Stock Market News
Kitron shares stumble despite strong Q4 revenue and profit
Share in Scandinavian electronics manufacturer Kitron took a tumble on Friday even as it reported strong revenue growth and improved profits.
Kitron's revenue hit NOK 668m in the fourth quarter, a 17% increase on the same period a year earlier, as the industry sector saw particularly strong growth, while its defence and aerospace wing also picked up its fair share of the slack. The group's order backlog ended the year at NOK 1.3bn, up 28% from the 941m waiting in line at the end of the 2016 calendar year.
Operating profit jumped 26% to NOK 43.1m as margins improved to 6.5% from 6% a year earlier.
Revenue from the full twelve months leading to 31 December came in at NOK 2.43bn, up 16% on the year, while operating profits finished out 2017 at NOK 148.7m compared to the previous year's 117.8m.
Chief executive Peter Nilsson said: "We ended 2017 on a positive note in the fourth quarter. Strong growth, improved profitability and improved capital efficiency indicate that we are on track towards our strategic targets. It is especially gratifying that the improvements continue despite component availability being a challenge for the industry in 2017. This demonstrates the importance of Kitron's strong supply chain."
Kitron also updated investors on its new dividend policy. "Kitron's dividend policy is to pay out an annual dividend of at least 50% of the company's consolidated net profit before non-recurring items. When deciding on the annual dividend the company will take into account company's financial position, investment plans as well as the needed financial flexibility to provide for sustainable growth."
As a result of the clearly improved free cash flow in 2017, Kitron proposed an extraordinary dividend of NOK 0.35 per share and an extraordinary dividend of NOK 0.20 per share for 2017. Last year, its dividend was NOK 0.25.
At 1040 GMT, the shares were down 14.53% to NOK 6.83.
Kitron's revenue hit NOK 668m in the fourth quarter, a 17% increase on the same period a year earlier, as the industry sector saw particularly strong growth, while its defence and aerospace wing also picked up its fair share of the slack. The group's order backlog ended the year at NOK 1.3bn, up 28% from the 941m waiting in line at the end of the 2016 calendar year.
Operating profit jumped 26% to NOK 43.1m as margins improved to 6.5% from 6% a year earlier.
Revenue from the full twelve months leading to 31 December came in at NOK 2.43bn, up 16% on the year, while operating profits finished out 2017 at NOK 148.7m compared to the previous year's 117.8m.
Chief executive Peter Nilsson said: "We ended 2017 on a positive note in the fourth quarter. Strong growth, improved profitability and improved capital efficiency indicate that we are on track towards our strategic targets. It is especially gratifying that the improvements continue despite component availability being a challenge for the industry in 2017. This demonstrates the importance of Kitron's strong supply chain."
Kitron also updated investors on its new dividend policy. "Kitron's dividend policy is to pay out an annual dividend of at least 50% of the company's consolidated net profit before non-recurring items. When deciding on the annual dividend the company will take into account company's financial position, investment plans as well as the needed financial flexibility to provide for sustainable growth."
As a result of the clearly improved free cash flow in 2017, Kitron proposed an extraordinary dividend of NOK 0.35 per share and an extraordinary dividend of NOK 0.20 per share for 2017. Last year, its dividend was NOK 0.25.
At 1040 GMT, the shares were down 14.53% to NOK 6.83.
Related share prices |
---|
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price