LINZ (dpa-AFX) - The Austrian technology group Kontron is cutting its dividend in half despite an increase in profits in the previous year. Shareholders will receive 0.50 euros per share, as the company announced in Linz on Thursday. A year earlier, the dividend was still one euro. Kontron recently acquired the German electronics company Katek and spent money on it. Kontron had already presented key data on business in 2023 and the outlook for the new year. The share price fell sharply.

The share price fell by 5.1 percent to EUR 21.02 after the start of trading, having recently fallen by 4.8 percent. Since the beginning of November, the share price has mainly moved in a range between 20.50 and 22.50 euros. According to analyst Adrian Pehl from investment firm Stifel, the operating profit for 2023 fell short of expectations.

"2023 was a successful year for Kontron, and 2024 will be even better," said Group CEO Hannes Niederhauser according to the press release. In 2022, the Group sold its services business and is now focusing primarily on software for networking machines and devices (IoT). Last year, the Austrians made several acquisitions, and this year the provider Katek from Munich was added.

Niederhauser expects the acquisition to strengthen its position in the renewable energy and aviation sectors. The use of Kontron software at Katek should improve their gross margins, according to the presentation of the deal in January. Connecting photovoltaic control electronics to the data network would allow solar power to be fed into the energy grid more intelligently and cost-effectively, Niederhauser said at the time. Solar roofs would also become part of the networked home. The manager also believes that battery charging technology for electric cars has good prospects.

Kontron's consolidated profit rose last year from an adjusted EUR 55.5 million to EUR 75.3 million in continuing operations. In total, it amounted to EUR 77.7 million. Most recently, Kontron had forecast a consolidated net profit of at least EUR 72 million.

The management of the Austrian company confirmed the already known outlook for the new year. Turnover is expected to increase from 1.2 billion to at least 1.9 billion euros, mainly thanks to the Katek takeover, and profits are expected to reach around 100 million euros.

In a study following the presentation of the figures, expert Martin Comtesse from investment house Jefferies referred to the good planning capability in view of the order backlog. This reached 1.69 billion euros./men/lew/mis