Nolan’s Notes: Finding Your Sweet Spot
Standard of Excellence: Delivering Excellence—A Daily Goal
Knocking Down the Bone Pile: Tin Whisker Mitigation in Aerospace Applications, Part 3
Kitron: Electrification and Industry Sectors Drive Revenue Growth
April 21, 2021 | KitronEstimated reading time: 2 minutes
Kitron reported quarterly figures showing strong growth within the market sectors Electrification and Industry. The company’s revenue for the first quarter was NOK 938 million, an increase of 7 percent compared to last year. Profitability expressed as EBIT margin was 7.0 percent in the first quarter, compared to 6.7 percent in the same quarter last year.
Peter Nilsson, Kitron's CEO, comments:
“We continue to capitalize on two of the most fundamental changes in the global economy: the move to renewable energy and electrification and the rapid growth in machine-to-machine communications. The demand is very strong. However, as the general material supply situation is challenging, Kitron’s operations will have to be flexible to deliver the demand. In general, the first quarter demonstrates that Kitron’s growth follows the strategic path we outlined at our capital markets presentation in March.”
Increased revenue
Kitron’s revenue for the first quarter was NOK 938 million, compared to NOK 878 million in the same quarter last year. Growth adjusted for foreign exchange effects in consolidation was 9 percent.
As previously reported, Kitron has realigned the market sectors the company reports on to better reflect current activity as well as identified growth opportunities. Two new market sectors are added: Electrification and Connectivity.
In the first quarter there was strong revenue growth within the Electrification, Connectivity and Industry sectors, while revenue declined within Defence/Aerospace. As expected, revenue within Medical devices has gradually been normalized after the pandemic-related demand surge during 2020.
Solid order backlog
The order backlog ended at NOK 2 060 million, virtually unchanged from last year. The order backlog increased within the Electrification, Connectivity and Industry sectors. As expected, the order backlog within Medical devices declined. Adjusted for changes in currency rates, the order backlog increase was 8 percent compared to last year.
Improved profitability
First quarter operating profit (EBIT) was NOK 65.4 million, compared to 58.4 million last year. EBITDA was NOK 90.2 million, compared to 82.7 million last year. Profit after tax was NOK 43.4 million compared to 40.9 million in the same quarter the previous year. This corresponds to earnings per share of NOK 0.24, up from 0.23 last year.
Strong operating cash flow
Operating cash flow was NOK 78.3 million, compared to 102.4 million in the first quarter of 2020. Net working capital was NOK 1 035 million, an increase of 2 percent compared to the same quarter last year. Capital efficiency ratios are expected to improve moving forward.
Outlook
For 2021, Kitron expects revenue between NOK 3 900 and 4 200 million. EBIT margin is expected to be between 6.8 and 7.4 per cent. The outlook for 2021 implies that Kitron is back on its long term trajectory for revenue and profitability after exceptional growth in 2020, largely driven by Corona-related demand within the Medical devices sector. Growth is driven by Connectivity, Electrification, and Industry sectors. The Medical devices sector is expected to be normalised and in line with previous years. The outlook for Defence/Aerospace is slightly down.
Share on:
Suggested Items
S&K Aerospace Awarded Major Contract Under DLA Maritime Acquisition Advancement Program
07/02/2025 | BUSINESS WIRES&K Aerospace, LLC has been awarded a significant contract under the Defense Logistics Agency’s (DLA) Maritime Acquisition Advancement Program, managed by the U.S. Naval Supply Command - Weapon Systems Support (NAVSUP WSS) in Mechanicsburg, PA.
Green Circuits to Exhibit Full-Service Electronics Manufacturing Solutions at 2025 SMD Symposium
07/02/2025 | Green CircuitsGreen Circuits, a full-service Electronics Manufacturing Services (EMS) partner to leading OEMs, is pleased to announce its participation in the 2025 SMD Symposium, taking place August 5-7 at the Von Braun Center in Huntsville, Alabama.
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.