Kitron: Q3 2013 - Strengthened order intake in a challenging quarter
(Thomson Reuters ONE) -
(2013-10-23) Kitron ASA (OSE: KIT) today reported that a strong order intake
during the quarter has increased the order backlog to last year's level. A
decline in revenues led to lower profitability compared to last year. Negative
cash flow development is due to build up of inventories.
Kitron's revenues amounted to NOK 346.6 million, compared to NOK 365.8 million
in the third quarter 2012. EBIT was reduced from NOK 15.4 million to NOK 7.6
million. Net profit amounted to NOK 3.2 million, a decrease from NOK 5.1
million. Operating cash flow for the third quarter was minus NOK 33.5 million,
compared to minus NOK 15.4 million during the third quarter last year.
Dag Songedal, interim CEO, comments:
"This was a mixed quarter for Kitron. Revenue and earnings were lower, but the
order intake strengthened, laying the foundation for growth going forward. We
remain committed to our strategy of expanding in selected markets while
continuing our operational improvement programs."
* Major industrial contract secured
* Weaker demand led to lower profitability
* Kitron invests in Lithuania
* Operational streamlining continues
Major industrial contract secured
The order backlog was strengthened with NOK 101.1 million during the quarter,
and ended at NOK 847.1 million, which is at last year's level. It is primarily
the offshore/marine and industrial segments that have increased.
Kitron ASA has signed an agreement with a leading industrial supplier. The
agreement, which is an extension of a previous contract, covers manufacturing of
electronics and related technical services for automation and power
technologies. The estimated total contract value is NOK 150 million over a
three-year period.
Weaker demand led to lower profitability
In addition to the weaker demand for the quarter, a challenging product mix for
production during the second half of the quarter and changes in technical
specifications from customers have ended up causing production postponements.
The postponed production has a negative impact on the inventory levels and
therefore the primary reason for the negative cash flow of minus NOK 33.5
million, compared to minus NOK 15.4 million the same period last year.
Kitron invests in Lithuania
Kitron invests over 37 million NOK in expansion of the factory in Lithuania. On
top of Kitron's investment, the Ministry of Economy of the Republic of Lithuania
has granted 7 million NOK of financial support. Construction works start in
November 2013 and the project is due to be completed in the second half of 2014.
Operational streamlining continues
The Kitron improvement initiatives, which aim to reduce working capital,
increase overall profitability and stimulate top line growth, continue. Several
actions have been implemented, but the effects on cost and profitability will
not start to be visible before fourth quarter of 2013. The improvement
initiatives will have continuous focus throughout this and the next year.
Outlook
Kitron's markets are mainly Norway and Sweden, but most customers of Kitron sell
their products on international markets, which are still affected by the
turbulence in the US and the European markets, even though Kitron sees some
growth from the existing customers. This, together with ramp-up of manufacturing
for new customers and an increased backlog, indicates growth going into 2014.
For the second half year of 2013 the revenue is expected to be at the same level
as same period of 2012.
Enclosed in pdf are the quarterly report and the presentation.
For further information, please contact:
Dag Songedal, interim CEO
Tel: +47 913 86 468 or e-mail: dag.songedal(at)kitron.com
Cathrin Nylander, CFO
Tel: +47 900 43 284 or e-mail: cathrin.nylander(at)kitron.com
Kitron (OSE: KIT) 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 pursuant to section
5-12 of the Norwegian Securities Trading Act.
KIT Report Q3:
http://hugin.info/197/R/1737264/582550.pdf
KIT Presentation Q3:
http://hugin.info/197/R/1737264/582551.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#1737264]
Unternehmensinformation / Kurzprofil:
Datum: 23.10.2013 - 08:30 Uhr
Sprache: Deutsch
News-ID 308404
Anzahl Zeichen: 5459
contact information:
Town:
Oslo
Kategorie:
Business News
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