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Kitron ASA today hosts at Capital Markets Day to describe the foundation for the ongoing improvements at the company and to outline strategy and targets.
Organic growth of 10 percent annually
Long-term operating profit margin of 7 per cent.
Comprehensive operational improvement program on-going
Will consider targeted acquisitions
Dividend policy updated
"As our fourth quarter results confirms, we have substantially improved profitability and cash flow over the past year. This change has clearly been noticed by the financial community. Based on this, we feel that this is a good time to elaborate on our strategy and targets by hosting this event," said Peter Nilsson, CEO of Kitron.
"The progress over the past year has been achieved because we have implemented a number of improvement programs. This has strengthened our margins and dramatically improved cash flow by reducing working capital. The programs are proceeding according to plan, and this gives us confidence in the targets we present today," he added.
Kitron sees accelerated organic growth going forward, based on a strong position in its defined market niches. In addition, the company will consider carefully targeted acquisitions. These may be electronics manufacturing services companies or product hardware companies with products of particular importance to Kitron's customers.
The Board of Directors of Kitron has revised the company's dividend policy. Kitron will pay an annual dividend of 30 to 60 per cent of the company's ordinary net profit after tax. The range is increased from 30 to 50 per cent.
"The adjustment is based on a fundamental strengthening of Kitron's business, with improved profitability and successful programs to improve the working capital. It is an indication of our commitment to creating value for our shareholders," said Tuomo Lähdesmäki, Chairman of the board of Kitron.
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 1.95 billion in 2015 and has about 1 200 employees.