BILLINGSTAD, NORWAY -- Kitron, a Top 50 EMS firm, swung to a second-quarter profit of NOK 5.45 million ($839,000), from a loss a year ago of NOK 2.95 million.

For the period ended June 30, the contract printed circuit board assembler reported revenue of NOK 430.7 million ($79.3 million), up 1.2% from the same period last year. The company said drops in medical, telecom and defense programs were offset by higher demand for industrial and marine products.

Earnings before income taxes (EBIT) rose to NOK 13.8 million, up from NOK 4.5 million last year, on improved margins at the company's Sweden operations. The profit before tax and discontinued operations was NOK 8.3 million (NOK 1.7 million). Cash flow from operations was NOK 32.4 million, up from a loss of NOK 13.7 million.

Order volume dropped 22% to NOK 395 million and backlogs fell 10% to NOK 781.4 million as several customers reduced lead times as component supplies stabilized.

Kitron took one-time net charges of NOK 5.5 million during the quarter, primarily related to a restructuring in Sweden and startup costs in China and the US. The pretax operating margin was 1.9%, up 150 basis points.

During the quarter, the Medical segment (NOK 128 million) was the company's largest, followed by Industrial (NOK 102 million), defense (NOK 99 million) and Energy/Telecom (NOK 55 million).

Year to date through June 30 revenue is up 2.8% from 2010.

Kitron's expansion efforts are on schedule, the company said, with its first orders in hand from its Germany site, its US plant opening this quarter and its factory in China ready to launch in the third quarter. Each of its existing factories in Norway, Lithuania and Sweden were profitable during the quarter. The new sites are expected to be profitable in 2012.

Ed.: 1 NOK = 0.184137 USD

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