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Cavotec lifts first-half pre-FX profit 48% on better sales

Cavotec lifts first-half pre-forex profit 48% on improved orders

Aug. 23 (BusinessDesk) - Cavotec MSL Holdings reported a 48% rise in first-half profit before foreign exchange and fair value adjustments, reflecting a strong overall performance from its four industry groups.

Adjusted profit rose to 4.1 million euros in the six months ended June 30 from 2.8 million euros in the same six months last year. After foreign exchange and fair value adjustments, the result fell to 1.4 million euros from 7.7 million euros.

The global engineering group which is NZX-listed and owns Christchurch-based MoorMaster said revenue rose 33.5% to 83.8 million euros while its accumulated order intake reach a record 111.1 million euros, up 59.5% from a year earlier. The order book stood at 89.7 million euros at June 30, up 15%.

“A good indicator of our overall strength is the continuing increase of our order book which reached another record level of 91 million euros in July,” chief executive Ottonel Popesco said. “During the same month, order intake amounted to 15 million euros, an excellent achievement and a clear indication of our strong position in all four of our market units.”

Popesco reiterated earlier guidance for the full year that revenues should increase more than 10% and profitability will follow but said it is too early to give an exact profit forecast because of the turmoil in financial markets and the about $30 million INET acquisition announced earlier this month.

“We should have one of our best years ever and 2012 is also forecast to be very good but you never know what's going to happen in financial markets,” Popesco said.

INET's revenues, more than US$25 million a year at acquisition, should show a huge increase because of work coming from Cavotec, he said.

Cavotec's ports and maritime division lifted revenues 70.5% in the six months and accounted for 32.9% of group sales while the airports division lifted revenue 81.4% with “robust performances” in the Middle East and Far East being the primary drivers.

The mining and tunnelling division lifted revenues 16.8% but the general industry division saw sales fall 14.2% due to a generally softer market although prospects for the second half are looking more positive, Popesco said.

Cavotec shares closed yesterday at $2.75. They have been drifting down from $3.40 late last year but are up from their $2.58 low in April.

Shareholders will vote next month on whether to swap their New Zealand stock for shares in a holding company that will list on the Nasdaq OMX Stockholm. Cavotec announced plans to quit the NZX in February after criticising the illiquid trading on New Zealand’s exchange.


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