The Knowledge Base: Challenges and Considerations of Harsh Environments
Punching Out: Understanding Rollover Equity
Kitron: Q4 2019 - Strong development continues
February 13, 2020 | KitronEstimated reading time: 2 minutes
Kitron today reported solid financial improvements, both for the fourth quarter and full year 2019.
Kitron's revenue for the fourth quarter was NOK 889 million, an increase of 20% compared to last year. Organic growth, excluding the acquisition of the EMS division of API Technologies Corp., was 8%.
The order backlog ended at NOK 1 884 million, an increase of 41% compared to last year. Organic order backlog growth, excluding the API acquisition, was 29%.
Profitability expressed as EBIT margin was 6.1% in the fourth quarter, compared to 5.7% in the same quarter last year.
Peter Nilsson, Kitron's CEO, comments:"We continued to grow both our top line and operating margin in 2019. We also took major strategic steps to increase our capabilities in the US and China, as well as establishing a strong presence in Poland. I am also pleased that we are able to reduce our inventory and improve our working capital metrics. Moving into 2020, we feel confident that Kitron is well prepared for another good year.”
Strong revenue growth
Kitron's revenue in the fourth quarter amounted to NOK 889 million, compared to 739 million in the same quarter last year. Revenue growth compared to the same quarter last year was particularly strong in the Defence/Aerospace sector.
Strong order backlog
The order backlog ended at NOK 1 884 million, compared to 1 335 million last year, and similar to the revenue development the order backlog increase was particularly strong in the Defence/Aerospace market sector.
Improved profitability
Fourth quarter operating profit (EBIT) was NOK 54.2 million, compared to 42.3 million last year. EBITDA was NOK 82.2 million, compared to 54.6 million last year. The effect on fourth quarter EBITDA and EBIT from implementation of the IFRS 16 accounting standard is an increase of NOK 5.6 million and NOK 1.0 million respectively.
Profit after tax amounted to NOK 34.0 million, compared to 27.7 million in the same quarter the previous year. This corresponds to earnings per share of NOK 0.19, up from 0.16 last year.
Full-year growth and profit improvement
Full year revenue of NOK 3 299 million gave an overall revenue growth of 26% for the year. Operating profit for the year ended at NOK 201.5 million, compared to 156.1 million in 2018, resulting in an EBIT margin of 6.1%, compared to 6.0% in 2018. Profit after tax was NOK 132.5 million, up from 110.3 million, corresponding to NOK 0.74 earnings per share, compared to 0.63 in 2018.
The Board of Directors proposes a dividend of NOK 0.50 per share for 2019. Last year Kitron paid a dividend of NOK 0.40 per share.
Working capital ratios improving
Net working capital was NOK 942 million, an increase of 21% compared to the same quarter last year. The ratio of net working capital compared to revenue is improving from the third quarter. Capital ratios are expected to improve going forward.
Outlook
For 2020, Kitron expects revenue to grow to between NOK 3 300 and NOK 3 700 million. The EBIT margin is expected to be between 6.4% and 7.0%. Growth is driven by the Defence/Aerospace and Industry sectors. Profitability is mainly driven by operational improvements in Poland and the U.S.
Share on:
Suggested Items
Jaltek Joins Midlands Aerospace Alliance
03/06/2025 | JaltekJaltek are delighted to officially announce that they have joined the Midlands Aerospace Alliance (MAA). The MAA which was formed in 2003 to support and represent the aerospace industry across the Midlands region, now represents one of the largest aerospace clusters in the world and is one of the strongest advocates for both the aerospace industry and the Midlands region.
Real Time with... IPC APEX EXPO 2025: Navigating Aerospace Training Trends With Blackfox
02/26/2025 | Real Time with...IPC APEX EXPOSharon Montana-Beard, Blackfox Training’s vice president of international and strategic sales, updates Nolan Johnson on the latest training demands and offerings from Blackfox.
Incap UK Installs Vertical Storage System to Optimise PCBA Management
02/24/2025 | IncapIncap UK installed two vertical storage systems to enhance PCBA (Printed Circuit Board Assembly) storage, boosting efficiency, accuracy, and order fulfilment speed. The investment is expected to improve stock handling efficiency by at least 40%.
Summit Interconnect Welcomes Leo LaCroix as Vice President of Aerospace & Defense Operations
02/21/2025 | Summit Interconnect, Inc.Summit Interconnect, a leading provider of advanced printed circuit board (PCB) solutions, is pleased to announce that Leo LaCroix has joined the company as Vice President of Aerospace & Defense Operations. In this role, LaCroix will oversee operational strategy, customer engagement, and manufacturing excellence for Summit’s aerospace and defense-focused facilities, driving continued growth and innovation in the sector.
FTG Announces Full Year and Q4 2024
02/20/2025 | Firan Technology Group CorporationDuring 2024, the Corporation invested in existing sites and grew the business organically. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. Specifically, FTG accomplished many goals in 2024 that continue to improve the Corporation and position it for the future, including: