Cavotec Reports Fourth Quarter Earnings, Full Year Summary

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


Australasia increased revenues by 22.3% to EUR 37,481 thousands. This increase mainly comes from our activities in the mining sector and the delivery of MoorMasterâ„¢ units for projects in Australia. Gross Operating Result amounted to EUR 2,852 thousands, a decrease compared to FY11 due to more project-based revenues. Order Book ended at EUR 12,243 thousands.

The Far East registered a strong performance for the year with revenues totalling EUR 30,477 thousands, up 12.8% compared to FY11. The region had the largest increase in order intake, 37.8%, with the increase of activity in Hong Kong the main contributor to this positive development. Order Book reached EUR 31,560 thousands, up 91.4% compared to FY11 and with a book to bill ratio at an exceptional 1.5.

Revenues, earnings & profitability

Quarterly results

Revenues increased by 11% to EUR 66,884 thousands in 4Q12 compared to the record EUR 60,239 thousands in the same period of last year. Operating result amounted to EUR 7,220 thousands, more than double compared to 4Q12. Excluding the EUR 1,494 thousands cost related to the restructuring of the German operations and the on-going litigation, adjusted operating result reached EUR 8,714 thousands compared to EUR 4,340 in 4Q11.

Financial items were higher compared to the same period last year due to negative exchange fluctuation, which was only partly offset by lower interest expenses. The tax rate in the period was 17.3% benefitting from positive movements of deferred tax assets. Net profit reached EUR 5,958 thousands compared to a loss of EUR 566 thousands in 4Q11.

Full-year results

Revenues in 2012 amounted to EUR 220,072 thousands (189,969) a 6.8% organic growth rate; acquisitions contributed 3.5% while the positive currency effect was 5.5%.

Adjusted operating result increased to EUR 21,494 thousands resulting in an operating margin of 9.8% compared to 7.5% in 2011. Operating result increased by 41.7% in 2012 to EUR 17,978 thousands against EUR 12,684 thousands in 2011.

Cash flow

Operating cash flow for the quarter amounted to EUR 2,085 thousands, compared to negative 4,780 thousands in 4Q11. Year to date, operating cash flow totalled EUR 11,900 thousands a significant improvement compared to 2011 (5,164). Financial activities amounted to negative EUR 5,036 thousands following decreased borrowing and the payment of capital reduction. Cash flow from investing activities was negative at EUR 12,183 thousands due to investments in the expansion of the manufacturing facilities, the acquisition of CombiBox and the payment of the first tranche of the Inet earn-out.

Net debt

Net debt increased to EUR 24,511 thousands compared to EUR 24,068 thousands at the end of third quarter (FY11: EUR 23,708). Twelve months rolling leverage ratio (Net Debt/ EBITDA) ended at 1.13 (FY11: 1.38) and debt/equity ratio decreased to 22.9% from 25.0% at the end of 2011. At the beginning of 2013, the Group secured a EUR 15,000 thousands increase of the existing syndicated loan facility expiring in 2016 at the same conditions.

Employees

On 31 December 2012, Cavotec employed 890 full time equivalent people, a decrease of 6 compared to 31 December 2011.

For further details please contact:

Michael Scheepers - Director, Investor Relations & Corporate Communications

Telephone: +41919114011

Email: investor@cavotec.com

Cavotec is a leading global engineering group, developing innovative technologies that enable the maritime, airports, mining and tunnelling, and general industry sectors to operate productively and sustainably. 

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