Standard of Excellence: Delivering Excellence—A Daily Goal
Knocking Down the Bone Pile: Tin Whisker Mitigation in Aerospace Applications, Part 3
The Knowledge Base: Building the Workforce of Tomorrow With EMAC
Kitron Posts Record Revenue and Profitability for Q2 2023
July 13, 2023 | KitronEstimated reading time: 2 minutes
Kitron reported record revenue and profitability for the second quarter, lifted the outlook for the full year and announced capacity expansions.
Kitron’s revenue for the second quarter was EUR 206.3 million, compared to 157.3 million last year. Growth was particularly strong within the Electrification market sector.
Second-quarter operating profit (EBIT) was EUR 19.2 million, compared to 9.9 million last year. EBITDA was EUR 23.5 million, compared to 14.2 million last year.
The order backlog ended at EUR 535 million, an increase of 13 per cent compared to last year, reflecting continued strong demand. The highest growth was in the market sectors Electrification and Defence & Aerospace. However, the order backlog is lower than in the preceding quarter as the gradually improving electronic component situation has reduced lead times.
Peter Nilsson, Kitron’s CEO, comments:
“Our second quarter 2023 performance is once again record-breaking, demonstrating our adaptability in a challenging economic landscape. We also see new business opportunities, for instance driven by the electrification megatrend and by a growing trend of capacity diversification outside of China. We are now investing in new facilities in the Czech Republic and Malaysia to seize these opportunities.”
Profitability expressed as EBIT margin was 9.3 per cent in the second quarter, compared to 6.3 per cent in the same quarter last year.
Profit after tax amounted to EUR 15.7 million, compared to 6.6 million in the same quarter the previous year. This corresponds to earnings per share of EUR 0.08, up from 0.03 last year.
Improved capital efficiency
Operating cash flow in the second quarter was EUR 9.0 million, compared to 4.0 million in the second quarter of 2022.
Net working capital was EUR 189 million, an increase of 9 per cent compared to the same quarter last year. Net working capital as a percentage of revenue was 22.3 per cent compared to 27.8 per cent last year. Capital efficiency ratios have improved, and this trend is expected to continue.
New facilities in the Czech Republic and Malaysia
Due to increased demand, Kitron will add production capacity towards the end of 2023 in the Czech Republic and Malaysia. The Czech facility will support increased volumes within the Electrification market sector. The Malaysian facility will diversify our Asian offering outside China.
Outlook
For 2023, Kitron has previously indicated a revenue outlook of between EUR 700 and 800 million and an operating profit (EBIT) between EUR 60 and 75 million. Entering the second half of 2023, demand continues to be strong, and capital efficiency ratios are improving. We now expect revenues between 750 and 800 EUR million with an operating profit (EBIT) between 65 and EUR 75 million.
Share on:
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.