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The Norwegian industrial group Kongsberggruppen plunges on the Oslo Stock Exchange after presenting first-quarter results on Tuesday. The market is obviously not happy with what was presented and sends the share down as much as 18 percent.
Around NOK 13 billion of the market value has been blown away during the trading day.
«Extraordinary appreciation»
The group increased operating revenues to NOK 7 billion, up 11 per cent from the same period last year. According to the company, there was growth in all business areas.
Operating profit before depreciation (EBITDA) ended at NOK 829 million, slightly down from the same period last year. This was expected to be NOK 1.068 billion in advance, according to the news agency TDN Direkt. The Kongsberg Group highlights two factors that affected ebitda in the quarter:
- What is described as an “extraordinary appreciation” to all employees of NOK 113 million.
- Kongsberg Maritime has made a loss provision of NOK 69 million related to customer relationships that are affected by the sanctions against Russia.
The net operating profit ended at NOK 522 million in the quarter, down from NOK 575 million in the first quarter last year. This was significantly weaker than the NOK 762 million analysts had expected in advance.
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Order backlog of 50 billion.
At the end of the first quarter, the order backlog was NOK 49.9 billion.
In Kongsberg Maritime, order intake was almost NOK 6 billion, 46 per cent higher than in the first quarter of 2021. The increase came especially from the newbuilding market, according to the company.
Order intake in Kongsberg Defense & Aerospace was NOK 1.3 billion in the quarter. According to the Kongsberg Group, the defense market is characterized by relatively few, but large contracts where deliveries normally take place over several years. Therefore, significant fluctuations in order intake between quarters and years are considered normal, according to the company.
Warns of fluctuations in income
The Kongsberg Group is also affected by the ongoing challenges associated with bottlenecks, raw material prices and long waiting times for components.
– Due to the logistics challenges and the lack of components the world is facing, we are experiencing increased lead times and difficult access to some components. Among other things, this has led to delays in deliveries of weapons control systems, which has had a negative effect on operating revenues in the quarter. The increased raw material prices affect, among other things, the costs of producing propellers, says CEO Geir Håøy in a statement, who also says that the company implements measures continuously.
According to him, the challenging raw material, logistics and component situation will cause fluctuations in revenues in the coming quarters.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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