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2015-04-22

Kitron: Q1 2015 - Revenue growth with improved profitability

(2015-04-22) Kitron ASA today reported the fourth consecutive quarter of
improved profits, due to a combination of growing revenue and cost
initiatives.

Kitron's revenue amounted to NOK 471 million, an increase from 436 million in
the first quarter of 2014.

Operating profit (EBIT) was NOK 20.8 million, compared to 2.0 million last
year. The improvement is mainly due to a combination of increased revenue and
cost initiatives the company implemented during 2014.

Net profit amounted to NOK 13.6 million, an improvement from a loss of 1.7
million, influenced by both improved operating profit and currency effects on
net financial items.

This corresponds to earnings per share of NOK 0.08, compared to a loss of NOK
0.01 last year.

Peter Nilsson, Kitron's CEO, comments:

"In the first quarter we continued to build on the turnaround that was
starting to show results towards the end of 2014. Cost initiatives have taken
effect, revenue is growing, and important orders during the quarter
contribute to a solid order backlog. We are clearly on a path leading to
improved profitability."

* Fourth consecutive quarter of improved profits
* Revenue growth fueled by increased demand in defence
* Strengthened order intake
* Cash flow improved

Fourth consecutive quarter of improved profits

The improvements in Kitron's profitability continued in the first quarter.
Profitability expressed as EBIT as a percentage of revenue was 4.4 per cent
for the quarter, up from 0.5 per cent in the first quarter of 2014. Relative
payroll costs went from 29 per cent of revenue to 24 per cent. Other
operating costs fell from 7 per cent of revenue to 6 per cent.

Non-recurring gains of NOK 3.5 million were booked in the quarter, compared to
non-recurring costs of 2.0 million in the first quarter of 2014.

Revenue growth fueled by increased demand in defence

Kitron's revenue of NOK 471 represents an increase of 8 per cent compared to
the same period last year. Growth adjusted for foreign exchange effects was 4
per cent. The Defence/Aerospace and Industry sectors grew, while
Offshore/Marine decreased due to the general adjustment in the oil service
market.

Strengthened order intake

The order backlog was NOK 855 million, an increase of 21 per cent compared to
the same time last year. The increase is mainly due to large orders within
the Defence/Aerospace sector. Orders received in the quarter were NOK 461
million, an increase of 13 per cent compared to last year. Kitron Norway
received important orders from Lockheed Martin and Northrop Grumman.

Cash flow improved

Operating cash flow was NOK 35.0 million, compared to minus 17.4 million in
the first quarter of 2014. This is primarily related to the improvement in
profit. Working capital reduction actions continue to be in focus.

Outlook

For 2015, Kitron expects growth and a clear improvement in profitability.
Growth is driven by increased demand in the Defence/Aerospace 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 at 08:30 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=20159763

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 pursuant to section
5-12 of the Norwegian Securities Trading Act.

Kitron Q1 2015 Presentation
http://hugin.info/197/R/1913191/683151.pdf
Kitron Q1 2015 Report
http://hugin.info/197/R/1913191/683150.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kitron ASA via Globenewswire

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