The technology group Kontron has landed two orders from the aviation industry with a total volume of 100 million euros.
The SDAX-listed company will install essential components of a satellite-based entertainment and communication system (IFEC) in the aircraft of several airlines from 2024, as it announced on Tuesday in Linz. The order is expected to bring Kontron sales of around 90 million euros within five years.
In addition, starting next year, the company will reportedly supply a leading satellite communications operator with IFEC devices to be installed on aircraft of several airlines. The company, which focuses on the Internet of Things (IoT), said the order has a volume of around ten million euros and will run for two years. There is the possibility of increasing the order volume and adding further deployments.
Million-dollar orders cause Kontron’s share price to jump
Kontron shares rose on Tuesday after the announcement of two orders with a significant price jump: The shares temporarily rose above important resistance at the top of the SDAX with a premium of almost seven percent and immediately passed the 100- and 200-day prices in one go. Lines for the longer-term trend behind them. Most recently they were up 5.43 percent in XETRA trading at 19.04 euros. The technology group is thus accelerating its recent price recovery from the interim low in September.
The Austrians had previously announced two orders from the aviation industry with a total volume of 100 million euros. A trader noted that this sum corresponds to around eight percent of total group sales and accordingly supports the shares.
Despite much positive news this year, the Kontron share chart is like a roller coaster ride. Days of upward movement were usually followed by a significant setback. This was also the case in the last two months, when the Kontron price initially reached its annual high of EUR 21.16 at the beginning of August. At the time, the group announced that it would exceed its profit target this year. Just a few weeks later, the company announced takeovers that briefly gave it another boost.
However, the Kontron shares were unable to escape the generally weak market trend and the concern that interest rates would remain high for a long time, which particularly weighed on the technology sector, which is heavily financed by loans: in mid-September the price fell to its lowest level since the end of April. Even the announcement of a share buyback worth millions at the end of last month had not yet been able to provide a lasting relief.
As of Tuesday, however, the shares are now up by around a quarter for the year, making them one of the bigger winners in the small cap index.
LINZ / FRANKFURT (dpa-AFX)
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