Standard of Excellence: The Human Touch in an Automated World
The Government Circuit: Navigating New Trade Headwinds and New Partnerships
Global Sourcing Spotlight: How to Evaluate Supplier Capabilities Worldwide
Kitron Posts Stable Top Line and Continued Operational Improvements
October 26, 2016 | KitronEstimated reading time: 2 minutes
Kitron's revenue in the third quarter amounted to NOK463 million, compared to NOK468 million in the third quarter last year.
Operating profit (EBIT) was NOK30.1 million, compared 26.3 million last year.
Net profit amounted to NOK17.7 million, a decrease from 22.8 million. The decrease is caused by a change in net finance related to non-cash currency effects. This corresponds to earnings per share of NOK0.10, compared to NOK0.13 last year.
Kitron CEO Peter Nilsson said, "We had some issues on the top line this quarter, due to postponements into the coming quarters. However, our work on operational improvements progressed well, resulting in a positive development of operating profit and cash flow. This, combined with a strong order backlog, gives me confidence in the coming quarters."
- Stable revenue, solid order backlog
- Improved underlying profitability
- Key customer agreements signed
- Improved capital efficiency
- Significant change in shareholder structure
Stable revenue, solid order backlog
Kitron's revenue in the third quarter was 1% lower than last year. Adjusted for foreign exchange effects, the decline was 2%. The third quarter sales were affected by normal seasonality while the seasonality last year was unusually weak. In addition, some customer projects were postponed.
The order backlog ended at NOK980 million, an increase of 7% compared to last year.
Improved underlying profitability
Profitability expressed as EBIT margin was 6.5% for the quarter, compared to 5.6% in the third quarter of 2015.
Key customer agreements signed
Kitron signed two strategically important customer agreements in the third quarter.
In July, Kitron was selected as a new preferred supplier for Dentsply Sirona, the world's largest manufacturer of professional dental products and technologies, validating Kitron's long-term investments in the German market.
In September, Kitron received orders from Aidon OY of Finland for communication modules with a value for Kitron of more than NOK 100 million over the next three years. This increases the current business scope with Aidon. Production will take place at Kitron's plant in Kaunas, Lithuania.
Improved capital efficiency
Net working capital was reduced by 8% from the same quarter last year. Operational cash flow was NOK36.4 million, compared to NOK32.7 million last year.
Significant change in shareholder structure
During October, the two largest shareholders sold all their shares, resulting in a significant increase in the float of the Kitron share.
Outlook
For 2016, Kitron has previously indicated revenue of between NOK2,050 and NOK2,250 million and EBIT margin of 5.3 to 6.3%. Due to currency effects and postponed projects, revenue is now expected to be in the lower half of the indicated range. The growth is driven by increased demand in the Industry and Defence/Aerospace sectors. The profitability increase is driven by cost reduction activities and improved efficiency.
About Kitron
Kitron is one of Scandinavia's leading electronics manufacturing services companies for the Defence/Aerospace, Energy/Telecoms, Industry, Medical devices and Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania, Germany, China and the United States. Kitron had revenues of about NOK 1.95 billion in 2015 and has about 1 250 employees. www.kitron.com
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
Coherent Announces Agreement to Sell Aerospace and Defense Business to Advent for $400 Million
08/15/2025 | AdventCoherent Corp., a global leader in photonics, today announced that it has entered into a definitive agreement to sell its Aerospace and Defense business to Advent, a leading global private equity investor, for $400 million. Proceeds will be used to reduce debt, which will be immediately accretive to Coherent’s EPS.
KYZEN Partners with LPW to Elevate High Purity Cleaning with Cutting-Edge Cyclic Nucleation Technology in North America
08/13/2025 | KYZEN'KYZEN, a global leader in advanced cleaning solutions, has reached a major milestone in high-purity cleaning with the addition of a state-of-the-art Vacuum Cyclic Nucleation System at its North American Application Lab.
Jeh Aerospace Raises $11M to Boost Aircraft Supply Chain
08/12/2025 | I-Connect007 Editorial TeamJeh Aerospace, the high-precision aerospace and defense manufacturing startup founded by Vishal Sanghavi and Venkatesh Mudragalla, has raised $11 million in a Series A round led by Elevation Capital, with support from General Catalyst, to scale its commercial aircraft supply chain manufacturing in India, according to OEM.
New Frontier Aerospace and Air Force Institute of Technology Sign CRADA to Advance Hypersonic VTOL Aircraft
08/05/2025 | PR NewswireNew Frontier Aerospace (NFA) is excited to announce a Collaborative Research and Development Agreement (CRADA) with the Air Force Institute of Technology (AFIT) aimed at advancing an innovative rocket-powered hypersonic Vertical Takeoff and Landing (VTOL) aircraft.
Honeywell Advances Technology That Lets Fighter Pilots Breathe Easier for Peak Performance
08/04/2025 | HoneywellHoneywell has developed and launched a new technology that allows military pilots of high-performance fighter jets to breathe easier under extreme conditions.