Kontron 's figures are in line with the revised expectations from October 2016, but significantly below the original financial year forecast at the beginning of 2016: Kontron's revenue fell by 17.7% to EUR 385.1 million in the 2016 financial year (previous year: EUR 467.7 million).

Kontron recorded a decline in the key figures of incoming orders, sales and profit.

© Kontron

Decline in all divisions

The decline occurred in all three divisions over the course of the year: The Industrial division recorded a drop of 15.6% to 198.4 million euros (previous year: 234.7 million euros). The Avionics/Transportation/Defense division generated EUR 96.6 million (previous year: EUR 127.2 million), down 24.3% on the previous year. At EUR 90.1 million, the Communication division also remained below the previous year's level (EUR 105.8 million). At 361.5 million euros, incoming orders were 7.7% down on the previous year (2015: 391.8 million euros).

Goodwill impairment and expenses from the restructuring program initiated in the second half of 2016 also had a negative impact on earnings and led to an EBIT of -141.7 million euros (previous year: 6.2 million euros) and an adjusted EBIT of -58.8 million euros.

Synergies through cooperation with S&T

Kontron is aiming for a turnaround by merging with S&T, for which the company is seeking shareholder approval at this year's Annual General Meeting. Since November 2016, the S&T Group has been Kontron's largest shareholder, holding around 29.9 % of the voting rights and share capital. In February 2017, a letter of intent was announced that provides for a merger of Kontron with S&T Deutschland Holding AG.

The two companies Kontron and S&T have a portfolio of hardware, software and services and are also expected to complement each other in the markets in which they operate. Kontron therefore expects a number of positive effects and synergies from a future partnership or merger with S&T, such as the joint utilization of know-how in the area of research and development through to the development of new innovative products, solutions and services.

Outlook for 2017

Due to the downward trend in order intake, Kontron expects revenue in 2017 to be similar to the 2016 financial year. The gross margin is expected to rise above 25 % again due to the partnerships with Ennoconn and S&T.

Due to the current restructuring program, the Management Board expects annual cost savings of more than EUR 15 million, which should take effect from the second quarter of 2017. Based on the cost reductions and the higher gross margin, a balanced result is expected for 2017.