(2015-04-22) Kitron ASA today reported the fourth consecutive quarter of improved profits, due to a combination of growing revenue and cost initiatives.
Kitron's revenue amounted to NOK 471 million, an increase from 436 million in the first quarter of 2014.
Operating profit (EBIT) was NOK 20.8 million, compared to 2.0 million last year. The improvement is mainly due to a combination of increased revenue and cost initiatives the company implemented during 2014.
Net profit amounted to NOK 13.6 million, an improvement from a loss of 1.7 million, influenced by both improved operating profit and currency effects on net financial items.
This corresponds to earnings per share of NOK 0.08, compared to a loss of NOK 0.01 last year.
Peter Nilsson, Kitron's CEO, comments:
"In the first quarter we continued to build on the turnaround that was starting to show results towards the end of 2014. Cost initiatives have taken effect, revenue is growing, and important orders during the quarter contribute to a solid order backlog. We are clearly on a path leading to improved profitability."
- Fourth consecutive quarter of improved profits
- Revenue growth fueled by increased demand in defence
- Strengthened order intake
- Cash flow improved
Fourth consecutive quarter of improved profits
The improvements in Kitron's profitability continued in the first quarter. Profitability expressed as EBIT as a percentage of revenue was 4.4 per cent for the quarter, up from 0.5 per cent in the first quarter of 2014. Relative payroll costs went from 29 per cent of revenue to 24 per cent. Other operating costs fell from 7 per cent of revenue to 6 per cent.
Non-recurring gains of NOK 3.5 million were booked in the quarter, compared to non-recurring costs of 2.0 million in the first quarter of 2014.
Revenue growth fueled by increased demand in defence
Kitron's revenue of NOK 471 represents an increase of 8 per cent compared to the same period last year. Growth adjusted for foreign exchange effects was 4 per cent. The Defence/Aerospace and Industry sectors grew, while Offshore/Marine decreased due to the general adjustment in the oil service market.
Strengthened order intake
The order backlog was NOK 855 million, an increase of 21 per cent compared to the same time last year. The increase is mainly due to large orders within the Defence/Aerospace sector. Orders received in the quarter were NOK 461 million, an increase of 13 per cent compared to last year. Kitron Norway received important orders from Lockheed Martin and Northrop Grumman.
Cash flow improved
Operating cash flow was NOK 35.0 million, compared to minus 17.4 million in the first quarter of 2014. This is primarily related to the improvement in profit. 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/Aerospace 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 at 08:30 a.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=20159763
For further information, please contact:
Peter Nilsson, CEO, Tel: +47 948 40 850 or e-mail: peter.nilsson@kitron.com
Cathrin Nylander, CFO, Tel: +47 900 43 284 or e-mail: cathrin.nylander@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 pursuant to section 5-12 of the Norwegian Securities Trading Act.
