Kitron's 3Q impacted by challenging markets
EMS provider Kitron says that its third quarter was impacted by challenging markets – but also that it has taken actions to adapt to market shifts by leveraging its global capabilities.
Kitron's revenue for the third quarter was EUR 145.1 million, a clear difference from EUR 179.2 million during the same quarter last year. The company says in a press release that there was growth within the Defence/Aerospace and Medical devices market sectors, while other market sectors declined.
Operating profit (EBIT) was EUR 10.7 million, compared to 16.2 million last year. EBITDA was EUR 15.3 million, compared to 20.7 million a year ago.
The order backlog ended at EUR 457.7 million, a decrease of 9% compared to last year but an increase of 1% from the preceding quarter.
“The Nordic and U.S. markets continue to show strength with close to double-digit growth, but the continued economic slowdown in Europe has softened regional demand. However, not all markets tell the same story. Some global segments remain resilient, and we observe a notable rebound in specific segments within China. We are meeting these shifts through program transfers between our sites to optimize our resources,” says Kitron's CEO Peter Nilsson in the press release.
The CEO goes on to state that Kitron remains optimistic about its long-term growth potential in spite of the challenges posed by the current economic environment.
Profit after tax for the period amounted to EUR 6.1 million, compared to 9.7 million in the same quarter the previous year.
For 2024, Kitron expects revenue to be between EUR 635 and 660 million with an operating profit (EBIT) between EUR 44 and 50 million – including EUR 4.8 million in restructuring costs in the first quarter.
