OSLO – Kitron reported fourth quarter revenue was NOK 949 million (US$107.8 million), down 4.3% year-over-year.

Results showed strong demand but also revenue constraints due to the component supply and a Covid lockdown at the firm’s facility in Ningbo, China.

Profit after tax was NOK 40.4 million, a decrease of 14.2% compared to the same quarter in 2020. Operating profit was NOK 52.3 million, down 30.9%.

More than NOK 160 million of demand in the quarter was delayed into this year. Nevertheless, there was strong growth within the Connectivity market. Adjusted for foreign exchange effects in consolidation, revenue is the same as last year.

The order backlog ended at NOK 2.8 billion, up 41% year-over-year. The order backlog increased within all market sectors, except Defense and Aerospace.

Operating cash flow was NOK 9 million, compared to NOK 132.2 million in the fourth quarter of 2020.

“Two forces dominated the fourth quarter: on the positive side, excellent demand and a record order backlog; on the negative, challenges caused by lack of components and the Covid pandemic,” said Peter Nilsson, Kitron's CEO. “The highlight of the fourth quarter was the acquisition of BB Electronics. I was convinced about the merits of this deal before we announced it, and my conviction has grown even firmer as we have worked with the BB team on common plans. This strengthens my positive view of the coming quarters and years."

Full-year 2021 revenue of NOK 3.7 billion was down 6%, where 3% was due to currency. The decrease was attributed to Covid and the Medical device segment being normalized from 2020 to 2021.
Profit after tax for the year was NOK 152.8 million, down 28.3% year-over-year. Operating profit was NOK 240.8 million, a decrease of 23%.

In December, Kitron announced an agreement to acquire EMS firm BB Electronics, which has production facilities in Denmark, China and the Czech Republic. The group had revenues of about DKK 1 billion (US$153.2 million) in 2021 and about 750 employees.

For 2022, Kitron expects revenue between NOK 5.2 and 5.8 billion, including BB Electronics. Operating profit is expected to be between NOK 330 and 430 million. Growth will be driven by the Electrification, Connectivity and Industry market sectors. Currently, growth is constrained by the material supply situation. A record order backlog and the acquisition of BB Electronics also support revenue growth in 2022.

Ed.: NOK 1 = US$0.11