BILLINGSTAD, NORWAY – Kitron reported first quarter revenue was NOK 813 million ($94.1 million), an increase of 25% year-over-year. All market sectors grew.

Profit after tax was NOK 37.5 million, up 43.1% year-over-year. Operating profit was NOK 51.2 million, an increase of 32%. EBITDA was NOK 68.6 million, up 29.4%.

The order backlog ended at NOK 1.5 billion, up 43% compared to the same period last year.

"The record performance in the first quarter demonstrated our ability to successfully combine organic growth and M&A with operational and earnings improvements,” said Cathrin Nylander, CFO and acting CEO, Kitron. “In 2019 we will significantly increase our capacity in the US and Poland. On the demand side, the anticipated upturn among customers in the oil and gas industry is gathering momentum and boosting growth. All these factors strengthen our confidence in the new strategic ambitions that we outlined at our capital markets day in March.”

Component shortages have been an ongoing issue for the EMS industry over the past quarters, Kitron says. The situation is expected to be less challenging throughout 2019, and Kitron expects a gradual improvement over the year will lead to a reduction of working capital, both in absolute numbers and as a percentage of revenue.

In the first quarter, Kitron completed the acquisition of the EMS division of API Technologies.

For 2019, Kitron expects revenue to grow to between NOK 2.9 billion and 3.2 billion.

Ed.: NOK 1 = US$0.12