BILLINGSTAD, NORWAY -- Multinational EMS provider Kitron reported first-quarter profits plunged 86% to NOK 1.38 million ($236,000) on weaker demand in Europe and delays at its US operations.

Revenue for the period fell 10.6% to NOK 378.3 million ($64.6 million). EBIT plunged to NOK 4 million from NOK 21.5 million. The contract electronics assembler reported negative operating cash flow of NOK 18.1 million.

Lower demand from US defense OEMs has delayed the startup of Kitron's US operation. Once expected to reach breakeven by the current quarter, the outlook is now uncertain, the company said.

During the period, Kitron reorganized purchasing into a global organization under its chief operating officer. It also took certain cost-reduction measures and said headcount reductions cannot be ruled out.

Industrial, medical, offshore/marine and defense are Kitron's four largest sectors, at 27%, 25%, 19% and 18%, respectively.

1 NOK = 0.170825 USD