Cavotec’s Interim Report 2010 published
Cavotec is pleased to announce the publication of our Interim Report 2010; a period in which we recorded a 75.3% rise in orders on 1H 2009, to EUR 78.0 million. Our 12-month rolling order intake increased 14.7% on the same period last year.
The first half of 2010 showed a steady resurgence in demand from our customers worldwide, specifically in the airports and mining sectors. Despite the overall low level of investment in the ports sector during the period, we were able to record some promising results for niche systems such as AMP™ and MoorMaster™. The general industry sector is also starting to pick up, specifically in France and Germany, heralding a return to an overall positive economic climate.
Cavotec won several important orders for various airports and ports related projects in the period. For example, our Airports unit has seen a number of new orders at airports in China, India, France, Argentina, and Qatar; and crucially, our first airports project in Africa in coordination with partners in the Middle East.
Work on our project at Bahrain International Airport continues to progress to schedule. In July, the client successfully commissioned the first PCAir units at the Cavotec Fladung facility in Germany. We expect the final commissioning phase to take place as planned, during Spring 2011.
Our Ports & Maritime unit has reported encouraging results with an order for eight MoorMaster™ units for the Port of Dampier in western Australia. Also of note for the period: our cooperation agreement with German engineering group Vahle, to market E-RTG systems. This agreement will expand our capacity to deliver these systems in markets where we previously lacked access.
We also continue to win a large number of small projects for applications dotted all around the world. This positive trend suggests that the global economy, despite recent difficulties in Europe, is in a better position than this time last year. Based on our current expectations, we are confident that we will return to our 2008 level of revenues and profitability.
Was hoping to have called in to the Interim results call and asked some questions.
From what I read into from results the company has some exciting prospects for 2011. Some Moormaster initial projects completed and proven, big airport contracts showing to big players what the company can do, and developments from US Navy projects.
Was hoping that with the recent release of the 2nd quarter report there would be some comment from readers, especially in these times as these with the world trying to pull out of the GFC and with respect to the depressed share price. Has Cavotec considered buying shares for treasury stock while they are at this sun-$3 basement price? (imho)
What developments have been made in respect to the new ‘Investor Relations’ role? Haven’t seen much media releases from the results and I am sure brokers/investors still broadly see Cavotec as ‘that Moormaster’ company.
Thanks for your post. It’s unfortunate you weren’t able to take part in the conference call. We have our CEO’s 1H10 presentation up on the Cavotec website available for download.
Concerning a possible “buy-back”. We have discussed this but we decided against it as it risks to be ineffective (due to the very poor liquidity) and, in our opinion, could significantly alter the market price.
Concerning the “new” Investor Relations role, I would like to point out that it’s not a new role as such, but a continuation of what was done in this area prior to my appointment. I am happy to report that we had many good and in-depth meetings with investors and fund managers during our visit in August, where it became very apparent that our other, non-MoorMaster activities, are followed ever more closely and actively.
Yes, I will ensure I will be at the next conference call so I can ask question and voice concerns.
Agree with your comments on ‘buy-back’ plans … yes it is an illiquid stock which, if buying interest was increased would cause wild swings in price. I do still think though that the illiquidity is, in part, a result of poor media handling by Cavotec.
From my research I do see upside in next quarter with 3 factors getting my attention :
1 – The inclusion of revenues form Bahrain project
2 – Global media report highlighting the global airline industry recovery
http://www.mb.com.ph/articles/278477/global-airlines-recover-faster-profit-forecast-raised-89-b
3 – expansion plans that Rio has signed off for the Dampier Port (Pilbara Region).
http://www.ibtimes.com/articles/65209/20100924/rio-tinto-sets-aside-242-million-more-for-dampier-port-expansion.htm