(2013-07-23) Despite challenging markets, Kitron's revenues grew and the cash flow from operations rose compared to the second quarter last year. Initiatives that aim to reduce working capital, increase overall profitability and stimulate to top line growth continue.
| * Stable customer demand | * Improved cash flow from operations |
| * Operational streamlining continues | * Change in management |
Kitron's revenue for second quarter amounted to NOK 430.3 million, a 3.3 per cent increase compared with the same period last year. EBIT was reduced from NOK10.6 million to NOK 9.3 million for the second quarter. Operating cash flow for second quarter was NOK 29.2 million compared to minus NOK 16.1 million the same period last year.
For the first half of 2013, Kitron's revenue amounted to NOK 808.6 million, a 6.7 per cent decrease compared to first half last year. EBIT was reduced from NOK 32.1 million to NOK 13.2 million for the first half of 2013. Operating cash flow for the first half year was NOK 11.0 million compared to minus 27.0 million for the first half last year.
Stable customer demand
Despite challenging markets in both the USA and Europe, Kitron's revenues grew this quarter compared to the same quarter last year. Within Kitron's markets segments we saw a mixed picture. The industry segment performed well. Key customers indicate a modest growth and new customers are in a ramp-up phase. We therefore expect stable development in this segment. The medical segment is less sensitive to the development in the global economy, and we foresee a long-term positive development in this market. On the other hand, economic uncertainty affects other segments, such as defence.
Operational streamlining continues
Kitron experienced lower profitability in the first half of 2013 because of weaker customer demand.
In first quarter 2013, Kitron introduced several improvement initiatives that aim to reduce working capital, increase overall profitability and stimulate to top line growth. In the second quarter, several actions have been implemented, but the effects on cost and profitability will not be fully visible before fourth quarter in 2013. The improvement initiatives will have continuous focus throughout 2013.
Improved cash flow from operations
The cash flow from operations was improved by NOK 45.3 million compared to second quarter last year. This comes as a result of strong focus on planning, inventory management and other items affecting operating cash flow.
Change in management
During the second quarter, the former CEO resigned and Dag Songedal was appointed as interim CEO. Dag Songedal has been Managing Director in Kitron AS since 2008.
Enclosed in pdf are the quarterly report and the presentation.
For further information, please contact:
Dag Songedal, interim CEO of Kitron ASA, tel.: +47 91386468, or e-mail: dag.songedal@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).
