Cavotec half year profit up 65 pc

Friday, 29 August 2008

Global engineering group Cavotec MSL Holdings, posted a 65 percent rise in half year net profit to 5.4 million euros ($NZ11.5 million).

That included income from the disposal of its Gantrex operations in January.

Operating profit -- earnings before interest and tax -- for the six months to the end of June was 5.1m euros, compared to 5.7m euros for the corresponding period a year earlier.

The group's consolidated sales revenue from operations for the six months was up 5.2 percent to 66m euros.

The group, which has a corporate office in Switzerland, was created when Dutch firm Cavotec was bought in a reverse takeover by Mooring Systems of Christchurch in January 2007.

Christchurch-based subsidiary Cavotec MoorMaster develops automated moorings systems.

Releasing the half year results today, chief executive Ottonel Popesco said market pressures had forced some of the group's customers to re-evaluate the size and timing of their capital expenditures.

Cavotec MSL had experienced some minor delays both in receiving expected new orders and in delivering a handful of already registered orders, he said.

But throughout the period, Cavotec MSL managed to operate with relative resilience, which could be seen from the group's increasing revenues and its record 48.8 million euros July order book.

The group had continued with some of the investments started in 2007, including that at MoorMaster in this country, Mr Popesco said.

One of the main driving forces of optimism so far in 2008 had been the transformative commercial success of MoorMaster.

Conceived initially as primarily a safety enhancement feature for large ferry mooring operations, MoorMaster had developed into a technology with an increasingly diverse range of applications -- each confirmed within this calendar year.

MoorMaster was now an accepted technology in three distinct ports and maritime applications: canal locks, ferry operations and container terminal operations.

With significant orders in hand and other active projects with other companies, the group believed MoorMaster's transition from a developmental to a commercially consistent technology had occurred.

Beginning in the second half of 2008, Cavotec MoorMaster would begin fulfilling the orders and contributing a significant amount of ongoing revenue and profitability to the group.

The group was confident of achieving its existing 2008 revenue and ebit forecast of 143m euros and 14m euros, respectively.

Cavotec shares were unchanged by early afternoon today at $4.39, having ranged between $5.30 and $3.85 in the past year.

NZPA