KEY POINTS:
Cavotec, the Dutch company that purchased Canterbury company Mooring Systems last year, yesterday reported a June half-year gross profit of €27.8 million ($55 million), up from €21.5 million a year ago.
The company anticipates strong demand.
"Despite the recent volatility in the global financial markets, our key customers have continued to signal strong prospects throughout 2007," chief executive Ottonel Popesco said.
"As MoorMaster in New Zealand, Micro-Control in Germany, and our major innovations like AMP, PC Air and 'ERTG-conversions' begin to contribute significant turnover in 2008 and beyond, we expect our rates of turnover growth and ebit (operating profit) margin to also increase."
He forecast 2007 revenues to grow beyond €130 million with an ebit around €12 million, "thus moderately improving on our earlier published forecast for the year".
The ports equipment supplier said margins increased to 42.9 per cent from 41.9 per cent.
"This is consistent with our previous expectation that, as Cavotec continues to sell more of its own manufactured goods from companies like Specimas, Connectors, Fladung and Alfo, our margins will also increase due to larger volumes."
Operating profit (ebit) was slightly down at €5.7 million from €5.8 million and the consolidated net profit fell to €3.3 million from €3.8 million due to higher expenses from a heavy investment programme.
Revenue rose 26 per cent to €65 million.
The comparisons related to Cavotec Group Holdings NV, before it backed into Mooring Systems in the reverse takeover.
Cavotec said its growth had been completely organic and its order book had increased 22.6 per cent to €41.3 million in June, from €33.7 million at December 31.
Ebit margin for the six months ended June 30 was 8.8 per cent, or 21 per cent higher than the 7.3 per cent ebit margin of the previous six-month period ending December 31.
"I view this as confirmation that our investments are continuing to pay off," Popesco said.
He said the result included substantial costs from Moormaster and Micro-control in Germany - two investments that had yet to generate other than marginal turnover.
Excluding those, Cavotec's margins from traditional activities were up 10.2 per cent before interest and tax.
In the Americas, turnover was down 8.1 per cent but gross margin increased to 41.5 per cent.
Cavotec expects sales in the Americas to increase throughout 2007 and beyond as innovations, especially in the Ports & Maritime and Airports markets, make further inroads.
- NZPA
