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Cargotec’s financial statements review 2019: Cash flow increased significantly


Cargotec’s financial statements review 2019: Cash flow increased significantly

  • Kalmar’s orders received decreased, but order book and operating profit increased
  • Hiab’s orders received and operating profit increased
  • MacGregor was loss making, TTS Group acquisition completed

The figures in this financial statements review are based on Cargotec Corporation’s audited 2019 financial statements.

October–December 2019 in brief: Order book strengthened

  • Orders received decreased by 3 percent and totalled EUR 962 (991) million. 
  • Order book amounted to EUR 2,089 (31 Dec 2018: 1,995) million at the end of the period.
  • Sales increased by 12 percent and totalled EUR 1,015 (910) million.
  • Service sales increased by 11 percent and totalled EUR 285 (257) million.
  • Service and software sales represented 33 (33) percent of consolidated sales.
  • Operating profit was EUR 18.0 (60.9) million, representing 1.8 (6.7) percent of sales. Operating profit includes EUR 53.5 (12.5) million in restructuring costs.
  • Comparable operating profit increased by 7 percent and amounted to EUR 74.3 (69.6) million, representing 7.3 (7.7) percent of sales. 
  • Cash flow from operations before financial items and taxes totalled EUR 208.0 (86.0) million.
  • Net income for the period amounted to EUR -0.3 (34.1) million.
  • Earnings per share was EUR -0.00 (0.53).

January–December 2019 in brief: Service sales increased

  • Orders received totalled EUR 3,714 (3,756) million.
  • Sales increased by 11 percent and totalled EUR 3,683 (3,304) million.
  • Service sales increased by 8 percent and totalled EUR 1,062 (980) million.
  • Service and software sales represented 33 (34) percent of consolidated sales.
  • Operating profit was EUR 180.0 (190.0) million, representing 4.9 (5.8) percent of sales. 
  • Comparable operating profit increased by 9 percent and amounted to EUR 264.4 (242.1) million, representing 7.2 (7.3) percent of sales. 
  • Cash flow from operations before financial items and taxes totalled EUR 361.1 (125.8) million.
  • Net income for the financial year amounted to EUR 89.4 (108.0) million.
  • Earnings per share was EUR 1.39 (1.66). Net income and earnings per share decreased due to significant restructuring costs especially in MacGregor, as well as higher than average tax expense due to MacGregor’s negative business result as recognition criteria for deferred tax assets was not fulfilled mainly in Germany and Norway.
  • The Board of Directors proposes to the Annual General Meeting convening on 17 March 2020 a dividend of EUR 1.19 per class A share and EUR 1.20 per outstanding class B share be paid. The Board also proposes that the dividend shall be paid in two instalments, in March and October 2020. The dividend for class A shares would be paid in EUR 0.60 and EUR 0.59 instalments. The dividend for outstanding class B shares would be paid in two EUR 0.60 instalments.

Outlook for 2020

Cargotec expects its comparable operating profit for 2020 to improve from 2019 (EUR 264 million).

Cargotec’s key figures

Cargotec applies the accounting standard IFRS 16, Leases, and the interpretation IFRIC 23, Uncertainty over Income Tax Treatments, starting from 1 January 2019. More information on the standards is available in Note 2, Accounting principles and new accounting standards. Cargotec has also refined the definition of service business for Hiab and MacGregor from the beginning of 2019. The figures related to service business have been restated for the comparison period 2018 accordingly. Cargotec has published a stock exchange release on 4 April 2019 regarding the changes.


Orders received962991-3%3,7143,756-1%
Service orders received2772654%1,0791,0315%
Order book, end of period2,0891,9955%2,0891,9955%
Service sales28525711%1,0629808%
Software sales*4647-1%16814715%
Service and software sales,
% of Cargotec’s sales
33%33% 33%34% 
Operating profit18.060.9-70%180.0190.0-5%
Operating profit, %1.8%6.7% 4.9%5.8% 
Comparable operating profit74.369.67%264.4242.19%
Comparable operating profit, %7.3%7.7% 7.2%7.3% 
Income before taxes8.252.2-84%145.9161.1-9%
Cash flow from operations before financing items and taxes208.086.0> 100%361.1125.8> 100%
Net income for the period-0.334.1<- 100%89.4108.0-17%
Earnings per share, EUR-0.000.53<- 100%1.391.66-16%
Interest-bearing net debt, end of period77462524%77462524%
Gearing, %54.2%43.8% 54.2%43.8% 
Interest-bearing net debt / EBITDA**2.52.3 2.52.3 
Return on capital employed
(ROCE), last 12 months, %***
7.3%8.4% 7.3%8.4% 
Personnel, end of period12,58711,9875%12,58711,9875%

*Software sales include the strategic business unit Navis and automation software
**Last 12 months’ EBITDA
***Cargotec has refined the treatment of the interest rate component of currency forward contracts in the calculation of return on capital employed. As a result, the return on capital employed increased by 0.4 percentage points in 2018.

Cargotec’s CEO Mika Vehviläinen: Record high operating profits in Kalmar and Hiab

Similar to the previous year, the year 2019 was twofold in Cargotec. Kalmar and Hiab achieved record high operating profits while MacGregor was loss making. Our comparable operating profit increased by 9 percent, but mainly due to restructuring costs in MacGregor, the group’s operating profit decreased by 5 percent.

Our order book at the end of 2019 was higher than in the previous year. Kalmar’s order book was positively affected by increased demand of port automation solutions. Customers are now taking concrete steps towards automation investments and consider how and when they could automate their sites. Demand of mobile equipment trended downwards at the end of the year. Nevertheless, Kalmar managed to improve its comparable operating profit by 13 percent. 

Hiab’s result was particularly good. The business area’s order intake increased by 4 percent and comparable operating profit by 27 percent compared to the previous year. The result improved due to higher sales. We managed to solve the supply chain related challenges that started in 2018. This was also visible in Hiab’s order backlog that returned to a normalised level.

MacGregor’s situation remained challenging. Order intake excluding TTS acquisition remained at the previous year’s level. The business area’s sales and comparable operating profit decreased further in the subdued market environment. During the year, we conducted significant restructuring actions in MacGregor and we expect the results to be visible in our result this year. In 2019, we also completed the acquisition of the marine and offshore businesses of TTS Group ASA. The integration has started well and the scale benefits of the acquisition and synergies thereof create an opportunity to further improve MacGregor’s productivity and global presence.

I am pleased with the continued positive development in our service and software business. Service sales increased by 8 percent and software sales by 15 percent year-on-year. We are well on track towards reaching our targets.

We also managed to improve our cash flow significantly compared to the previous two years. Due to our strong cash flow, the Board of Directors proposes a sixth consecutive dividend increase. As in 2019, the proposed dividend of EUR 1.20 per class B share would be paid in two installments.

Due to market uncertainties, our visibility to 2020 is limited, but I think that we have a solid foundation. Our order book is strong and, thanks to TTS integration and other ongoing restructuring actions, MacGregor’s result is expected to improve. We expect service business’ growth and the group-wide savings and efficiency programmes to support our result development. We will continue our efforts to develop our corporate structure and improve our cost efficiency that may result in restructurings in 2020. 

I want to thank our shareholders and customers for their confidence and trust in our operations, and our employees for their hard work and dedication.

Reporting segments’ key figures

Orders received

Internal orders00 -1-1 

Order book

MEUR31 Dec 201931 Dec 2018Change
Internal orders0-1 


Internal sales0-1 -1-2 

Operating profit

MacGregor-59.9-7.3< -100%-83.3-4.2< -100%
Corporate administration and support functions-11.5-13.213%-50.4-77.735%

Comparable operating profit

MacGregor-12.5-6.8-84%-28.2-1.6< -100%
Corporate administration and support functions-9.0-9.44%-39.5-34.4-15%



Press conference for analysts, investors and media

A press conference for analysts, investors and media, combined with a live international telephone conference, will be arranged on the publishing day at 10.00 a.m. EET 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 Mikko Puolakka. The presentation material will be available at by latest 9.30 a.m. EET.

The telephone conference, during which questions may be presented, can be accessed by registering at The registration opens 15 minutes prior to the event. The event conferencing system will call the participant on the phone number provided and place the participant into the event.

The telephone conference can also be accessed without advance registration with code 428796 by calling to one of the following numbers:

FI +358 (0) 9 7479 0360

SE +46 (0) 8 5033 6573

UK +44 (0) 330 336 9104

US +1 323-794-2095

The event can also be viewed as a live webcast at Conference call will be recorded, and an on-demand version of the conference will be published at Cargotec's website later during the day.

Note that by dialling in to the conference call, the participant agrees that personal information such as name and company name will be collected.

For further information, please contact:
Mikko Puolakka, Executive Vice President and CFO, tel. +358 20 777 4105
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084

Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec's sales in 2019 totalled approximately EUR 3.7 billion and it employs around 12,500 people.