Kitron: Q1 2017 - Strong revenue growth and improved profitability
(Thomson Reuters ONE) -
(2017-04-26) Kitron ASA today reported strong revenue growth and improved
profitability for the first quarter.
Kitron's revenue in the first quarter amounted to NOK 585 million, compared to
497 million in the same quarter last year. Operating profit (EBIT) was NOK 30.9
million, compared 20.5 million last year.
Net profit amounted to NOK 21.6 million, an increase from 10.0 million. This
corresponds to earnings per share of NOK 0.12, compared to NOK 0.06 last year.
Peter Nilsson, Kitron's CEO, comments:
"While growth, both on the top and bottom line, was unusually strong this
particular quarter, the main message is that the quarterly figures confirm the
underlying progress that Kitron has made over the past couple of years. The
order backlog is solid and the main production facilities are now updated and
highly competitive, supporting our outlook for the rest of 2017."
Very strong growth
Kitron's revenue for the first quarter increased by 18 per cent compared to the
same period last year. Adjusted for foreign exchange effects, the increase was
23 per cent. Growth compared to the same quarter last year was particularly
strong in the Defence/Aerospace market sector. Industry and Energy/Telecoms also
recorded solid growth.
Improved profitability
Operating profit (EBIT) for the first quarter was NOK 30.9 million, an increase
of 51 per cent. Profitability expressed as EBIT margin was 5.3 per cent,
compared to 4.1 per cent in the first quarter of 2016. EBITDA was NOK 42.7
million, an increase of 36 per cent compared to last year.
Solid order backlog
The order backlog ended at NOK 1 059 million, an increase of 17 per cent
compared to last year. Orders received in the quarter were NOK 620 million.
Improved capital efficiency
Net working capital increased by 6 per cent from NOK 522 million to NOK 553
million compared to the same quarter last year, continuing the trend of
decreasing net working capital compared to revenue. Operating cash flow was
negative NOK 15.4 million, compared to negative 25.3 million in the first
quarter 2016.
Key defence orders
During the quarter, Kitron reported two key defence orders. Kitron received a
NOK 120 million order from Kongsberg Defence Systems (KONGSBERG) for military
communications equipment. Manufacturing and technical services will be provided
by Kitron in Arendal, and deliveries will take place from 2017 to 2020. Further,
Kitron signed an agreement with Rheinmetall MAN Military Vehicles. The potential
contract value is NOK 250 million over a five-year period. The agreement covers
manufacturing of electronics, measuring instruments and control devices. The
production will take place at Kitron's plant in Kaunas, Lithuania.
Modern facility and new MD in Sweden
Kitron Sweden has relocated to the new-built facility in Torsvik. While the move
was completed according to budget and without significant technical problems,
some temporary inefficiencies impacted profitability in the first quarter. In
March, Stefan Hansson Mutas assumed the role of Managing Director of Kitron
Sweden.
Outlook
For 2017, Kitron expects revenue to grow to between NOK 2 150 and 2 350 million.
The EBIT margin is expected to be between 5.6 and 6.4 per cent. The growth is
primarily driven by customers in the Industry sector. The profitability increase
is driven by cost reduction activities and improved efficiency.
Enclosed in PDF are the quarterly report and the presentation.
The interim report is presented today at 8:30 a.m. CEST. The presentation will
be given in English by CEO Peter Nilsson and CFO Cathrin Nylander, and will be
webcast at the following link:
http://webtv.hegnar.no/presentation.php?webcastId=51444445
For further information, please contact:
Peter Nilsson, CEO of Kitron ASA, Tel: +47 948 40 850
Cathrin Nylander, CFO of Kitron ASA, Tel: +47 900 43 284
E-mail: investorrelations(at)kitron.com
Kitron is one of Scandinavia's leading electronics manufacturing services
companies for the Defence/Aerospace, Energy/Telecoms, Industry, Medical devices
and Offshore/Marine sectors. The company is located in Norway, Sweden,
Lithuania, Germany, China and the United States. Kitron had revenues of about
NOK 2.1 billion in 2016 and has about 1 350 employees. www.kitron.com
This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.
Kitron Presentation Q1 2017:
http://hugin.info/197/R/2098067/795021.pdf
Kitron Report Q1 2017:
http://hugin.info/197/R/2098067/795020.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kitron ASA via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.04.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 538367
Anzahl Zeichen: 5475
contact information:
Town:
Oslo
Kategorie:
Business News
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