Kitron Reports 35% Drop in Q4 Sales
BILLINGSTAD, NORWAY – Kitron, a top 40 global EMS company, reported fourth-quarter revenue of NOK 423.9 million, down 35.3% from the same period last year.
The net profit was NOK 12.9 million, down from 63.5 million a year ago. The current results include a loss from discontinued operations of NOK 2.89 million.
The pretax profit was NOK 12.8 million, down from NOK 59 million. Cash flow from operations was NOK 62.3 million, roughly flat with last year’s NOK 66.5 million. Orders fell 17% to NOK 454.7 million and backlogs dropped 18.1% to NOK 795.8 million.
Defense sales were down 44.1%, data/telecom was down 38.5%, medical equipment was off 15.3% and industrial decreased 40.3%.
“While the activity level in fourth quarter [was] lower, we see a stable trend toward improved market conditions quarter by quarter,” Kitron said. “The slow but steady improvement in the order backlog continued in Q4 and is another sign of the improved market conditions.”
Kitron said it would set up a second operation in China to expand market coverage. The new unit will start manufacturing in the second half of 2010. It also will divest its development department and enter a strategic alliance with a dedicated development company.
