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Cavotec SA - 1Q15 Report

13:00 / 6 May 2015 Cavotec Press release

Cavotec SA - 1Q15 Report

This is a summary of the 1Q15 report published today. The complete 1Q15 report
and full year summary with tables is available at Investors should not rely on summaries
only, but should review the complete reports with tables. 

  -- Revenues increased 1.0% to EUR 41,311 thousands (1Q14: 40,899).
  -- Adjusted operating result (EBIT) was negative at EUR 3,387 thousands,
     compared to negative EUR 627 thousands in 1Q14.
  -- Net result was positive at EUR 1,743 thousands, compared to negative EUR
     1,573 thousands in 1Q14.
  -- Order Intake decreased 0.4% quarter on quarter at EUR 67,306 thousands
     (1Q14: 67,564).
  -- Order Book increased 26% to EUR 126,967 thousands (FY14: 100,967).
  -- Book to bill ratio was 1.63x in 1Q15 compared to 1.65x in 1Q14.

A comment from our CEO

Following two exceptionally strong quarters, 1Q15 results were subdued but in
line with market guidance. Revenues for the quarter amounted to EUR 41,311
thousands, a slight increase compared to 1Q14, partially due to favourable
currency exchange differences. 

Order intake was strong in 1Q15 with a majority of day-to-day and smaller
project orders. During the quarter Cavotec also registered one large project,
which was for MoorMaster™ automated mooring units for the Port of Salalah in
Oman. The main factor behind the minor decrease in order intake for the period
compared to 1Q14 was the exceptional MoorMaster™ order for St. Lawrence Seaway
in Canada last year. 

Cavotec’s order book remains strong at EUR 126,967 thousands, comprising a
healthy mix of both larger and smaller projects, as well as a solid foundation
of day-to-day business. We see the uptick in smaller projects in our order
intake as a positive development and an indicator of increased confidence
across several of our major markets. 

Operational highlights

Cavotec further strengthened its leading position in the Ports & Maritime
segment in 1Q15 with several significant orders from major industry players. In
January, the Group announced an order for eight MoorMaster™ units for
installation at a container berth at the Port of Salalah. Notably, this is the
fourth order for MoorMaster™ systems from the Port of Salalah, a returning
customer that highlights the effectiveness of the system. 

In March, Cavotec announced five orders from one of the world’ s largest port
equipment manufacturers, ZPMC. The most substantial of these was for cable
reels that will sup ply power to 72 ZPMC Automated Stacking Cranes at the P
asir Panjang Terminal at the Port of Singapore.   For the same terminal,
Cavotec will provide 28 spreader cable reels for ship-to-shore container
cranes. Pasir Panjang is Singapore’s newest and most advanced terminal, with
the capacity to load and offload the world’s largest container ships. The
remaining orders included one for the supply of cable management systems for
Electric Rubber Tyred Gantry cranes, (ERTG), and another for a number of gantry
and spreader reels for ship-to-shore cranes. 

Cavotec also won two separate orders from a European ship-owner : one for six
Alternative Maritime Power, (AMP), reels for fixed installations, the other for
AMPTainer equipment. Cavotec’s innovative AMPTainer units are containerised
shore power solutions that enable the connection of vessels to electrical
power. AMPTainer minimises modification work required on vessels to accommodate
shore power equipment, and is another Cavotec innovation that showcases our
advantage in the field of shore electrification of ships. 

The Group registered several orders for one of its latest innovations:
Automatic Plug-in System,(APS). The system will be used at DP World’s major
development at the Port of Yarimca in Turkey to provide electrical power and
communication connection for ERTG cranes. There was also an order for APS
equipment for installation at one of the largest container terminals in

Cavotec continued to grow in the Airports segment, with the announcement of two
breakthrough orders for its Sub-Freezing DX-Boost pre-conditioned air (PCA)
aircraft cooling technology. One of these projects is for the Presidential
Flight Hangar at Abu Dhabi International Airport, and the other for the Oman
Air Maintenance, Repair & Overhaul facility at Muscat Inter national Airport.
For both these orders the Group will design, supply, install, test and
commission the Sub-freezing DX-Boost PCA system, 400Hz Converters, Pop-Up Pit
and Hatch Pit systems. 

DX-Boost technology, or Direct Expansion Boost, cools aircraft at the gate
using a liquid-chilled first stage, followed by two or three refrigerated
cooling stages with the aid of a high-pressure centrifugal blower and
compressors, making DX-Boost considerably more effective than conventional
cooling units. Cavotec is one of the few manufacturers currently offering this
type of system, and it forms a key element of the Group’s comprehensive product
offering for the Airports market. 

Looking ahead

Growing confidence across several of our major markets, and increased
automation and electrification across a wide variety of sectors, are all
positive indicators for our long-term development. Our innovative products and
systems are seen as key to enabling our customers to meet their productivity
and efficiency targets. Furthermore, Cavotec technologies help customers meet
and exceed environmental requirements and ensure the safety of their employees
and others. 

For the coming period, I believe that both our Ports & Maritime and Airports
units will be the primary drivers of our growth. Development in our Mining &
Tunnelling market unit will be slower, as this sector remains burdened by low
commodity pricing and resultant CAPEX reductions. We continue to develop our
innovations and I expect our General Industry market unit, and the Group as a
whole, to benefit from these efforts in the near future. 

I confirm previous guidance for 2015 and expect moderate growth in revenues
coupled with a strengthening EBIT margin towards the second half of the year. I
also reiterate our longer-term financial goals of organic growth of 10% CAGR
and an EBIT margin of 12% over the coming years. 

The regions

Revenues in the Americas, (AMER), amounted to EUR 10,299 thousands compared to
EUR 6,206 thousands in the same period last year. Order intake decreased 73.5%
to EUR 8.604 thousands in 1Q15 compared to the previous year, which was
affected by the large MoorMaster™ order in Canada. Gross operating result was
negative at EUR 2,103 thousands. 

Europe, Middle East & Africa, (EMEA), registered a good order intake in 1Q15,
amounting to EUR 57,806 thousands, further strengthened by the large order from
the Port of Salalah in Oman and other significant orders in the same area.
Order intake was stable compared to 1Q14, resulting in a book-to-bill ratio of
1.51. Gross operating result was positive at EUR 533 thousands. 

Far East and Oceania, (APAC), recorded an excellent order intake in the first
quarter , amounting to EUR 24,457 thousands and including the significant
orders place d by ZPMC. Order intake increased by 92.8% compared to 1Q14,
resulting in a book-to-bill ratio of 2.87. Gross operating result was positive
at EUR 208 thousands. 

The market units

Ports & Maritime continued to be the Group’ s strongest Market Unit with EUR
18,848 thousands, representing 45.6% of the Group’s 1Q15 revenues. Order intake
decreased 16.3% to EUR 34,478 thousands in 1Q15, compared to EUR 41,181
thousands in 1Q14. 

Airports, representing 22.7% of the Group’ s 1Q15 revenues, increased 6.3% to
EUR 9,388 thousands, compared to EUR 8,828 thousands in 1Q14. On the back of a
number of large projects, 1Q15 order intake increased 40.9% to EUR 16,297
thousands compared to EUR 11,566 thousands in 1Q14. 

Mining & Tunnelling, representing 14.6% of total 1Q15 revenues, increased 6.5%
to EUR 6,047 thousands, compared to EUR 5,676 thousands in 1Q14. Order intake
increased 36.3% to EUR 8,956 thousands in 1Q15, compared to EUR 6,572 thousands
in 1Q14. 

General Industry, representing 17% of Group 1Q15 revenues, decreased 14.7% to
EUR 7,028 thousands in 1Q15, compared to EUR 8,241 thousands in 1Q14. Order
Intake decreased 8.1% to EUR 7,575, compared to EUR 8,245 in 1Q14. This
resulted in a book-to-bill ratio of 1.08x that was stable compared to the same
period of last year at 1.00x. 

Revenues, earnings and profitability

Revenues from sales of goods and services in 1Q15 amounted to EUR 41,311
thousands, compared to EUR 40,899 thousands in the same quarter last year. 1Q15
gross operating result was negatively impacted by a change in product mix.
Adjusted operating result, after deducting litigation costs, amounted to a loss
of EUR 3,387 thousands compared to a loss of EUR 627 thousands in 1Q14. 

Financial items were higher in 1Q15 compared to 1Q14, due to favourable
currency exchange differences positively impacting the net profit of EUR 1,743
thousands (negative EUR 1,573 thousands in 1Q14). 

Cash flow

Operating cash flow was negative at EUR 10,616 thousands, compared to negative
EUR 1,889 thousands in 1Q14. Investing activities increased to EUR 952
thousands, compared to EUR 387 thousands in 1Q14. 1Q15 financial activities
amounted to EUR 3,459 thousands, an increase of EUR 3,585 thousands due to
loans and borrowings, compared to negative EUR 561 thousands in 1Q14. 

Net debt

Net debt increased to EUR 27,022 thousands from EUR 20,002 thou sands at the
end of 2014, mainly due to an increase of working capital. As a consequence of
the operating loss and increase of net debt, the leverage ratio increased to
1.4x (FY14: 0.91x). Net debt/equity ratio stands at 18.5% compared to 14.5% at
the year-end. 


On 31 March 2015 the Group had 1,011 full time equivalent employees, compared
to 1,019 on 31 December 2014, and 1,013 on 31 March 2014. 

For the full 1Q15 Report please go to:


For further details please contact:

Michael Scheepers

Group Director, IR & Corporate Communications

+41795024010 or

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