Kitron: Weaker demand led to lower profitability
(Thomson Reuters ONE) -
(2013-04-22) Kitron's revenue amounted to NOK 378.3 million in the first quarter
of 2013, a 16.0 per cent decrease compared with the same period last year. EBIT
was reduced from NOK 21.5 million to NOK 4.0 million. Operating cash flow for
the first quarter was negative by NOK 18.1 million compared to minus NOK 10.9
million same period last year.
* Lower demand from key customers * Delay in US
operations
* Operational streamlining continues * Cost
reductions initiated
Weaker demand led to lower profitability in the first quarter 2013. Kitron has
introduced a wide range of initiatives that aim to increase profitability and
stimulate top line growth.
Lower demand from key customers
During Q1 there has been a negative trend in the demand from several key
customers. The recessionary trend in the European market is the main explanation
for this development. In addition the demand in the US defence segment has been
significantly lower than previously expected.
Kitron has a strong focus on driving growth through capturing new customers and
entering new markets. In the long term these effects are expected to have a
positive impact.
Delay in US break-even
Due to the lower demand from the US defence sector there is a delay in the
start-up of the US operation. While it was previously expected to reach break-
even in Q2 2013 the outlook is now uncertain.
Operational streamlining continues
Kitron has introduced a wide range of improvement initiatives to increase
profitability, reduce capital and stimulate top line growth. These measures span
the entire value chain, and include inventory reduction, manufacturing
efficiency improvements and supply chain optimization.
As part of the operational streamlining, Kitron launched a new organization in
April. All manufacturing and supply chain activities will be organized in a
global organization under the Chief Operating Officer (COO) while the customer
delivery organization will be organized in three business areas. The purpose is
to create a more customer centric organization while driving global
standardization in the manufacturing and supply chain processes.
Cost reductions initiated
Cost reduction measures have been initiated in response to a market that is
weaker than expected. Management is in process to evaluate further measures to
be taken. As a large proportion of the costs is personnel related, headcount
reductions can not be ruled out.
Enclosed in pdf are the quarterly report and the presentation.
For further information, please contact:
Jørgen Bredesen, CEO of Kitron ASA, tel.: +47 482 52 584, or e-mail:
jorgen.bredesen(at)kitron.com
Björn Wigström, CFO of Kitron ASA, tel.: +47 905 31 304, or e-mail:
bjorn.wigstrom(at)kitron.com
Kitron is one of Scandinavia's leading electronics manufacturing services
companies for the Defence, Energy/Telecoms, Industry, Medical equipment and
Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania,
Germany, China and the United States. Kitron had revenues of about NOK 1.7
billion in 2012 and has about 1,200 employees. www.kitron.com
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act).
Kitron Q1 2013 Report:
http://hugin.info/197/R/1694774/557454.pdf
Kitron Q1 2013 Presentation:
http://hugin.info/197/R/1694774/557456.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kitron ASA via Thomson Reuters ONE
[HUG#1694774]
Unternehmensinformation / Kurzprofil:
Datum: 22.04.2013 - 14:31 Uhr
Sprache: Deutsch
News-ID 251345
Anzahl Zeichen: 4545
contact information:
Town:
Oslo
Kategorie:
Business News
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