Kitron: Weaker demand led to lower profitability

Kitron's revenue amounted to NOK 378.3 million in the first quarter of 2013, a 16.0 % decrease compared with the same period last year. EBIT was reduced from NOK 21.5 million to NOK 4.0 million. Operating cash flow for the first quarter was negative by NOK 18.1 million compared to minus NOK 10.9 million same period last year. Lower demand from key customers During Q1 there has been a negative trend in the demand from several key customers. The recessionary trend in the European market is the main explanation for this development. In addition the demand in the US defence segment has been significantly lower than previously expected, the company writes in a statement. Kitron is now looking to capture new customers and entering new markets, with the hope that this focus will have a positive impact in the long run. Delay in US break-even Due to the lower demand from the US defence sector there is a delay in the start-up of the US operation. While it was previously expected to reach break-even in Q2 2013 the outlook is now uncertain, the company concludes.