Kitron maintains ambitions & outlook amidst COVID-19 outbreak

During a conference call, the company presented an update on its operations and progress towards the strategic and financial targets, and at the same time Kitron provided an update on the short-term situation relating to the coronavirus. “Over the past year, we have made excellent progress along the path we set last year towards 2025, integrating a new business in the US, opening a new factory in Poland and expanding our capacity in China,” Peter Nilsson continued. In the short term, Kitron says it has taken strong actions to reduce risks related to the COVID-19 situation. Currently all its facilities are operating as normal. “Based on what we currently know, we seem to be on track for our 2020 outlook. However, uncertainty might give higher volatility in the months to come. But so far, demand remains strong and stable,” the CEO continues. As stated earlier, the company maintains it outlined ambitions for 2025, revenues of NOK 5 billion (EUR 408 million), an EBIT margin of 7% and return on operating capital of 25%. According to the company, the capacity expansion which was carried out last year is considered tp be sufficient to reach the 2025 revenue ambitions. COVID-19 situation So far, Kitron says it haven't seen any major disruption to its business, neither internally nor with regards to suppliers or customers. The company’s facility in China was affected by the temporary restrictions imposed by the authorities, but it is currently back to normal capacity, and is expected to increase capacity going forward. All other facilities have been operating as normal. “Moving forward, we are preparing for some component allocations and take actions to alleviate such a situation,” the company states.