Kitron's Q3 Results Reflect Global Market Dynamics

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Kitron reported quarterly figures that are impacted by challenging markets but also demonstrate actions taken to adapt to market shifts by leveraging the group’s global capabilities.

Kitron's revenue for the third quarter was EUR 145.1 million, compared to 179.2 million last year. There was growth within the Defence/Aerospace and Medical devices market sectors, while other market sectors declined.

Operating profit (EBIT) was EUR 10.7 million, compared to 16.2 million last year. EBITDA was EUR 15.3 million, compared to 20.7 million last year.

Profitability expressed as EBIT margin was 7.4 per cent, compared to 9.0 per cent last year.

The order backlog ended at EUR 457.7 million, a decrease of 9 per cent compared to last year but an increase of 1 per cent from the preceding quarter.

Peter Nilsson, Kitron's CEO, comments:

“The Nordic and U.S. markets continue to show strength with close to double-digit growth, but the continued economic slowdown in Europe has softened regional demand. However, not all markets tell the same story. Some global segments remain resilient, and we observe a notable rebound in specific segments within China. We are meeting these shifts through program transfers between our sites to optimize our resources. Despite the headwinds presented by the current economic climate, we remain steadfastly optimistic about our long term growth prospects. Our commitment to operational excellence, cost competitiveness, and innovation positions us strongly to deliver sustainable performance in the quarters ahead.”

Profit after tax amounted to EUR 6.1 million, compared to 9.7 million in the same quarter the previous year. This corresponds to earnings per share of EUR 0.03, compared to 0.05 last year.

Capital efficiency temporarily affected by lower revenue

Operating cash flow in the third quarter was EUR 2.2 million, compared to 2.5 million in the same quarter last year.

Net working capital was EUR 183 million, a decrease of 8 per cent compared to the same quarter last year. Net working capital as a percentage of revenue was 31.0 per cent compared to 26.7 per cent last year.

Outlook

For 2024, Kitron expects revenue to be between EUR 635 and 660 million with an operating profit (EBIT) between EUR 44 and 50 million, including EUR 4.8 million in restructuring costs in the first quarter.