BILLINGSTAD, NORWAY -- Kitron today provided updates on its EMS business situation, saying all factories are operating as normal with no major disruptions.

The company is taking measures for expected component allocations in the future.

"So far, we have seen no major disruption to our business, neither internally nor with regards to suppliers or customers. Our facility in China was affected by the temporary restrictions imposed by the authorities, but it is currently back to normal capacity, and we will increase capacity going forward," said Peter Nilsson, CEO, Kitron. "All other facilities have been operating as normal. All tier-one suppliers in China have restarted operations. There has so far been no major disruptions to supply chains outside China.

"Moving forward, we are preparing for some component allocations and take actions to alleviate such a situation."

“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. In the short term, we have taken strong actions to reduce risks related to the corona situation. Currently all our 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,” Nilsson said.

Kitron will continue its growth strategy, while maintaining robust operating margins and capital discipline. The company maintains it outlined ambitions for 2025: revenue of NOK 5 billion, an EBIT margin of 7% and return on operating capital of 25%. The capacity expansion carried out last year is considered sufficient to reach the 2025 revenue goals.

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