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Cavotec SA – 2Q15 Report

12:00 / 5 August 2015 Cavotec Press release

Cavotec SA – 2Q15 Report

This is a summary of the 2Q15 report published today. The complete 2Q15 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 to EUR 58.8 million (2Q14: 53.2), an increase of 10.6%.
     Adjusted for currency exchange differences sales increased 1.7%.
  -- Adjusted operating result (EBIT) ended with a profit of EUR 4.1 million
     (2Q14: 0.4), corresponding to a margin of 7.0% (2Q14: 0.8%).
  -- Net result for the period was positive at EUR 0.8 million (2Q14: -1.4).
  -- Order Intake increased to EUR 62.4 million (2Q14: 50.7), an increase of
     23.3%. Adjusted for currency exchange differences Order Intake increased
  -- Solid order book at EUR 130.6 million (FY14: 101.0).
  -- Book to bill ratio at 1.30x compared to 1.26x in 1H14.

CEO’s comments

2Q15 results followed our earlier guidance with revenues amounting to EUR 58.8
million, a 10.6% increase compared to 2Q14. Currency exchange differences made
a positive impact on our 2Q15 result, and we continue to monitor exchange rate
fluctuations on an on going basis to minimize our exposure. During the quarter
we continued our focus on raising profitability and as a consequence our gross
margin has increased steadily over the past twelve months. 

As previously announced, 2Q15 also brought to an end to the long running
litigation against Mike Colaco with a 12-person jury issuing a verdict in
favour of Cavotec. Irrespective of whether Colaco seeks to appeal the verdict,
we can now move beyond this issue, and I look forward to fully focussing on
moving forward with our Cavotec INET operations in the US. 

Another milestone was reached on 7 July when we fully finalised EUR 95 million
Senior Revolving Credit and Bank Guarantee Facilities with a syndicate of
leading global banks. As well as refinancing Cavotec’s existing syndicated
credit agreement, the new resources will be used to underpin our M&A
activities, product development, and growth into new and existing markets. 

Order intake remained strong in 2Q15, showing a good mix of day-to-day business
as well as smaller and larger projects. In particular, our Airports Market Unit
registered several significant orders, including the milestone order received
in June for the Soekarno-Hatta international airport in Indonesia. These orders
highlight the international aspect of our operations and underline the strength
of our business model and capacity to manage large, complex projects. 

Looking ahead

Throughout 2Q15 our major markets developed positively and I expect a similar
trend in the coming quarters as the process of automation and electrification
at ports and airports continues to gather momentum. The ongoing turbulence in
the oil & gas sector will continue to impact our sales but with growth in other
markets I am confident we will be able to offset any major decline. In our
mining market segments I foresee CAPEX to remain low for the foreseeable
future, while I expect moderate growth in general industry as it will benefit
from increased focus on certain key product lines. 

In general, I expect momentum for the Group to continue to pick up over the
coming quarters. Effective cost control remains an important point of focus for
us to ensure sustained future growth. At the same time, we also continue to
invest in innovation and in strengthening our workforce in key areas, allowing
us to continue meeting our customers’ expectations wherever they are located
around the world. 

2015 guidance remains unchanged and I expect EBIT to continue to strengthen in
the second half of the year. I also reiterate our longer-term financial goals
for the coming years. 

For the full 2Q15 Report please go to:


For further details, please contact:

Michael Scheepers

Group Director, IR & Corporate Communications

+41795024010 or

The information in this release is subject to the disclosure requirements of
Cavotec SA under the Swedish Securities Market Act and/or the Swedish Financial
Instruments Trading Act. This information was publicly communicated on 5 August
2015 at 12:00 CEST.

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