Cavico Issues Guidance for Fiscal Year 2008 and 2009
Monday December 22, 9:00 am ET
LOS ANGELES & HANOI, Vietnam--(BUSINESS WIRE)--Cavico Corp. (“Cavico” or “the Company”) (OTC BB: CVIC - News), a leading infrastructure development company in Vietnam, today announced guidance for its fiscal year 2008 (FY2008) and fiscal year 2009 (FY2009). These amounts represent the Company’s current backlog and management forecasts of Cavico’s future financial performance.
Cavico expects FY2008 revenue to increase by 58.5% to $60.0 million and revenue for FY2009 is expected to grow by 33.3% to $80.0 million. The Company estimates net income of $0.9 million in FY2008 and expects net income to reach $3.2 million, an increase of 255.6%, in FY2009. Cavico forecasts that the anticipated growth will be driven by existing and new operations managed by the Company, including its entry into the wind energy market. The Company expects the increase in mining and construction operations to be led by the growth and development of the Vietnamese economy.
2008E 2009E
Revenue $60,000,000 $80,000,000
Net Income $900,000 $3,200,000
“We continue to see strong revenue growth from our core business of hydropower projects and mining construction. The year 2008 has been a challenging year due to the high levels of inflation and increased interest rates in the last three quarters of the year, which adversely affected our net income in FY2008. However, we have overcome these difficult times successfully and expect to report profit compared to other construction companies in Vietnam which have reported declining revenues and deficit from operations. Our future growth is expected to be driven by our successful expansion into the wind energy market, real estate development, and project investment business,” commented Mr. Hung Manh Tran, vice president of Cavico Corp. “We continue to develop our expertise in managing infrastructure construction projects. Our aim is to be able to support the Vietnamese government in its efforts to improve the infrastructure in the country. We have developed strategic partnerships with investors in our core business and will expand the support to execute our real estate development strategy. We are confident of our strong performance and are on track to meet our financial projections,” added Mr. Tran.
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