Fourth consecutive quarter of improved profits for Kitron

Operating profit (EBIT) was NOK 20.8 million, compared to 2.0 million last year. The improvement is mainly due to a combination of increased revenue and cost initiatives the company implemented during 2014. Net profit amounted to NOK 13.6 million, an improvement from a loss of 1.7 million, influenced by both improved operating profit and currency effects on net financial items. This corresponds to earnings per share of NOK 0.08, compared to a loss of NOK 0.01 last year. Peter Nilsson, Kitron's CEO, comments: "In the first quarter we continued to build on the turnaround that was starting to show results towards the end of 2014. Cost initiatives have taken effect, revenue is growing, and important orders during the quarter contribute to a solid order backlog. We are clearly on a path leading to improved profitability." Fourth consecutive quarter of improved profits The improvements in Kitron's profitability continued in the first quarter. Profitability expressed as EBIT as a percentage of revenue was 4.4 per cent for the quarter, up from 0.5 per cent in the first quarter of 2014. Relative payroll costs went from 29 per cent of revenue to 24 per cent. Other operating costs fell from 7 per cent of revenue to 6 per cent. Non-recurring gains of NOK 3.5 million were booked in the quarter, compared to non-recurring costs of 2.0 million in the first quarter of 2014. Revenue growth fuelled by increased demand in defence Kitron's revenue of NOK 471 represents an increase of 8 per cent compared to the same period last year. Growth adjusted for foreign exchange effects was 4 per cent. The Defence/Aerospace and Industry sectors grew, while Offshore/Marine decreased due to the general adjustment in the oil service market. Strengthened order intake The order backlog was NOK 855 million, an increase of 21 per cent compared to the same time last year. The increase is mainly due to large orders within the Defence/Aerospace sector. Orders received in the quarter were NOK 461 million, an increase of 13 per cent compared to last year. Kitron Norway received important orders from Lockheed Martin and Northrop Grumman. Outlook For 2015, Kitron expects growth and a clear improvement in profitability. Growth is driven by increased demand in the Defence/Aerospace sector for US and Norwegian markets, as well as increases in Energy/Telecoms and Industry. Offshore/Marine will have a reduction due to the oil service market in Norway. ----- NOK 1 = EUR 0.11826