Page 10 - Kitron Annual Report 2011

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10
Kitron annual report 2011
Competence
In 2011 Kitron continued to focus on competence
development. Most of the basic training for technical,
quality, safety and manufacturing skills is done locally
at each site and is a combination of class room train-
ing and on the job learning. In 2011 about 24 500
hours were spent on training which equals about 20
hours per employee. 14 800 hours were spent on
Manufacturing/Technical subjects and 2 300 hours
on Leadership.
Corporate governance
The Kitron board has adopted policies for corporate
governance to safeguard the interests of the com-
pany’s owners, employees and other stakeholders.
These principles and associated rules and practices
are intended to create increased predictability and
transparency, and thus reduce uncertainties con-
nected with the business. Kitron endeavours to have
in place procedures which comply with the Norwe-
gian code for corporate governance. The board’s
review of corporate governance is presented in the
annual report.
Outlook
The performance in 2011 was a step in the right
direction but did not fully meet our expectations.
The reasons being a slower than predicted market
development and further need for restructuring of the
Swedish operation.
In 2012 Kitron management believe in a stable market
and revenue development overall, but with variations
between the segments. Kitron is working on several
operational improvement programs that should yield a
positive contribution on the profitability going forward.
The focus on manufacturing efficiency is continuing
and global sourcing initiatives remain a priority area.
Kitron’s investments in China, US and Germany will
expand our market reach and will provide new sup-
ply chain opportunities. It is targeted that the new
operations will reach break even during 2012. This
will gradually have a positive impact on the profitability
compared to 2011. In 2011 the total cost (in terms
of negative EBIT result) to start up new entities was
NOK 25.4 million.
The restructuring of the Swedish operation is another
factor which is expected to have a positive impact on
the profitability. The costs for the restructuring have
been booked in the 2011 accounts.
In summary Kitron believe in a relatively stable turno-
ver and improved profitability in 2012 compared to
2011.
The board emphasises that every assessment of
future conditions necessarily involves an element of
uncertainty.
Oslo, 20 March 2012
Asa-Matti Lyytinen
Chairman
Arne Solberg
Deputy chairman
Elena Anfimova
Liv Johansen
Employee elected
board member
Harri Takanen
May Britt Gundersen
Employee elected
board member
Lisbeth Gustafsson
Geir Vedøy,
Employee elected
board member
Jørgen Bredesen
CEO