Cavotec Follow

Cavotec SA
Half Year financial report

Cavotec SA - 2Q17 Report

Second quarter 2017

  -- Order intake reached EUR 49.0 million (2Q16: 50.3), a decrease of 2.5%
     compared to previous year.
  -- Order book increased 5.2% to EUR 110.8 million (2Q16: 105.2).
  -- Revenues for the quarter totaled EUR 50.3 million, a decrease of 6.7%
     compared to previous year (2Q16: 53.9)
  -- Operating result (EBIT) amounted to EUR -2.3 million (2Q16: +7.5),
     corresponding to a margin of -4.6% (2Q16: 13.9 %). The operating result
     included EUR 0.5 million of non-recurring costs. Previous year figures
     include non-recurring income EUR 4.8 million from US litigation settlement.
  -- Net result for the period was a loss of EUR -5.7 million (2Q16: +6.1).
     Earnings per share basic and diluted decreased to EUR -0.073 (2Q16:
     +0.078).
  -- Operating cash flow was EUR -2.1 million (2Q16: -2.1).
  -- Net debt decreased to EUR 33.2 million (2Q16: 34.8).

First half - year 2017

  -- Order intake reached EUR 111.0 million (1H16: 106.8), an increase of 3.9%
     compared to previous year.
  -- Revenues for the six months totaled EUR 103.5 million, an increase of 3.5%
     compared to previous year (1H16: 100.0)
  -- Operating result (EBIT) amounted to EUR 1.2 million (1H16: +5.0),
     corresponding to a margin of 1.1% (1H16: +5.0%). The operating result
     included EUR 0.7 million of non-recurring costs. Previous year figures
     include non-recurring income EUR 4.8 million from US litigation settlement.
  -- Net result for the period was a loss of EUR -3.8 million (1H16: +2.2).
     Earnings per share basic and diluted decreased to EUR -0.048 (1H16:
     +0.028).
  -- Operating cash flow was EUR -2.3 million (1H16: -4.9)



Comment from the CEO

Building on our strengths and seizing opportunities for increased efficiency

It has been an exciting couple of months for me getting to know the Cavotec
business before taking over as CEO on July 1st. I’ve travelled around the world
visiting our key markets in Europe, the Middle East, Asia and North America to
learn more about what makes Cavotec tick. It has been encouraging to see our
work creating and delivering innovative products and solutions. 

Recent months have also been an opportunity to meet many of the talented
individuals that will ensure Cavotec continues to meets its customers’ demands
both today and in the future. It is clear that we have a very strong sales and
customer-focused culture in Cavotec – a key strength to build on for the
future. 

I’ve also had the opportunity to meet and listen to many of our customers
around the world. The feedback has been consistent; We have a strong reputation
in the market and are seen as an attractive, innovative and technology-driven
partner. We are well-positioned to help our customers take advantage of global
industrial trends such as automation and a push for greener operations. 

Our strengths are many, but as our customers expect us to be a partner in a
world that is changing at a rapid pace, we need to have a streamlined and
structured approach to how we operate. Our recent change from a geographical to
a customer centric organisation helps Cavotec move in that direction, but we
must continue to look for every opportunity to increase efficiency and take
full advantage of our global footprint, not least in our supply chain. 

Our performance in the quarter is clearly unsatisfactory and at the top of my
agenda is to make sure we have a structured approach to getting our products to
customers on time. Doing so will ensure we fulfil our commitments, while also
enabling us to better manage costs. I have initiated the work on a plan for
putting us back on a path of profitable growth. 

Looking ahead

While we still see 2017 as a transitional year, I expect the second half to be
stronger than the first half, with moderate revenue growth for 2017 overall. As
we move into the fall and the next quarter, I will work with the team to
identify and take the proper steps to improve our operational performance and
to ensure future profitable growth. We must take advantage of our strengths in
sales, customer focus and commitment to technology and innovation, while also
embracing opportunities that will allow us to operate more efficiently. 



ENDS

This is a summary of the 2Q17 published today. The complete 2Q17 report and
full year summary with tables is available at
http://investor.cavotec.com/financials.cfm. Investors should not rely on
summaries only, but should review the complete reports with tables. 

For further details, please contact:

Kristiina Leppänen
Group Chief Financial Officer & Investor Relations
Telephone: +41 91 911 40 11 — Email: investor@cavotec.com

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 2 August
2017, 12:00 CEST.

Show as PDF

Show original from GlobeNewswire

This information was distributed by GlobeNewswire https://www.globenewswire.com/