FRANKFURT -(Dow Jones)- German computer system specialist Kontron AG (KBC.XE) said Tuesday its unit Kontron Americas Inc. has sold its Mobile Rugged business to U.S. company Crane Co. (CR) for $26.6 million in cash.
The unit recorded revenue of $25 million in 2006.
Kontron expects to book a gain in the middle one-digit million euro area but the exact amount can't at this point be estimated, Chief Executive Hannes Niederhauser told Dow Jones Newswires in an interview.
The divestment is part of Kontron's move to focus on its core business in embedded computer systems for markets including telecoms, automation, medical, energy and military.
Kontron doesn't expect a loss in revenue from the unit's sale as Crane is expected to use it in the energy sector.
For the mid- and long-term Niederhauser expects a positive influence on earnings before interest and taxes from the sale.
Mobile Rugged was only marginally profitable and hindered other areas in the company's development, he said.
Separately, Kontron expects an increase in its third-quarter EBIT margin compared with the 9.3% margin posted in the second quarter. For the mid-term the company wants to increase its EBIT margin to more than 12%.
The company confirmed its 2007 forecast of clear above-average profit growth and a double-digit increase in revenue.
An EBIT margin of 9.2% is expected for the full year, from 8.2% in 2006 and 7.5% in 2005, Niederhauser told Dow Jones Newswires.
Company Web site: www.kontron.de
-By Alexander Becker, Dow Jones Newswires; +49 89 5521 4030; email@example.com
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