Kitron: Q2 2015 - Profitability improvement continued
(Thomson Reuters ONE) -
(2015-07-16) Kitron ASA today reported the fifth consecutive quarter of improved
profits, due to a combination of growing revenue and better margins.
Kitron's revenue in the second quarter amounted to NOK 489 million, an increase
from 457 million in the second quarter last year.
Operating profit (EBIT) was NOK 22.1 million, compared to 6.9 million last year.
The improved results are a consequence of increased revenue and better margins,
helped by growing service sales.
Net profit amounted to NOK 13.3 million, an improvement from 3.9 million. This
corresponds to earnings per share of NOK 0.08, compared to NOK 0.02 last year.
Peter Nilsson, Kitron's CEO, comments:
"The second quarter confirms that Kitron is continually improving operations and
financial results. Important orders, particularly within the Defence and
Aerospace sector, give cause for optimism. Going forward, we will implement
plans to ensure that operational metrics and margins improve even further."
* Fifth consecutive quarter of improved profits
* Continued strong development in Defence
* Important new orders in Defence and Aerospace
* Cash flow significantly improved
Fifth consecutive quarter of improved profits
The improvements in Kitron's profitability continued in the second quarter.
Profitability expressed as EBIT as a percentage of revenue was 4.5 per cent for
the quarter, up from 1.5 per cent in the second quarter of 2014. The improved
results are a consequence of increased revenue and better margins, where there
has been strong contribution from the service sales, both from development and
engineering.
Continued strong development in Defence
Revenue in the market sector Defence/Aerospace increased by 56 per cent from the
second quarter last year. Energy/Telecom and Industry also grew, while Medical
equipment declined slightly. Offshore/Marine was down 45 per cent due to the
weak oil service market in Norway.
Important new orders in Defence and Aerospace
During the quarter Kitron has received several significant orders, particularly
within the Defence/Aerospace sector, for instance from Kongsberg Defence &
Aerospace and from Saab AB (Business Unit Avionics Systems).
Total order backlog was NOK 830 million, compared to NOK 859 million at the same
time last year. Growth in Data/Telecom and Medical sectors offset reductions in
the Offshore/Marine Sector.
Cash flow significantly improved
Operating cash flow was NOK 48.6 million, compared to 9.5 million in the second
quarter of 2014. This is primarily related to the improvement in profit and
development of working capital. Working capital reduction actions continue to be
in focus.
Outlook
For 2015, Kitron expects growth and a clear improvement in profitability. Growth
is driven by increased demand in the Defence sector for US and Norwegian
markets, as well as increases in Energy/Telecoms and Industry. Offshore/Marine
will have a reduction due to the oil service market in Norway.
Enclosed in PDF are the quarterly report and the presentation.
The interim report is presented today at 2:00 p.m. CEST at Kitron ASA's head
office, Olav Brunborgs vei 4, Billingstad.
The presentation will be given in English by CEO Peter Nilsson and CFO Cathrin
Nylander, and will be distributed through webcast at the same time at the
following link:
http://webtv.hegnar.no/presentation.php?webcastId=21823513
For further information, please contact:
Peter Nilsson, CEO, Tel: +47 948 40 850 or e-mail: peter.nilsson(at)kitron.com
Cathrin Nylander, CFO, Tel: +47 900 43 284 or e-mail:
cathrin.nylander(at)kitron.com
Kitron is one of Scandinavia's leading electronics manufacturing services
companies for the Defence/Aerospace, 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 1.75 billion in 2014 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 Report Q2 2015:
http://hugin.info/197/R/1937624/699587.pdf
Kitron Q2 2015 presentation:
http://hugin.info/197/R/1937624/699589.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1937624]
Unternehmensinformation / Kurzprofil:
Datum: 16.07.2015 - 13:30 Uhr
Sprache: Deutsch
News-ID 407335
Anzahl Zeichen: 5283
contact information:
Town:
Oslo
Kategorie:
Business News
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