Kontron AG publishes figures for the financial year 2012

Operating earnings (EBIT) stood at EUR -32.5 million, are affected mainly by two factors: a lower gross profit margin, and non-recurring items. The latter included in particular valuation effects (impairment of goodwill, inventories and internal R&D projects) amounting to EUR 23.2 million, reorganization costs of EUR 8.4 million (costs for harmonizing IT systems, strategy consultancy services in connection with the optimization program Shape, and severance payments), and costs of EUR 2.7 million triggered by restructuring measures. All in all, these special items, including a one-off repayment of duties of EUR +1.6 million, totaled EUR -32.7 million. Accordingly, adjusted EBIT was EUR 0.2 million (previous year: EUR 38.1 million).

Key financial figures have improved or are on a similar level compared to last year. With an equity ratio of 62.3 % (previous year: 63.7%), an operating cash flow of EUR 46.2 million (previous year: EUR 31.6 million) and a net cash position of EUR 13.2 million (previous year: EUR 1.2 million), Kontron has a sound financial basis. Because of the adverse operational development and the challenges ahead, Management and Supervisory Boards will propose to the Shareholders' General Meeting a dividend of EUR 0.04/per share to be paid for the financial year 2012 (previous year: EUR 0.20/per share).

During the second half of 2012, Kontron began the Shape optimization program, which focuses on reorganizing local legal entities into global business segments, as well as on combining local activities in Supply Chain and R&D to globally operating teams. Initial one-off effects of Shape are included under ‘special items’ in the accounts for the reporting year.

We have a strong position in the global ECT market and a sound balance sheet. With the measures taken to date, however, there is still a long way to go to the finish line, said Rolf Schwirz, new Chief Executive Officer of Kontron AG. To safeguard our leading position in one of the world's most dynamic and promising technology markets, we are currently taking a close and critical look at our company. April 24th 2013 we are going to explain the new strategy of Kontron.”

With the Shape optimization program now launched and the necessary strategic realignment, management anticipates a year of transition in 2013, with major challenges for the Kontron Group. The Management Board predicts that revenue and profit trends in the financial year 2013 will be similar to those seen the year before. Market and sectoral environment will remain difficult, with the associated potential secondary effects and margin impact. Efficiency-enhancing measures within the company will also cause non-recurring costs. Nonetheless, the company's strong market position and dynamic capacity to innovate, coupled with the impact of the Shape optimization program and other measures, give rise to the expectation of renewed growth in revenues and profitability in the medium term.

Highlights:
-Revenues of EUR 547.0 million
-Adjusted EBIT of EUR 0.2 million
-Dividend proposal of EUR 0.04 per share
-CEO to explain new strategy on 24th April