Kontron AG’s continuing IoT business, along with a number of large orders, is expected to drive its estimated 2023 profit to 60 million euros. This would be an increase of 25 percent.
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Kontron AG: 2023 with even higher profit
Things were already not going badly for Kontron AG in 2022, with an enormous increase in sales, especially in the fourth quarter. Currently, shareholders are planning a dividend proposal of one euro per share as well as share buybacks.
At the same time, there is a high order backlog at the beginning of the year, and surcharges are being levied for large orders. The planned net income is expected to increase to more than 60 million euros in 2023, which would be an increase in sales of 25 percent compared to the previous year.
Sales are subject to organic growth, which is expected to be at a level of 10 percent. It is expected to amount to an estimated 1,200 million euros. The two major orders that have been signed recently have a considerable share in the financial planning, as they alone amount to more than 130 million euros. Nobody at Kontron AG can complain about a lack of orders.
Special profits and high sales at Kontron
Currently, it looks as if the sales forecast for 2022 will be fulfilled. Sales of 1,100 million euros were assumed, and even 1,500 million euros if the companies sold are included. The net operating result, on the other hand, cannot yet be presented; no reliable figures are yet available in this regard.
Kontron assumes that the guidance amounts to 56 million euros operationally, calculated from discontinued and continuing operations. In 2021, the guidance was around eight million less and was only 48 million euros. The expected special profit is estimated to be around 160 million, but the final figures will not be available until the 2022 annual report.
Kontron also has high cash reserves, which are to be used for strategic acquisitions in the IoT area as well as for share buybacks. In addition, the management is planning higher dividends for the coming year.
One of the major projects already mentioned is the “Egypt High Speed Rail Project”, in which Kontron will provide the wireless technology for Siemens Mobility. This is intended to usher in a new era for railroads in the Middle East, Africa and Egypt. A high-speed rail network of around 2000 kilometers is to be created.
About Kontron
The world’s leading provider of state-of-the-art technology for the IoT offers a broad portfolio in the areas of industry and Internet of Things. Hardware and software are offered as well as services for individual solutions.
The products are available as standard or customized versions and are based on new technologies. Various industries belong to the target group of the company, which focuses above all on security, trust and innovative strength. Customers benefit from long product life cycles, holistic applications and low costs.
