Kitron: Revenue growth in second quarter

Initiatives that aim to reduce working capital, increase overall profitability and stimulate to top line growth continue. 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.