Welcome to this presentation of the Kitron Group's third quarter results. My name is Dag Songedal. I'm the interim CEO of the Kitron Group. I'll have this presentation together with our CFO, Cathrin Nylander. Going into the highlights for the third quarter, we have continuous growth and show our revenue of NOK 382.1 million for the quarter. This is up 10.2% compared to the same quarter last year. The growth is coming from companies outside Scandinavia, which shows both higher revenue growth and also growth in profitability. We still have a challenge with the profitability in the Norwegian operation, which is the main cause for a slight decrease in the EBIT figures.
The shortfall in Norway is partly compensated by increased profitability in the other units, but we show slight decrease of 9.6% in the EBIT figures and that NOK 6.9 million for the quarter in total. The order backlog is slightly down, mainly related to the Offshore segment in the Norwegian operation. We have a positive development in the cash flow compared with the same period last year, but still the cash flow for the period is negative. The net working capital is slightly down by 2% compared with the end third quarter last year. If we go into other main happenings during the quarter, we have secured several important defense orders, mainly for the operation in the U.S. The orders are from Kongsberg Protech Systems.
We received orders in June, July, totaling to NOK 31 million. In addition to that, we also got the new forecast for Repair and Overhaul orders. That shows a significant volume going into 2015. In early October, we received another order for NOK 51 million. All orders are for electronic modules going into Kongsberg's Remote Weapon Station and are all related to the CROWS program in the U.S. The manufacturing will take place in Kitron, in Johnstown in the U.S.A, while some of the sub-suppliers will come from Norway. This secures a long order horizon in the U.S., and we have now an order backlog going into 2016.
The volume is at a level that we believe should secure a profitable operation all during all through 2015. We see strong growth in all units outside Scandinavia in the third quarter, and that is the operations in Lithuania, China, and the U.S. We have a revenue increase by 42%, and the profit compared to the same quarter last year is improving by more than 200%. The main reason for this improvement in profitability is that we are utilizing the capacity in the factories at a much higher level than last year. In Lithuania, the growth is mainly from existing customers within the industry sector. It's a combination of additional orders and growth in general and both new and existing products.
We have been pushing the capacity limits in Lithuania for a while, and that is also the main reason why we last year, as announced previously, initiated an expansion of the facility in Lithuania. This expansion will be in place now in November, and we are then have the facility necessary to take additional growth going into next year. In China, the growth comes from existing customers, primarily in the industry and medical sector. In the U.S., it's mainly the orders from Kongsberg that is driving the revenue increase and also the increase in profitability. The main challenge at the moment is the situation in the Norwegian operation. The target is of course to secure a competitive setup and cost structure for the future.
Several activities has been initiated both in the second and third quarter in order to reduce operational costs and increase profitability. The plan that was announced early in the second quarter is to reduce the labor force by approximately 85 people during 2014. At the end of September, 70 of these have left the company, while the remaining will leave during the fourth quarter. During the fourth quarter, we will also consider when we have a better picture of the situation going into 2015, whether we need further reduction in employees and also further reduction in other operational costs. We do, however, expect a positive EBIT in Arendal in the fourth quarter this year. Going more into the details of the financial numbers, I leave the word to Cathrin Nylander.
Revenue. A strong development in Defense & Aerospace and reductions in Offshore Marine continues. First, a general comment. The revenue in the third quarter is affected by seasonality. The revenue for the third quarter is NOK 382 million, up NOK 35 million from last year and an increase of 10.2%. Of the 10.2%, 1.7% is Currency Translation, which is a lower figure than it has been during the last quarters. When we look at the different sectors, Offshore Marine has a reduction now compared to the same quarter last year of 25.9%. Medical Equipment is up 3.1%. Defense & Aerospace is up 38.1%. Energy & Telecoms up 6.4%. Industry up 24.4%. Growth in all sectors apart from Offshore Marine.
If we then study the share of the volume, of the total volume in this quarter, Offshore Marine is at 10.9%, down from 16% last year. Medical Equipment is at 25.4%, which is down from 27.1% last year. Defense & Aerospace is at 20.1%, up from 16% last year. Energy & Telecoms is at 13%, down from 13.4% last year, and industry at 30.7%, up from 27.2% last year. The industry segment is now the largest segment in Kitron. If you look at the revenue by country, we have a strong growth outside of Scandinavia. Let's start with Norway.
Norway has a revenue of NOK 180 million in this quarter, compared to NOK 181 million last year. It is a revenue decrease of 0.4%. Sweden is up from NOK 90 million to NOK 93 million this quarter, an increase of 3.6%. Lithuania is an increase to NOK 102 million from NOK 82 million last year, which is 25.4%. The others, containing the U.S. and China, is up to NOK 68 million from NOK 41 million last year, substantial increase. If we look on the share of the total revenue, if we add Lithuania and the other units, they are now at over 38%. If you look at the same quarter last year, they were at 31.1%. This is also an increase of share compared to the previous quarters.
As Dag mentioned, there is a reduction in EBIT compared to last year. The EBIT for the quarter is NOK 6.9 million compared to NOK 7.6 million the same period last year, a reduction of NOK 0.7 million. The EBIT margin is at 1.8%, down from 2.2% same quarter last year. It's the Arendal situation that affects the profitability, but it is partially compensated by the growth in China and U.S. and Lithuania. However, if you look on the EBIT margin in this quarter compared to the previous quarter, it has improved from 0.5% and 1.5% last quarter. It is important to once again comment on that the cost reduction measures are initiated in Arendal, and we are continuing the restructuring of the Norway facility.
The EBIT by country, Norway is still challenging, but strong profitability improvement in other sites. Norway had the profitability on EBIT of 5.5% last year and now show a loss of 5.3% for the quarter. It is partly due to mix change and also adverse effects on currency due to the development of the Norwegian krone. There's also some effects due to the down manning we're doing and the utilization affected by that. When we look at Sweden, we see a reduction from 2.3%-1.5% to NOK 1.6 million. The revenue is quite stable, but we see that the margins are slightly reduced, and they are also partly affected by currency in the quarter.
Lithuania, a substantial increase from NOK 4.4 million last year to NOK 6.8 million this year. It is revenue growth, as Dag said, from existing customers and other, and new orders, which drives revenue and drives profitability. Looking at the other parts, which is containing also the U.S. and stats and China, they had a loss last year of NOK 2.7 million and now show profit of NOK 1.9 million, a substantial change. Finally, cash flow improvement. The cash flow has increased in the quarter from NOK 33.3 million last year to about NOK 9 million this year. The reason for this is that we have an increase in Trade Payables that are slightly higher than the inventory increase and thus affecting the cash flow positively.
It does also affect the net working capital, thus reducing it with NOK 10 million for the quarter compared to the same quarter last year. Also a positive note to mention is that the Inventory Turns, they are up from 3.3 in the same period last year to 3.5 this year. I'm going to leave the word back to Dag.
Looking at market development, first to take a look at the order backlog. We see a slight decrease in the order backlog in the quarter. The main reason is the reduction in the Offshore Marine sector, which is quite significantly down by NOK 96.4 million. While we have a similar increase in the Defense & Aerospace sector of NOK 96 million. The reduction in the Offshore Marine is mainly related to the Norwegian operation, while the increase in the Defense & Aerospace side is a mix of U.S. and Norway. We do also see a reduction in the industry sector of NOK 29.3 million, which is kind of spread on the different sites. We do not believe that this is an indication of a reduced volume towards the industry segment going forward.
It's more kind of related to the order horizon. Looking over how we look at the different sectors, we have seen a decrease in the Offshore Marine sector for the last two quarters, that was also how we announced it in presenting the first quarter this year. We believe that this reduction in volume will be there also going into 2015. We do not see any significant change in this in the months to come. For the Medical segment, we have a stable demand in both Norway and Sweden. We also foresee a stable situation going into 2015. Defense & Aerospace, we have strong growth within the Defense segment, we do also have a positive outlook.
We have secured several orders over the last two quarters within this segment. We believe that our position within this sector is strengthened compared with a year ago. We have a positive outlook throughout 2015 for the Defense & Aerospace sector. Energy & Telecoms, we have a stable demand with mainly in Sweden and in Lithuania, and we believe that this situation will be like this also going into 2015. For the industry sector, we do have a slightly reduced order backlog as presented, but we believe that this has more to do with the order horizon, the length, the order, the forecasting period, than actually any change in the volume.
We've had quite significant growth in the industry sector for several consecutive quarters, and we believe also to have a stable and slightly positive development in the quarters to come. Looking into how we look at the fourth quarter, we expect, as we have said also in the past, that we will have growth in 2014 in total. The growth in the first 9 months has been significant, while we do see a slight decrease in the fourth quarter compared with last year, mainly due to the situation in Norway. The main issue, however, is the profitability. We are not satisfied with the level of profitability we have presented for the third quarter.
The number one task is to improve the profitability, mainly in the Norwegian operation, but also in the Swedish operation, where we have seen a decrease in margins. Yeah. I think that was what we wanted to present today. Thank you for joining this webcast, and have a nice day. Thank you.