberg, Am Schlosspark 15 
Tel: +498165/77212, 
Fax  +498165/77222                 D-82131 Gauting
                                   Tel: +4989-89 35 633, 
                                   Fax: +4989-89 39 84 29
Email: Gaby.Moldan@kontron.com     Email: info@engel-zimmermann.de 

  


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Language:     English
Company:      Kontron AG
              Oskar-von-Miller-Str. 1
              85386 Eching
              Germany
Phone:        08165-77-225
Fax:          08165-77-222
E-mail:       gaby.moldan@kontron.com
Internet:     www.kontron.com
ISIN:         DE0006053952
WKN:          605395
Indices:      TecDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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