Cavico Announces Third Quarter Fiscal 2010 Financial Results
HANOI, Vietnam, Nov. 23, 2010 (GLOBE NEWSWIRE) -- Cavico Corp. (Nasdaq:CAVO), a major infrastructure construction, infrastructure investment, and natural resources conglomerate based in Vietnam, today announced its financial results for the third quarter ended September 30, 2010.
Mr. Ha Quang Bui, Chairman and Chief Executive Officer of Cavico, commented, "We are nearing a corner in our operational performance, as a significant number of our projects are moving from the early stages, which involved high costs compared to the revenue generated, into the middle stages, where the gross margin is expected to be higher since the increase in revenue will be higher than the related cost increase. As shown in the Vietnam Power Development Master Plan VI, the Vietnamese government plans to build 48 hydropower stations exceeding 50 MW by 2025, with total expected capacity of 21,300 MW, and over the period from 2006 to 2025 the electricity sector will need around $52 billion invested in power generation. We expect to benefit significantly from the Vietnamese government's focus on the electricity shortage and development of the related projects, as well as the overall growth of Vietnamese economy."
RevenuesRevenue from the Civil Construction segment for the third quarter of 2010 was $12.3 million, compared to $14.8 million in the same period of 2009. The decrease in revenue was due primarily to an increase in the currency conversion rate between the Vietnamese Dong (VND) and the U.S. dollar. Revenue from the Mining Construction segment during the third quarter of 2010 was $172,709. No 2009 comparison figures are available, as Cavico Mining was first included as a consolidated subsidiary of the Company in 2010. Revenues from other Commercial Activities, which includes leasing machinery and equipment and selling raw materials and steel fabrication, decreased $64,387, or 2.9%, to $2.1 million in the third quarter of 2010, down from $2.2 million a year ago. The revenue decrease in Commercial Activities was primarily attributable to an increase in the currency conversion rate between the Vietnamese Dong (VND) and the U.S. dollar. Third quarter commercial activities revenue in Vietnamese Dong increased 6% compared to the same period in 2009.
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