-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
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
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
06/27/2025 | Nolan Johnson, I-Connect007While news outside our industry keeps our attention occupied, the big news inside the industry is the rechristening of IPC as the Global Electronics Association. My must-reads begins with Marcy LaRont’s exclusive and informative interview with Dr. John Mitchell, president and CEO of the Global Electronics Association. For designers, have we finally reached the point in time where autorouters will fulfill their potential?
Knocking Down the Bone Pile: Tin Whisker Mitigation in Aerospace Applications, Part 3
06/25/2025 | Nash Bell -- Column: Knocking Down the Bone PileTin whiskers are slender, hair-like metallic growths that can develop on the surface of tin-plated electronic components. Typically measuring a few micrometers in diameter and growing several millimeters in length, they form through an electrochemical process influenced by environmental factors such as temperature variations, mechanical or compressive stress, and the aging of solder alloys.
RTX, the Singapore Economic Development Board Sign MOU Outlining 10-year Growth Roadmap
06/20/2025 | RTXRTX and the Singapore Economic Development Board (EDB) have signed a Memorandum of Understanding (MoU) which outlines a 10-year roadmap to further long-term strategic collaboration in Singapore.
Indra Signs Agreement with AXISCADES to Boost Production of Cutting-Edge Systems in India
06/18/2025 | PRNewswireParis Air Show -- Indra and the Indian technology company AXISCADES have signed an agreement to collaborate on the production of solutions for the aerospace and defense markets.
GKN Aerospace Delivers First High Voltage EWIS System for Clean Aviation’s SWITCH Project
06/16/2025 | GKN AerospaceGKN Aerospace has completed and delivered the first high voltage Electrical Wiring Interconnection System (EWIS) for the Clean Aviation SWITCH project.