Cavotec Reports Fourth Quarter Earnings, Full Year Summary

Acquisition of Combibox provides company with a foothold in several new geographical areas


Although there remains uncertainty in the short-term regarding global economic growth, we are in a strong position thanks to our solid order book – EUR 110.4 million as of January 2013 – our broad product range and our extensive geographic scope enabling us to capitalise on profitable growth opportunities in the period ahead.

Looking at our Market Units we can expect continued growth to come from our Ports & Maritime MU with interesting prospects for MoorMaster and AMP technologies, combined with a renewed focus on less mature markets such as E-RTGs. The offshore industry is set to continue its significant growth seen in 2012. Similarly, our Airports MU stands to build on its substantial 2012 growth, mainly thanks to the on-going development of our complete system offering, significantly boosted by the addition of the INET product range.

The mining industry in general is set for a tough year ahead, especially with regards to the hard rock mining sector. As a consequence our Mining & Tunnelling MU will focus on further developing our presence in the open pit mining industry and related areas to compensate this trend.

Our General Industry MU will remain mostly stable compared to last year with a decrease in activity for cranes and robotics sectors offset by significantly increased activity in land rigs and defence.

We remain fully committed to the financial targets established at the time of our listing. The on-going initiatives to improve our margins have seen considerable progress despite pressure from several exceptional items, which we fully expect not to see repeated in 2013.

A strong emphasis will remain on driving forward cost savings and productivity improvements at our Centres of Excellence and other production facilities, while safeguarding our ability to deliver the best-in-class performance expected by our customers. We will continue to explore opportunities to develop our service revenues, secure the synergies from recent acquisitions, and deliver higher return on investments.

We have seen some excellent achievements this past year and I’m confident that 2013 will see a continuation of this positive trend.

The regions

The Americas increased revenues in FY12 by 52.9% to EUR 40,442 thousands, with both Ports & Maritime and Airports registering an increase more than 65% each. The new production facility in USA Inc. and the integration with the INET operations also contributed to the strong performance for the region. Despite the on-going litigation negatively affecting the Gross Operating Result, the underlying profitability was good. Order Book ended at EUR 23,433 thousands, an increase of 36.7% compared to FY11.

The Europe & Africa region posted a very strong performance in 2012, with revenues amounting to EUR 168,912 thousands. This increase represents a total growth of 25.4%, with a positive trend in activity registered in all four market units. Gross Operating Result reached EUR 19,375 thousands, an exceptional growth of 147.3% compared to FY11.

The main contributing factors to this growth are the strong results from our activities in Scandinavia and UK, and the re-export of our products and systems by OEMs to BRIC and other non-European countries, mainly thanks to the specification of our equipment through our global sales network. Order Book for the MU stands at EUR 54,996 thousands.

Middle East & India´s revenues amounted to EUR 24,215 thousands in FY12, a slight decrease compared to FY11 partially offset by an increase of day-to-day business with 31.7%. Despite the lack of larger projects in the region, the Order Book increased throughout the year by 6.6%, ending at EUR 22,427 thousands. Book to bill ratio reached 1.1.

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