Q2 2024 Cavotec SA Earnings Call Transcript
Key Points
- Cavotec SA (OSTO:CCC) reported a positive EBIT for the sixth consecutive quarter, with the EBIT margin more than doubling from the previous year.
- The company saw an 11% increase in order intake, driven by strong demand in ports and maritime sectors.
- Cavotec SA (OSTO:CCC) achieved a positive net profit for the fourth consecutive quarter, reflecting successful strategic priorities and change programs.
- The company reported a significant improvement in operating cash flow, from a loss of EUR4.6 million last year to a positive EUR5 million this quarter.
- Cavotec SA (OSTO:CCC) inaugurated a new facility in Chennai, India, enhancing production capacity and serving as a supply hub for global operations.
- Revenue dropped by 7% compared to the same quarter last year, reflecting the project-driven nature of the business.
- The industry division's performance remains unsatisfactory, with ongoing efforts needed to implement change programs and improve profitability.
- A cyber incident in the quarter impacted the operating result by EUR0.6 million, although it is now controlled and closed.
- The order backlog decreased, which was an active decision to focus on profitability rather than volume.
- The company is still in the early stages of assessing the potential move of its registered office from Switzerland to Sweden, which could incur costs.
Good morning, and welcome to Cavotec's second-quarter presentation. I am David Pagels, the CEO of Cavotec. And I'm here today together with, as usual, Joakim Wahlquist, Cavotec's CFO.
So let me start with a short introduction to Cavotec as usual. Cavotec has close to 50 years of experience. And next year, we will actually celebrate our 50 years anniversary. Over those 50 years, Cavotec has built a strong position as a leading cleantech company with a global presence.
Our offering consists of the design and delivery of solutions to electrified ports, vessels, and other industrial applications, heavy-duty vehicles that are used for, in example, for the mining industry. Cavotec's largest product groups are shore power system, motorized reels, crane electrification, and, of course, automatic mooring systems.
Our most important competitive advantage is that our solutions and our services contribute to the decarbonization of ports and terminal as well as for vessels and ships and, of
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