Kitron — Earnings Release 2015

Oct 20, 2015

Kitron: Q3 2015 - Solid growth, improved profitability

Kitron: Q3 2015 - Solid growth, improved profitability

(2015-10-20) Kitron ASA today reported the sixth consecutive quarter of improved

profits, due to a combination of growing revenue and improved margins.

Kitron's revenue in the third quarter amounted to NOK 468 million, an increase

from 382 million in the third quarter last year, reflecting both underlying

growth and currency effects.

Operating profit (EBIT) was NOK 26.3 million, compared to 6.9 million last year.

The improved results are a consequence of increased revenue, helped by a

stronger demand for technical services.

Net profit after tax amounted to NOK 22.8 million, an improvement from 4.8

million. This corresponds to earnings per share of NOK 0.13, compared to NOK

0.03 last year. In addition to the underlying improvement in operating

profitability, currency effects on intra-group financial loans affected net

profit positively.

Peter Nilsson, Kitron's CEO, comments:

"Once again we are able to demonstrate that Kitron is on the right track. This

quarter we combined strong growth, improved profitability and important new

orders, particularly in the Defence and Aerospace sector. In the coming

quarters, we plan to build on the improvements in our underlying margins while

also aiming for top-line growth."

* Sixth consecutive quarter of improved profits

* Strong overall revenue growth

* Defence orders strengthens future position

* Increased operational cash flow

Sixth consecutive quarter of improved profits

Profitability expressed as EBIT as a percentage of revenue was 5.6 per cent for

the quarter, up from 1.8 per cent in the third quarter of 2014. The

substantially improved results are a consequence of increased revenue, improved

products mix and increased service sales, both from development and engineering.

In general, there is a stronger demand for technical services than last year.

Strong overall revenue growth

Kitron's revenue in the third quarter was 22 per cent higher than last year.

Adjusted for currency effects, growth was 14 per cent. Growth was particularly

strong in the Defence/Aerospace sector, where revenue increased 71 per cent.

Growth was also solid in Energy/Telecoms and Medical equipment, while

Offshore/Marine fell sharply, affected by the adjustment in the oil service

market.

Defence orders strengthens future position

The order backlog ended at NOK 916 million, an increase from 807 million a year

ago. Significant defence orders awarded in the quarter further underline

Kitron's position as a strong partner within the Defence/Aerospace sector. In

particular the expansion of the footprint in the F35 program secures this

position for the future.

Increased operational cash flow

Operational cash flow was NOK 32.7 million, an improvement from minus 9.7

million in the same quarter last year, primarily related to the significant

improvement in profit.

Outlook

For 2015, Kitron expects growth and a clear improvement in profitability. Growth

is driven by increased demand in the Defence sector for US and Norwegian

markets, as well as increases in Energy/Telecoms and Industry. Offshore/Marine

will have a reduction due to the oil service market in Norway.

Enclosed in PDF are the quarterly report and the presentation.

The interim report is presented today at 8:30 a.m. CEST at Kitron ASA's head

office, Olav Brunborgs vei 4, Billingstad.

The presentation will be given in English by CEO Peter Nilsson and CFO Cathrin

Nylander, and will be distributed through webcast at the same time at the

following link: http://webtv.hegnar.no/presentation.php?webcastId=25254495

For further information, please contact:

Peter Nilsson, CEO, Tel: +47 948 40 850 or e-mail: peter.nilsson@kitron.com

Cathrin Nylander, CFO, Tel: +47 900 43 284 or e-mail:

cathrin.nylander@kitron.com

Kitron is one of Scandinavia's leading electronics manufacturing services

companies for the Defence/Aerospace, Energy/Telecoms, Industry, Medical

equipment and Offshore/Marine sectors. The company is located in Norway, Sweden,

Lithuania, Germany, China and the United States. Kitron had revenues of about

NOK 1.75 billion in 2014 and has about 1 200 employees. www.kitron.com

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act).

[HUG#1959941]