BILLINGSTAD, NORWAY -- Kitron's revenue for the second quarter was NOK1.58 billion ($154.3 million), up 59% year-over-year on a combination of strong demand and acquisitions, and the electronics manufacturing services company said it would raise its revenue forecast for full-year 2022. 

Second-quarter operating profit (EBIT) was NOK100.2 million, compared to NOK73.1 million last year. EBITDA rose 46% to NOK142.7 million.

Order backlogs at the end of the June quarter were NOK4.88 billion, up 113% over last year. This reflects a strong total demand situation and built-up demand from supply chain delays. Order backlog increased within all market sectors.

In a statement, Peter Nilsson, CEO, Kitron, said: "Demand remains very strong, leading us to raise our revenue outlook for the year. The supply chain delays saw some relief during the second quarter, contributing to record revenues and a positive margin trend compared to the first quarter. We expect the component market deliveries to continue to show improvement over the rest of the year, leading to a more favorable outlook on the introduction and ramp-up of several electrification projects.”

EBIT margin was 6.3% in the second quarter, down from 7.4% last year. "EBIT margin is improved from the preceding quarters but still affected by cost increases and inefficiencies caused by supply chain delays," Nilsson said.

Profit after tax was NOK66.3 million, compared to NOK48.6 million in 2021. Operating cash flow was NOK21.7 million, versus NOK109.3 million.

Net working capital was NOK1.79 billion, an increase of 73% over last year, partly reflecting the acquisition of BB Electronics. Net working capital as a percentage of revenue was 26.9%, up 90 basis pointsfrom last year down three percentage points sequentially. Further reduction is expected as improvement programs deliver on advancements in the supply chain, resource management, cash and deliverables.

For 2022, Kitron raised its revenue outlook to NOK5.7 billion to NOK6.1 billion, up from its previous guidance of NOK5.2 billion to NOK5.8 billion. The high end of the operating profit range was raised to NOK430 million, up NOK30 million.

Entering the second half of 2022, Kitron sees strong demand from customers and continued ease of supply chain constraints. Profitability is improving compared to the first quarter, when rapid cost increases challenged the company.

1 NOK = 0.0976964 USD

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