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Cavotec profit up, bullish on earnings outlook

Thursday 26th August 2010

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Cavotec MSL Holdings, the global engineering group and owner of Christchurch-based MoorMaster, has posted a 3.5% increase in first-half earnings and said it looks set to return to 2008 profit levels as its markets recover. 

Net income rose to $5.2 million in the six months ended June 30, with book orders up 75% from a year earlier.

"The first half of 2010 showed a steady resurgence of demand from our customers worldwide, especially in the airports and mining sectors," said chief executive Ottonel Popesco.

"Based on our current expectations and in line with the growing optimism throughout our market sectors, we are confident that we will return to our 2008 level of revenues and profitability."

Operating revenues before finance costs and tax fell 11.8 % to $6.8 million, and sales fell 2.1% to $118.2 million. The company said this was a result of the exclusion of revenue from its Bahrain project despite having received "several substantial payments" for work already in process. Revenues from this project are expected to be recognized in the year-end results.

The NZX-listed company has 10 global research and engineering centres, including its New Zealand design office, and 28 sales offices around the world.

MoorMaster was merged into the Cavotec MSL in September 2006 when the innovative ship mooring systems annual turnover was about $200m.

Shares last traded at $2.45 and have declined 3.9% so far this year.

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