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Kitron Adjusts Outlook due to Lockdown in China
December 14, 2021 | KitronEstimated reading time: Less than a minute
The authorities in Ningbo, China, have imposed a lockdown in Zhenhai, one of the six districts in Ningbo, due to an outbreak of COVID-19 in the area. Kitron’s facility is located in the Zhenhai district, and although there are no known cases at Kitron's facility, production was halted on December 7 due to the restrictions. The production halt is expected to last two weeks.
Kitron's other sites will not be able to compensate for the production halt in Ningbo.
For 2021, Kitron has previously indicated a revenue outlook of between NOK 3 700 and 3 900 million and an EBIT margin between 6.8 and 7.1 percent.
Revenue is now expected to between NOK 3650 and 3750 million, and EBIT is expected to be between NOK 235 and 255 million.
In the third quarter report, demand was described as very strong. This is still the case. If anything, the demand outlook has strengthened further, supporting a positive outlook for 2022, given that the supply constraints gradually ease.
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