Kongsberg Automotive reports Q1 2019 results

Kongsberg Automotive ASA Q1 2019 Report and Presentation follow attached.

Q1 2019 Highlights:

In spite of a generally declining market, revenues grew by MEUR 18 (6.3%) YoY to MEUR 307 including positive FX effects of MEUR 5.
We had another strong booking quarter as we won new business worth MEUR 65 in annual revenues which corresponds to MEUR 339 in expected lifetime revenues.
Adj. EBIT improved YoY by more than 6% with margins slightly up, which represents a YoY increase by MEUR 1 to MEUR 22.
However, the fall through of the additional revenues was limited due to:
- Increased costs of raw materials and custom duties in Q1 2019 with a YoY effect of negative MEUR 3.
- Unfavorable product mix effects as well as segment and market mix effects
- An unexpected Mexican labor cost increase of MEUR 1.
Positive FX effects of 1 MEUR
We had YoY 80% lower restructuring costs which improved our EBIT significantly
Free cash flow was negative MEUR 29 primarily driven by working capital increase primarily due to seasonality which should largely be reversed in Q2.
Cash on hand at the end of Q1 2019 of MEUR 32.
On a non IFRS adjusted basis, the LTM adjusted gearing ratio (NIBD/Adj. EBITDA) improved from 2.4X in Q1 2018 to 2.2X in Q1 2019. After the IFRS 16 adjustments, our gearing ratio is 3.0X.

The earnings conference call including a review of the Q1 Presentation can be followed through this link starting at CET 09:00: