Kitron ASA has reported third quarter revenues of NOK 338.6 million, down 25.5% compared with the same period last year. Loss before tax and discontinued operations was NOK 0.6 million, compared to a profit of NOK 27.6 million for the third quarter last year.

Kitron's cash flow from operations was NOK 11 million compared to NOK 27.8 million in the same period last year. Before repayment of factoring debt, the cash flow was NOK 19 million. The order intake was NOK 377 million and the order backlog was NOK 778 million, a decrease of 34.8% and 29.3%, respectively.

Kitron has successfully implemented a capacity adjustment program during 2009 and has managed to maintain a solid financial position during the recession. The company claims it is ready for a market recovery and expects that the profitability will improve as a result of the measures taken, as well as the continued focus on operational improvements. Already in the second half of the third quarter, Kitron has been seeing some improvements in activity and performance. The quarter as a whole is seasonally weak due to the holiday season in July-August.

Going forward, further streamlining to improve profitability cannot be ruled out, says Kitron. According to the company, the transfer of manufacturing to low cost countries will be an important driver in this respect.

About Kitron

Kitron is a medium-size, high-mix low volume EMS company. It has manufacturing facilities in Norway, Sweden and Lithuania and has approximately 1,100 employees. Kitron manufactures both electronics that are embedded in the customers' own product, as well as box-built electronic products. Kitron also provides high-level assembly (HLA) of complex electromechanical products for its customers.

Kitron offers all parts of the value chain: from design via industrialisation, manufacturing and logistics, to repairs. The electronics content may be based on conventional printed circuit boards or ceramic substrates. Kitron also provides various related services such as cable harness manufacturing and components analysis, and resilience testing, and also source any other part of the customer's product. Customers typically serve international markets and provide equipment or systems for professional or industrial use. For more information, visit www.kitron.com.

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