BILLINGSTAD, NORWAY – Kitron reported second quarter revenue of NOK 1.04 billion (US$110.6 million), an increase of 21% year-over-year. Growth adjusted for currency effects was 11%.
Profit after tax was NOK 64.3 million, up 77.1% year-over-year. Operating profit was NOK 88 million, up 56%. EBITDA was NOK 113.8 million, an increase of 51.5%.
The order backlog ended at NOK 2.1 billion, up 45% compared to the second quarter of 2019. The order backlog increased within all market sectors except offshore/marine. Growth was particularly strong in medical devices.
"This was a record quarter for Kitron in terms of revenue, profitability and order backlog,” said Peter Nilsson, Kitron's CEO. “Revenue is driven by a robust underlying demand within defense/aerospace, medical and industry sectors. Strong performance in all Kitron sites contributed to the profitability of 8.5%. Our third and fourth quarter outlook leaves us confident in reaching our upgraded full-year 2020 targets. Our third quarter is expected to be particularly strong, and the fourth quarter should settle on a more normalized level.”
Operating cash flow for the second quarter was NOK 5.5 million, compared to 53.5 million in the second quarter of 2019.
While reducing inventory levels remains a key ambition for Kitron in the coronavirus pandemic situation, holding more inventory has been important to safeguard the company's ability to serve customers, not least within medical devices. Longer term, capital ratios are expected to improve going forward.
Strong demand is expected to continue in defense/aerospace, industry and medical device sectors. Demand within the medical device sector is expected to be particularly strong during the third quarter and normalize in the fourth quarter.
For 2020, Kitron now expects revenue of between NOK 3.5 billion and NOK 3.8 billion.
Ed.: NOK 1 = US$0.11