Quarterly Result
Kontron Parent Company S&T can Almost Double Profits
The cost-cutting measures introduced at Kontron early in 2017 are now leading to significant sales growth. The profit was even almost doubled.
The technology group S&T AG increased both sales and earnings in the first quarter of 2018. Compared to the same quarter of the previous year, sales increased by around 11% to EUR 203.6 million (previous year: EUR 182.8 million), gross profit rose from EUR 71.8 million to EUR 74.1 million. EBITDA (earnings before interest, taxes, depreciation and amortization) increased significantly by around 40% to EUR 17.1 million (previous year: EUR 12.2 million). This is due to the cost-cutting measures initiated at the subsidiary Kontron at the beginning of 2017. Consolidated net income increased overall by almost 100% to EUR 7.5 million (previous year: EUR 3.8 million). Earnings per share rose from 5 to 12 cents as a result of the cash and non-cash capital increases implemented from summer 2017.
All three of the S&T Group's business segments developed positively in the first quarter of 2018. The main driver of profitability remains the »IoT Solutions« segment, whose EBITDA of EUR 9.2 million was double that of the first quarter of 2017. This segment already supplies 54% of the S&T Group's EBITDA. The order backlog rose to EUR 501 million at the end of the first quarter 2018 (to EUR 474 million at December 31, 2017).
»2017 was an extremely successful year for S&T and we are now continuing this track record of success,« states Hannes Niederhauser, S&T AG's CEO. »The strong rise in earnings is largely attributable to our IoT Solutions segment – and to the innovations that we have created in the field of Industry 4.0. We will continue investmenting in this market, which is just taking off. We have worked really hard to become leaders in various fields of this key technological sector and we intend to continue benefitting from its strong growth. For 2018, we plan to achieve revenues of around EUR 1 billion and EBITDA of at least EUR 80 million for the first time. Our goal for 2023 is EUR 2 billion in revenues.«
