Press release -
Cavotec SA - 1Q16 Report
Similar to last year our first quarter was weak, albeit in line with our own expectations, with 1Q16 revenues amounting to EUR 46.1 million, an 11.6% increase on the same period last year. This improvement was mainly due to increased day-to-day business order intake, and stronger overall activity in a number of our key markets. Currency exchange differences had a negative impact on the quarterly revenues while organic growth was positive at 13.2%. Gross margin remained stable for the quarter. Order intake for the period decreased by 16% year-over-year, amounting to EUR 56.6 million and our order book has grown 10.6% to EUR 108.9 million from year-end.
We registered strong day-to-day business during the quarter, and achieved several R&D milestones. One major development was the completion of a series of At Sea Demonstrations (ASD) of the innovative US Navy Advanced Mooring System (AMS) for novel ship-to-ship mooring applications, which incorporates Cavotec's MoorMaster™ automated mooring technology.
Following successful Factory Acceptance Testing (FAT) at Cavotec USA in North Carolina, and System Integration Testing (SIT) at project partner Oceaneering' s facility in Maryland, the ASD were conducted at US Naval Base Coronado in California.
The system is now clear for the next phase of its development. This exciting new evolution of MoorMaster™ promises a fundamental improvement in offshore mooring operations, and one that has considerable potential for use in a wide range of commercial applications. In further positive news for MoorMaster™, the estimated total number of moorings completed by MoorMaster™ units worldwide crossed 170,000.
The first months of 2016 have developed in line with our expectations in terms of sales, turnover and overall performance. With the current general uncertainty and cautiousness in the global economy set to continue, I do not currently foresee any significant changes to the outlook we published in our 4Q15 report, in which we identified a period of softer order intake and a s lowdown in larger projects.
We have refocused our sales efforts on core markets, innovations and offerings. Innovations and offerings we have refocused on include Alternative Maritime Power shore connection, Automatic Plug-in System for ships and cranes, MoorMaster™ automated mooring, and further improvements to our system integration capacity for Airports. Achievements in these areas are forming an important pillar of our strategy for future growth.
As indicated in recent statements, our Ports & Maritime and Airports markets are the two areas that are expected to deliver the greatest amount of growth in the years ahead, strengthened in part by far-reaching environmental legislation and the on-going drive to increase efficiency. Both trends are likely to generate demand for our technologies that reduce environmental impact and improve operational efficiency.
In parallel, we continue our program to actively streamline our operations in a variety of ways. Given the positive results to reduce costs to date, I expect to build on these successes, and envisage further improvements going forward.
The effects of several of these measures will not be immediate. I am, however, confident that our organisation as a whole will emerge stronger, more focused, and more profitable thanks to the actions we are currently taking, and will continue to take in the coming months.
This is a summary of the 1Q16 published today. The complete 1Q16 report with tables is available at http://investor.cavotec.com/results.cfm. Investors should not rely on summaries only, but should review the complete reports with tables.
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The information in this release is subject to the disclosure requirements of Cavotec SA under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on 10 May 2016, 12:00 CEST.
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.