Kitron: continued growth outside Norway

Kitron's revenues amounted to NOK 382 million (EUR 45.7 million), an increase from 347 million (EUR 41.5 million) in the third quarter of 2013. EBIT was NOK 6.9 million (EUR 826'143), compared to NOK 7.6 million (EUR 909'955) last year. Net profit amounted to NOK 4.8 million (EUR 574'708), an increase from 3.2 million (EUR 383'139). Operating cash flow was negative NOK 9.7 million (EUR 1.1 million), compared to negative NOK 33.9 million (EUR 4 million). "The situation in Arendal is still challenging, but cost initiatives are improving the outlook. Other units are showing very positive developments. I would particularly like to highlight the important defence orders received by our subsidiary in the United States. This validates our strategy in this segment," interim CEO, Dag Songedal. Growth and improved profitability outside Scandinavia Revenues primarily grew outside Scandinavia. Lithuania, China and the United States collectively grew by 42 percent compared to the third quarter last year and the results have increased over 200 percent over the same period. The increase in the US is due to the above-mentioned orders within the Defence sector. In China growth comes from existing customers primarily in the Industry and Medical sectors ramping up volume. For Lithuania, growth is with existing customers within the Industry sector. The Norwegian operation is restructuring in order to secure a competitive set-up for the future. Several activities are initiated to reduce operational cost and increase profitability, and further actions are evaluated. The current plans imply a reduction of 85 employees during 2014. The full reduction in number of employees will be in effect from year-end 2014, and during the fourth quarter the need for further reductions will be assessed.