© kitron Electronics Production | October 25, 2017

Kitron’s Q3 report shows continued strong growth

"Kitron continues to gain market share. I see this as a validation of the operational improvements over the past years, which have strengthened competitiveness and efficiency,” says CEO Peter Nilsson.
Kitron's revenue in the third quarter amounted to NOK 535 million (EUR 56.88 million), a 17% underlying growth compared to NOK 463 million (EUR 49.22 million) in the same quarter last year.

“As mentioned before, our margins will wary from quarter to quarter, and the third quarter was affected by restructuring in Norway and a higher share of revenue of products with high material content and therefore lower contribution. However, we remain solidly on track for our 2017 guidance and our strategic ambitions," says Peter Nilsson.

Kitron's revenue for the third quarter increased by 16% compared to the same period last year. Adjusted for foreign exchange effects, the increase was 17%. Growth compared to the same quarter last year was particularly strong in the Industry market sector. Energy/Telecoms also recorded solid growth.

Operating profit (EBIT) was NOK 29.2 million (EUR 3.10 million), compared to NOK 30.1 million (EUR 3.19 million) last year, a decrease of 3%. EBIT margin was 5.5%, compared to 6.5% in the third quarter of 2016. EBITDA was NOK 42.6 million (EUR 4.52 million), an increase of 3% compared to last year. Net profit amounted to NOK 16.4 million (EUR 1.74 million), a decrease from NOK 17.7 million (EUR 1.88 million).

The order backlog ended at NOK 1.008 billion (EUR 107.12 million), an increase of 3% compared to last year. Orders received in the quarter were NOK 535 million (EUR 56.85 million).

Active management of component availability

The demand for electronic components increased in 2017, driven especially by the automotive industry and IoT. However, the electronic components manufacturers' capacity has not increased at the same rate. Kitron has not been markedly affected by this situation during the first three quarters of the year due to the processes and safety stocks put in place with our supply partners.

During the fourth quarter, components availability challenges are expected to escalate. However, Kitron says it does not currently foresee any meaningful loss of revenue. What the company does expect however is some impact on efficiency as production rescheduling is likely to be necessary.


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August 20 2018 3:56 pm V10.1.0-1