Page 4 - Kitron Annual Report 2011

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4
Kitron annual report 2011
Cost base reduction
Kitron will focus on reducing the cost base through
global sourcing, increased manufacturing efficiency,
system and process improvements and transfer of
manufacturing to lower cost countries. Within all
these areas there are ongoing programs and clear tar-
gets. Kitron’s employees and their competences are
key factors in fulfilling the company’s strategy.
Consolidation within the Nordic EMS industry
Kitron intends to pursue M&A activities in the Nordic EMS
industry. The focus is on targets that are complementary
to Kitron from a customer and market coverage point of
view. Based on analysis performed on potential targets,
Kitron believes that there is significant synergy potential
within sourcing and operations that can be exploited.
Kitron’s history
Kitron has its origin from the companies Stratonic and
Electric Bureau, both of which were established in the
1960’s in Arendal. The Kitron name was established
in the 1980’s, and Kitron’s business idea changed to
contract manufacturing of electronics. The business
idea has since been extended to include the entire
value chain around the manufacturing and assembly of
electronics and industrial products containing electron-
ics, including development, industrialisation, purchas-
ing, logistics, maintenance/repair and redesign. Kitron
was listed on the Oslo Stock Exchange in 1997.
In order to strengthen its market position and compe-
tence, Kitron has carried out several mergers and ac-
quisitions, most notably Sonec ASA and Kitron ASA
merged in 2000. Today, Kitron consists of businesses
that have their origin in Ericsson, Kongsberg Grup-
pen, Nera and Tandberg Data in Norway, in addition
to Bofors and Saab in Sweden.
Kitron acquired UAB Kitron in Lithuania in 2001 and
UAB Kitron Elsis in 2007. The same year Kitron es-
tablished a sourcing organisation in Ningbo, China. In
June 2009 Kitron divested its Microelectronics facility
at Røros in Norway. In 2010 the development depart-
ment in Oslo, Norway was divested, while a small
German EMS company was acquired. In addition
Kitron established Kitron Electronics Manufacturing in
Ningbo, China and Kitron Inc. in USA in 2010.
Kitron in brief
507
182
398
86
Other
Norway
Sweden
Lithuania
332
265
415
467
177
0
50
100
150
200
250
300
350
400
450
500
Defence/
Aerospace
Energy/
Telecoms
Industry Medical
equipment
Offshore/
Marine
Million NOK
Full Time Equivalents at 31 December 2011
Geographical distribution
Revenue per segment in 2011
Revenue in NOK million