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Electronics Production | May 08, 2007

Kitron up 12% in first quarter

Norway's biggest EMS provider Kitron ASA's revenue grew 12 per cent, to NOK 485.7 million, in the first quarter of 2007 compared to the same period in 2006.
Profit before tax was slightly reduced, but the profit rate was better than average for the full year 2006. Kitron is considering various opportunities for expansion to be able to serve both current customer requirements and gain market share.

According to Kitron the EMS market continues its positive development and is expected to grow by about 12 per cent annually during the period up to 2010 according to ETP – The Worldwide Electronics Manufacturing Services Market, Third Edition 2006. The growth is driven by a strong international economy as well as an increasing degree of outsourcing.

Kitron's total order intake during the first quarter amounted to NOK 461 million. This was 4 per cent less than the order intake in the first quarter of 2006. After growing order backlog during 2005 and 2006, the order backlog have stabilised at about six months' revenue.

Microelectronics
Microelectronics technology is increasingly in demand in new areas of application. Kitron is experiencing growth with its existing customers. The demand for assembly of complete products (HLA), ready for delivery to the end customer, is developing positively also in the Microelectronics area. Kitron has a strong offering in the area and is actively seeking growth opportunities.

The growth in Microelectronics during the first quarter came first and foremost in Sweden where Kitron's market offering is still gaining ground. Several customers are continuing their growth and have placed new and expanded production orders with Kitron.

Defence/Marine
Revenue in this market segment was higher than in the corresponding period of 2006, but lower than the exceptionally high revenue in the fourth quarter. Kitron expects higher activity in this market segment this year and the next compared to the level of activity in 2006. The European defence industry is forecasted to grow in the coming year as a result of strong technology focus and development of new equipment.

Data/Telecom

This market segment is also recovering after a comparatively weak first half in 2006. The increasing level of activity in this segment is related to products based on microelectronics technology in network infrastructure as well as conventional products.

Medical equipment

There is high and stable activity in the medical equipment market sector. Kitron enjoys a strong increase in the demand from existing customers. First quarter is seasonally lower than fourth quarter of the preceding year. Kitron AS's assembly line in Horten was set up during the second half of 2006 and operates at prototype stage.

Industry
Kitron's revenue within the Industry segment continued to grow in first quarter. Increased volume on existing products as well as launch of certain new products have generated revenue growth within the market segment.

Click here to download the report (PDF external link).

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