According to a company statement, day-to-day business was good throughout the quarter with significant increases in revenues registered by most of the company’s Market Units (MUs). The Ports & Maritime MU was the strongest performer, exemplified by a significant order for Alternative Maritime Power reeling systems in Southeast Asia, posting an increase in revenues of 38.2% compared to Q3, 2011.
Although activities in the mining sector also continued to grow, the Group’s General Industry MU reported lower revenues compared to Q3, 2011 in line with an overall softening in the sector and despite a partial offset from the increase in volume from new business areas.
In light of the results and the strong performance expected for the next quarter underpinned by the completion of the MoorMaster™ automated mooring project in Pilbara, Australia and a strong Order Book, the company is confident in upgrading the expected FY12 revenues to the top end of its previously communicated guidance, which means an increase of between 13% to 15% compared to FY11 revenues.
Despite this, the company warned that it cannot ignore the political and economic headwinds currently facing the world and the uncertainty they bring. Economic conditions throughout a large part of the world remain challenging and Cavotec continue to see the impact of these trends in varying degrees within its MUs. These macro-economic developments are in part mitigated by the positive signals received from within niche markets, leading the Group to adopt a cautiously optimistic posture for the coming period.
Highlighting that strengthening and consolidating the various segments of an expanding organisation such as Cavotec requires a dedicated level of investment, the company believes it is on the right track with the on-going integration processes for INET and CombiBox and is confident their respective contributions to the Group results will increase in the coming months.
The Americas registered a strong performance in 3Q12 with revenues rising 31.1% to EUR10, 09m; Europe & Africa maintained their positive momentum posting a 31.5% increase in revenues: The Middle East & India registered a slightly weaker performance mainly due to a lack of large scale projects. Despite this, continued cost control measures and steady day-to-day business ensured gross operating results broke even.
Australasia registered the largest with revenues amounting EUR14.3m, up 162.2% compared to Q3, 2011 and the Far East continued to grow steadily posting a 22.4% increase in revenues.