Update: 2014 investment headwind, but technology wins
Kongsberg Automotive’s (KA) results showed an accelerated investment headwind in Q4 which, while not unexpected, held back EBIT below our forecasts. Revenue was in line, although early December shutdowns at certain customers also affected margins in the group’s Fluid Transfer division. Despite this, the group continued to generate strong cash flow allowing further debt reduction, with gearing down to 2.2x net debt: EBITDA. While market conditions deteriorated towards year end, the group’s investment in R&D, which reached 6% of sales, has yielded substantial orders for new technology areas such as AMT and Shift-by-Wire. This drove a record order intake of €282m of annualised revenues, although this is unlikely to show through for around two years.Kongsberg Automotive develops, manufactures and sells products to the automotive industry worldwide. The product portfolio includes seat comfort systems, driveline related systems, fluid assemblies, and industrial driver-interface products developed for vehicle manufacturers. Co.'s business area focus on interior, which provides safety and comfort related products; driveline, which provides gear shift systems for light duty vehicles; fluid transfer, which provides fluid handling systems for commercial vehicles and passenger cars; and driver control, which provides driver control systems and chassis related products to commercial vehicles, outdoor power equipment and recreational products.
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