Kitron: Q1 2018 - Solid growth and improved profitability
April 20 2018 - 2:00AM
(2018-04-20) Kitron today reported quarterly
figures that demonstrate continued growth and improved
profitability.
Kitron's revenue in the first quarter increased by
11 per cent. Profitability expressed as EBIT margin was 6.0 per
cent, compared to 5.3 per cent in the first quarter of 2017.
Peter Nilsson, Kitron's CEO,
comments:
"We're seeing demand increase in all regions and most market
sectors. The solid growth and improved profitability in the first
quarter indicates that we are on track for our 2018 outlook and our
strategic ambitions. Service sales accounted for close to 9 per
cent of revenue in the quarter. In the first quarter, Kitron won
more than 30 new programs worth more than NOK 230 million of
annualized revenue, compared to NOK 75 million in the same quarter
last year. 70 per cent of the programs came from existing
customers while the other 30 per cent came from new customers."
Solid revenue
growth
Kitron's revenue in the first quarter amounted to NOK 651 million,
compared to 585 million in the same quarter last year, an increase
of 11 per cent. Adjusted for foreign exchange effects, the increase
was 9 per cent.
Revenue growth compared to the same quarter last
year was particularly strong in the Industry market sector.
Order backlog increased by 10 per cent on a
comparable basis. After adjustment for the introduction of the new
IFRS 15 accounting rules, the order backlog ended at NOK 1 025
million.
Improved
profitability
Operating profit (EBIT) was NOK 39 million, compared to 31 million
last year, an increase of 26 per cent. EBITDA was NOK 53 million,
an increase of 24 per cent compared to last year. Net profit
amounted to NOK 26 million, an increase from 22 million. This
corresponds to earnings per share of NOK 0.15, compared to NOK 0.12
last year.
More efficient use of
capital
Net working capital decreased by 5 per cent compared to the same
quarter last year to NOK 526 million, continuing the trend of
decreasing net working capital compared to revenue. Operating cash
flow was negative NOK 19 million, compared to negative 15 million
in the first quarter 2017.
Active management of component
availability
Shortages of electronic components made 2017 a challenging year for
many companies in the Electronics Manufacturing Services business.
These challenges have continued into 2018 and are expected to last
throughout the year. Kitron's timely and systematic approach
combined with its preferred partner program has prevented serious
supply disruptions. In spite of challenges in the supply chain
Kitron aims to reduce material cost in the same manner as achieved
over the past three years.
New accounting
standard
Kitron implemented the new accounting standard IFRS 15 "Revenue
from Contracts with Customers" from 1 January 2018. In the first
quarter, this had minimal effect on revenue and profits, but it
reduced the order backlog. It also affected certain balance sheet
items. See the quarterly report for details
Outlook
For 2018, Kitron expects revenue to grow to between NOK 2 500 and 2
700 million. The EBIT margin is expected to be between 6.1 and 6.5
per cent. Growth is primarily driven by customers in the Industry
and Energy sectors. Profitability is driven by cost reduction
activities and improved efficiency.
Enclosed in PDF are the quarterly report and the
presentation.
The interim report is presented today at 8:30 a.m.
CEST. The presentation will be given in English by CEO Peter
Nilsson and CFO Cathrin Nylander, and will be webcast at the
following link:
http://webtv.hegnar.no/presentation.php?webcastId=83473890
For further information, please
contact:
Peter Nilsson, CEO, tel: +47 948 40 850
Cathrin Nylander, CFO, tel: +47 900 43 284
E-mail: investorrelations@kitron.com
Kitron is one of
Scandinavia's leading electronics manufacturing services companies
for the Defence/Aerospace, Energy/Telecoms, Industry, Medical
devices and Offshore/Marine sectors. The company is located in
Norway, Sweden, Lithuania, Germany, China and the United States.
Kitron had revenues of about NOK 2.4 billion in 2017 and has about
1 450 employees. www.kitron.com
This information is subject to the disclosure
requirements pursuant to section 5 -12 of the Norwegian Securities
Trading Act.
Kitron Presentation Q1 2018
Kitron Report Q1 2018
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Kitron ASA via Globenewswire