– We delivered another strong quarter with NOK 9.6 billion in operating income and NOK 1.0 billion in operating profit. The order reserve has increased to NOK 68.1 billion and we continue to underpin further growth. We see significant opportunities ahead, which makes us confident that the order backlog will grow further, says CEO Geir Håøy of Kongsberg Gruppen.
In comparison, the industrial group had revenues of NOK 7.6 billion and an operating profit of NOK 0.7 billion in the second quarter of last year.
In the second quarter, all of Kongsberg Gruppen’s business areas increased their income by over 20 per cent compared to the same period last year.
Must have more employees
The quarterly report states that Kongsberg Maritime increased activity in both the newbuild and aftermarket, and delivered growth of 24 per cent. Kongsberg Defense & Aerospace increased operating income by 29 per cent, mainly driven by missile and air defense.
Kongsberg Discovery grew 25 per cent, primarily driven by increased activity linked to deliveries of the autonomous underwater vehicle Hugin, while Kongsberg Digital’s growth of 55 per cent is driven by the ongoing rollout of digital solutions, which also generates increased recurring income.
– Such a rate of growth requires both good management and planning, and considerable work has been done throughout the group to scale the business in line with the increasing activity. This is a development that will continue and Kongsberg Gruppen will be in the market to employ a significant number of people in the coming years, says Håøy.
– We also invest in new and more efficient production and maintenance buildings. This winter we started the construction of the new missile factory, which will be completed in the summer of 2024, and in June this year we decided to invest around NOK 500 million in a new depot for the maintenance of the hulls of the Norwegian F-35 aircraft. From the new depot, we will also be able to carry out maintenance tasks on other nations’ F-35s, he continues.
More for defense
Kongsberg Gruppen has had strong growth for several quarters in a row. That growth will continue in the future is as expected. In an interview in Finansavsien on Wednesday, Danske Bank manager Lars Erik Moen says:
“The war in Ukraine has changed the market going forward and people will focus more on defence. The countries have not started ordering new systems yet, as there are much longer ordering processes in the defense industry. This is going to come.”
At the end of the first half of the year, the group had an order reserve of NOK 68.1 billion. Of this, 16.3 billion must be delivered already this year.
“In addition, Kongsberg Gruppen sees significant demand for the group’s broad technology portfolio from both civilian and military customers,” the report states.
– We have never had stronger market positions, both in established and new markets. This makes me confident that the Kongsberg Group will continue the growth journey we are on, says the CEO.
(Million NOK)2. sq./232. q/22Operating income9 6147 567Operating profit1 038683Profit before tax984676Profit after tax777536
WATCH LIVE: Webcast from the quarterly presentation at 8.15
2023-07-12 05:02:48
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