© Kitron Electronics Production | July 11, 2019
All-time high operating profit for Kitron in 2Q19
Kitron is reporting strong growth and record operating earnings in the second quarter, led by the Defence/Aerospace and Offshore/Marine market sectors.
The EMS provider’s revenue for the second quarter was NOK 860 million (EUR 89.29 million), an increase of 29% compared to last year. Organic growth, excluding the acquisition of the EMS division of API Technologies Corp., was 19%. The order backlog ended at NOK 1,453 million (EUR 150.54 million), an increase of 44% compared to last year. Organic order backlog growth, excluding the API acquisition, was 28%. Kitron’s EBIT margin was 6.6% in the second quarter, compared to 6.8% in the same quarter last year. “The second quarter was characterized by strong growth, leading to record revenues. Meanwhile, we have been preparing to handle further growth through our announced capacity expansions in the US, Poland and China. I am also happy that the challenging component situation in the industry is now improving, and this is expected to gradually reduce working capital over the coming quarters,” says Cathrin Nylander, Kitron's CFO and acting CEO, in a press release. Kitron's revenue in the second quarter amounted to NOK 860 million (EUR 89.29 million), compared to NOK 667 million (EUR 69.25 million) in the same quarter last year. All market sectors grew. In absolute numbers, second quarter revenue growth compared to the same quarter last year was particularly strong in the Defence/Aerospace and Offshore/ Marine market sectors. Profit after tax amounted to NOK 36.3 million (EUR 3.76 million), compared to 34.5 million (EUR 3.58 million) in the second quarter the previous year. Operating cash flow was NOK 45.7 million (EUR 4.74 million), compared to 42.7 million (EUR 4.43 million) in the second quarter of 2018.