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Kitron: Maintaining strategic ambitions and outlook

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(2020-03-18) Kitron will today host a combined webcast and conference call to present an update on the company's operations and progress towards the strategic and financial targets and ambitions presented at last year's Capital Markets Day.

While this is a planned strategic progress report, the company will also give an update on the short-term situation relating to the coronavirus.

“Over the past year, we have made excellent progress along the path we set last year towards 2025, integrating a new business in the US, opening a new factory in Poland and expanding our capacity in China. In the short term, we have taken strong actions to reduce risks related to the corona situation. Currently all our facilities are operating as normal. Based on what we currently know, we seem to be on track for our 2020 outlook. However, uncertainty might give higher volatility in the months to come. But so far, demand remains strong and stable,” said Peter Nilsson, CEO of Kitron.

2025 ambitions
Kitron will continue its growth strategy, while maintaining robust operating margins and capital discipline. The company maintains it outlined ambitions for 2025: revenue of NOK 5 billion, an EBIT margin of 7 percent and return on operating capital of 25 percent.

The capacity expansion carried out last year is considered sufficient to reach the 2025 revenue ambition.

Growth drivers
Kitron will maintain its focus on current market sectors, and has identified three growth drivers for relevant markets:

  • Long-term outsourcing trend continues
  • Broad-based move to electrification
  • Internet of Things drives product connectivity

These macro trends provide exciting growth opportunities characterized by complex, high-margin products and medium volumes.

Corona situation
So far, we have seen no major disruption to our business, neither internally nor with regards to suppliers or customers. Our facility in China was affected by the temporary restrictions imposed by the authorities, but it is currently back to normal capacity, and we will increase capacity going forward. All other facilities have been operating as normal. All tier-one suppliers in China have re-started operations. There has so far been no major disruptions to supply chains outside China. Moving forward, we are preparing for some component allocations and take actions to alleviate such a situation. 

In general, it is difficult to evaluate the effects of this fast-changing situation, but Kitron has taken a number of actions to reduce risk and protect the capacity.

Event details
The presentation will be webcast at 10:00 am CET today and will be hosted by CEO Peter Nilsson and other members of group management. The webcast will be followed by a conference call.

The webcast does not require prior registration, but you will have to register in advance to take part in the conference call.

To register for the conference call, please send an email to: investorrelations@kitron.com

To follow the webcast, please use the following link: https://channel.royalcast.com/webcast/hegnarmedia/20200318_1

Enclosed in PDF is the presentation material for the event.

For further information, please contact:
Cathrin Nylander, CFO, tel: +47 900 43 284
E-mail: investorrelations@kitron.com

Kitron is a leading Scandinavian electronics manufacturing services company for the Defence/Aerospace, Energy/Telecoms, Industry, Medical devices and Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania, Germany, Poland, China and the United States. Kitron had revenues of about NOK 3.3 billion in 2019 and has about 1 700 employees. www.kitron.com

This information is published in accordance with the requirements of the Oslo Børs Continuing Obligations for stock exchange listed companies.

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