BILLINGSTAD, NORWAY -- Kitron today reported revenue for the first quarter of EUR 173.9 million ($186.5 million), down from  EUR 190.6 million last year.

Strong growth within the defense/aerospace sector was offset by declines in other end-markets.

First-quarter operating profit was EUR 10.6 million, versus 17.3 million last year. EBITDA was EUR 15.2 million, compared to 21.4 million last year. Profits are impacted by restructuring charges of EUR 4.8 million.

EBIT margin was 6.1%, including restructuring charges, down 300 basis points. Profitability adjusted for restructuring charges was 8.8%. Profit after tax amounted to EUR 6.5 million, compared to 13.3 million in the same quarter the previous year.

Backlog ended the quarter at EUR 445 million, down 24% from a year ago and down 10% sequentially.

In a statement, Peter Nilsson, CEO, Kitron, said: "Nordic and US operations show positive momentum, mainly driven by increased demand in the defense and aerospace sectors. However, the broader market environment is challenging, leading us to revise our full-year sales outlook. The slower-than-anticipated market recovery, along with extended de-stocking activities by customers, necessitate this adjustment. These challenges are affecting our operations in Central and Eastern Europe and to a greater extent in China. Despite these headwinds, we see signs of recovery in some market sectors as we approach the fourth quarter.

Kitron said it will implement cost initiatives to reduce its annual cost base by approximately EUR 12 million, with the full benefits to be realized starting from the middle of the second quarter.

Kitron lowered its revenue outlook to EUR 660 to 710 million, versus previous guidance of EUR 700 to 800 million.

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