CARGOTEC CORPORATION, INTERIM REPORT, 29 APRIL 2016 AT 8.30 AM EEST
Cargotec's January-March 2016 interim report: Profitability improved according to target
- Strong order intake in Kalmar and Hiab
- MacGregor profitability satisfactory considering current market situation
- Strategy execution proceeding as planned
January-March 2016 in brief
- Orders received decreased 4 percent and totalled EUR 903 (939) million.
- Order book amounted to EUR 2,095 (31 Dec 2015: 2,064) million at the end of the period.
- Sales declined 7 percent and totalled EUR 828 (889) million.
- Operating profit excluding restructuring costs increased 12 percent and was EUR 58.5 (52.3) million, representing 7.1 (5.9) percent of sales.
- Operating profit was EUR 57.7 (51.3) million, representing 7.0 (5.8) percent of sales.
- Cash flow from operations before financial items and taxes totalled EUR 90.8 (51.6) million.
- Net income for the period amounted to EUR 39.1 (36.4) million.
- Earnings per share was EUR 0.61 (0.56).
Outlook for 2016 unchanged
Cargotec's 2016 sales are expected to be at the 2015 level (EUR 3,729 million) or slightly below. Operating profit excluding restructuring costs for 2016 is expected to improve from 2015 (EUR 230.7 million).
Cargotec's key figures
|Order book, end of period||2,095||2,469||-15%||2,064|
|Operating profit, %*||7.1||5.9||6.2|
|Operating profit, %||7.0||5.8||5.7|
|Income before taxes||50.9||47.5||186.2|
|Cash flow from operations||90.8||51.6||314.6|
|Net income for the period||39.1||36.4||142.9|
|Earnings per share, EUR||0.61||0.56||2.21|
|Net debt, end of period||603||789||622|
|Personnel, end of period||11,203||10,698||10,837|
*excluding restructuring costs
Cargotec's CEO Mika Vehviläinen:
The start of the year 2016 was strong in Kalmar and Hiab, whereas the market situation in MacGregor remained challenging, as in the previous year. Despite the lack of orders for large automation projects, orders for Kalmar reached the comparison period's level and Hiab's order intake grew eight percent from the comparison period. Our sales declined seven percent from the comparison period. As earlier announced, the timing of Kalmar's deliveries lowered its first-quarter volume. MacGregor's sales were burdened by the challenging market situation. However, Kalmar's strengthened order book supports our growth target for the full year. According to target, our profitability improved to seven percent thanks to Hiab's very strong quarter. Due to restructuring measures undertaken in 2015, MacGregor's profitability was satisfactory considering the current market situation.
Execution of our strategy published at the end of 2015 is proceeding according to plan in all three focus areas: services, digitalisation and leadership development. In March, we closed the INTERSCHALT acquisition, which is important for the development of our services and software businesses. In early April, we organised our first hackathon, where 57 hackers-chosen from numerous volunteers-invented, among other things, the use of mobile technologies at ports. At the exhibition for load handling equipment, we also introduced a new virtual way of controlling a forestry crane remotely from inside a truck cabin. In addition, during the quarter we launched an internal leadership development programme, which will continue throughout the year.
Press conference for analysts and media
A press conference for analysts and media, combined with a live international telephone conference, will be arranged on the publishing day at 10:00 a.m. EEST at Cargotec's head office, Porkkalankatu 5, Helsinki. The event will be held in English. The report will be presented by CEO Mika Vehviläinen and Executive Vice President, CFO Eeva Sipilä. The presentation material will be available at www.cargotec.com by at 10:00 a.m. EEST.
The telephone conference, during which questions may be presented, can be accessed using the following numbers with access code Cargotec/3057834:
FI: +358 9 6937 9590
SE: +46 8 5065 3937
UK: +44 20 3427 1903
US: +1 646 254 3365
The event can also be viewed as a live webcast at www.cargotec.com. An on-demand version of the conference will be published at Cargotec's website later during the day.
For further information, please contact:
Eeva Sipilä, Executive Vice President and CFO, tel. +358 20 777 4104
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084
Cargotec (Nasdaq Helsinki: CGCBV) is a leading provider of cargo and load handling solutions with the goal of becoming the leader in intelligent cargo handling. Cargotec's business areas Kalmar, Hiab and MacGregor offer products and services that ensure our customers a continuous, reliable and sustainable performance. Cargotec's sales in 2015 totalled approximately EUR 3.7 billion and it employs almost 11,000 people. www.cargotec.com