I thought I’d write about Kitron ASA, an Electronics Manufacturing Services (EMS) company that manufactures various electronic components/devices for many uses. Kitron was founded in Norway in the 1960s and currently operates in Norway, Sweden, Lithuania, Poland, Germany, China, and the United States. Production is mainly focused on defense, aerospace, energy, telecommunications, industry, medical devices, offshore and marine, and additionally, the automotive industry in autonomous technology.
Below, I will briefly introduce each industry sector and include a link to Kitron’s own brochure on the topic.
All images are taken from Kitron’s website.
Defence/Aerospace
In this sector, the company offers products for the defense sector for avionics, communication, and weapon systems, either as parts or complete systems. Customers in this field include small industry players such as BAE Systems, Lockheed Martin, Northrop Grumman, Rheinmetall, and Saab, as well as other companies.
Energy/Telecomms
In the energy and telecommunications sector, Kitron manufactures RF systems, data transmission and storage systems, etc. Customers include Otrum, ABB, Net Insight, Aidon, and Sensus.
Industry
For industry, Kitron manufactures products for automation, safety/surveillance, and material storage. Examples of products include various ECUs, interactive hotel systems, etc.
Customers include Volvo, Saab, ABB, Husqvarna, and many others.
Medical Devices
In the medical/healthcare sector, last year was a peak for the company due to the coronavirus, as, for example, there was demand for ventilators due to the pandemic. In addition to ventilators, ultrasound/cardiology devices and many similar products are included in the manufactured products/components.
Kitron’s customers in this area include GE Healthcare, Maquet, Cellavision, Elektra, and similar companies.
Offshore/Marine
This is one of Kitron’s strongest business areas, and they have developed manufacturing processes that produce products that withstand these challenging conditions. For example, the company manufactures equipment for oil/gas exploration, as well as navigation/automation/control systems for marine use.
Customers in this sector include ABB, Hernis, and FMC Technologies.
Now that the company’s business areas have been covered, it’s probably time to talk a little about money. Kitron will pay a dividend of NOK 0.70 per share this year, and below is a table of the company’s financial figures for recent years.
| Years | Revenues | Operating profit | Net profit | Net cash flow from operating activities | Net cash flow from investing activities | Order intake | Order backlog | Total equity | Equity ratio | Employees |
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 3963.9 | 312.6 | 213.1 | 237.0 | (59.0) | 4085.5 | 2005.5 | 885.7 | 33.4 | 1805 |
| 2019 | 3299.4 | 201.5 | 132.5 | 195.2 | (248.1) | 3367.7 | 1883.9 | 739.2 | 30.8 | 1722 |
| 2018 | 2619.3 | 156.1 | 110.3 | (44.5) | (55.9) | 2750 | 1334.8 | 691.5 | 37.1 | 1606 |
| 2017 | 2436.7 | 148.7 | 99 | 160.8 | (35.2) | 2686.1 | 1306.4 | 663.6 | 42.8 | 1451 |
| 2016 | 2093.0 | 117.8 | 74.6 | 108.5 | (43.8) | 2174.3 | 1019.4 | 584.8 | 43.2 | 1337 |
| 2015 | 1951.8 | 102.7 | 72.2 | 204.1 | (75.9) | 2002.4 | 975.6 | 566.5 | 44.5 | 1221 |
| 2014 | 1751.3 | 30.0 | 24.2 | (4.7) | (62.9) | 1834.9 | 868.4 | 494.6 | 42.9 | 1200 |
Here is a link to recent orders and announcements about what has been happening at the company recently.
For example, some recent orders include:
Kitron has received an order from Northrop Grumman for the production of a sub-assembly for the F-35 fighter aircraft radar system developed by Northrop Grumman. The intermediate frequency (IF) receiver was awarded under a best value competition and covers production lot 15. The value of the order is NOK 10 million.
Kitron expands services with a major existing customer to cover the production of battery management systems. The new award initially covers 2022 to 2025 and is valued at NOK 150 million.
Production will take place at Kitron’s plant in Poland. The award also covers various services.
“We’re extremely happy to expand this relationship with a new product line. Battery management systems are examples of the growth potential within the fundamental shift from fossil fuels to electrification. This is an area of strategic importance to Kitron and currently helping to fuel the strong growth we see within Electrification,” says Peter Nilsson, President and CEO, Kitron Group.
Kitron has received an order with a value of more than NOK 20 million from Kongsberg Defence & Aerospace AS.
The order is for the production of RL542A, a core component in the new Flexible High Capacity Radio Link (FHCL), supplied by Kongsberg for the Norwegian Armed Forces.
Deliveries will start in 2021 and continue through 2022. Production will take place at Kitron’s plant in Arendal, Norway.
“This order underlines the long and close relationship between Kongsberg and Kitron, and we are very happy to build on this relationship by placing yet another order with Kitron, thus illustrating the value of the Norwegian defence industry cluster,” said Pål Bratlie, Executive Vice President Land Systems, Kongsberg Defence & Aerospace AS.
“This order is strategically important for Kitron. It strengthens our cooperation with Kongsberg and contributes to secure our position in the Defence sector,” said Hans Petter Thomassen, Managing Director, Kitron Norway.
Tomorrow, Kitron will publish a new strategy related to its future goals, and below is the announcement about it.
As previously announced, Kitron plans to present an update on the company’s operations and progress towards its strategic and financial targets and ambitions during a capital markets presentation on 17 March.
This concludes my brief overview of this company for now, and I hope it proves useful to someone.