3. QUARTER 2006
Press release 3. quarter 2006 Growth in operating revenue Kongsberg Automotive Holding increased the operating revenue in the third quarter 2006 compared with same period 2005 from MNOK 597 to 618, an increase of 3,5 %. The growth is in addition to yearly price reductions and give a volume growth of 7,9 %. Year to date the total operating revenue is MNOK 1 964 (1 758), an increase of 10,3 %. Stable market The sales in the personal car market in Europe have been at the same level as last year, while there has been a decline in the North American market for light vehicles. The European commercial vehicles market is still on a high level. The company has won several important orders within all business areas. The first program for Seat Support in the Asian market is a breakthrough. 3. quarter result The operating profit for the third quarter 2006 was MNOK 52 compared to 74 in the same period of 2005. The main explanation factors are - Higher raw material prices which are not fully compensated by increased prices. (MNOK 7) - Less favorable product mix as a consequence of lower sales of high-end cars with higher contribution (MNOK 11) - Extraordinary costs linked to the start-up of new products, and temporary capacity constraints (MNOK 11) September shows a margin in line with first half year. Net profit year to date in line with last year The net profit year to date is MNOK 120 compared to 119 the first 9 months of 2005. The net profit in the quarter is MNOK 18 (33). Positive future outlook The market for the rest of the year is considered to be positive. The company`s focus on Asia will increase due to the considerable amounts of projects identified. The activities to reduce the cost of purchased material are intensified, the same goes for moving labour intensive operations to low cost countries. The EBITA margin for the 4th quarter is expected to be above the first half year (11,2%) There are plans for internal restructuring for improved efficiency to increase R&D and marketing efforts. There are processes with several M&A opportunities. For more information we refer to the enclosed material. Kongsberg 18.10.2006 The Board of Directors of Kongsberg Automotive Holding ASA For more information please contact CEO Olav Volldal, tlf +47 982 14 014 CFO Trond Stabekk, tlf +47 982 14 054