Q3 2024 Cavotec SA Earnings Call Transcript
Key Points
- Cavotec SA (OSTO:CCC) reported a revenue growth of 5.1% in the third quarter, driven by strong sales in the industry segment.
- The company achieved a positive EBIT for the seventh consecutive quarter, with a significant growth of 76.3% over the previous year.
- Cavotec SA (OSTO:CCC) has a strong market position supported by megatrends and regulations aimed at reducing emissions and noise in critical infrastructures.
- The company has a large installed base in over 80 countries, providing a solid foundation for customer relations and service business growth.
- Cavotec SA (OSTO:CCC) is actively working on strategic change programs and supply chain improvements, which are starting to show positive impacts on profitability.
- Order intake decreased by 6% in the quarter, reflecting fluctuations in project-driven business and timing of order signings.
- The industry segment showed a decrease in EBITA margin, indicating challenges in profitability despite revenue growth.
- Cash flow was negatively affected by increased working capital due to lower prepayments and timing of receivables.
- Lead times for projects in the ports and maritime segment remain long, ranging from 1 to 2 years, which could impact revenue realization.
- The company is still undergoing transformation efforts, indicating ongoing challenges in achieving desired operational efficiency and profitability.
Good morning and welcome to Cavotec's third quarter presentation.
I am David Pagels, the CEO of Cavotec and together with me today, I have as usual my Chief Financial Officer Joakim Wahlquist. So to start a little bit with a short introduction to Cavotec, I know we have a lot of new matter of newcomers in the in the call as well. So Cavotec has close to 50 years of experience and next year, we will actually celebrate our 50 years anniversary, which is quite cool milestone over these 50 years, Cavotec has built a strong position as a leading clean tech company with a global presence. Our offering consists of design and delivery of solutions to connect to automate and to electrify ports, vessels, other industrial applications like heavy duty vehicles that are used in. For instance, the mining industry, our most important competitive advantage is that solutions and services contribute to the capitalization of ports, mines and other industrial applications. This trend is strong all over the world and we are in it and we've been there since 50 years.
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