© adam121 Electronics Production | October 26, 2016

Kitron: Q3 margin improvements on track

Norwegian EMS provider Kitron ASA reported third quarter revenues of NOK 463 million (EUR 51.22 million), compared to NOK 468 million (EUR 51.78 million) in the third quarter last year.
Operating profit (EBIT) was NOK 30.1 million (EUR 3.33 million), compared NOK 26.3 million (EUR 2.9 million) last year.

Net profit amounted to NOK 17.7 million (EUR 1.95 million), a decrease from 22.8 million (EUR 2.52 million). The company explains the decrease by a change in net finance related to non-cash currency effects.

“We had some issues on the top line this quarter, due to postponements into the coming quarters. However, our work on operational improvements progressed well, resulting in a positive development of operating profit and cash flow. This, combined with a strong order backlog, gives me confidence in the coming quarters,” commented CEO Peter Nilsson.

Stable revenue, solid order backlog
Kitron's revenue in the third quarter was 1% lower than last year. Adjusted for foreign exchange effects, the decline was 2%. The third quarter sales were affected by normal seasonality while the seasonality last year was unusually weak. In addition, some customer projects were postponed.

The order backlog ended at NOK 980 million (EUR 108.43 million), an increase of 7% compared to last year. Profitability expressed as EBIT margin was 6.5% for the quarter, compared to 5.6% in the third quarter of 2015.

Improved capital efficiency
Net working capital was reduced by 8% from the same quarter last year. Operational cash flow was NOK 36.4 million, compared to 32.7 million last year.


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