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IR Blog: Frequently asked questions about Cargotec's 2020 result


Cargotec's 2020 results highlights included, among others, a positive trend in orders received, sales and comparable operating profit which continued in the last quarter. But what were the hottest topics raised to our IR team? Here you can find the most frequently asked questions about our financial statements and answers to them.

What is your guidance for 2021?
Cargotec estimates 2021 comparable operating profit to increase compared to 2020 (EUR 228 million*).

*Cargotec changed the definition of the alternative performance measure comparable operating profit starting from 1 January 2021 to align it with the definition used in the merger prospectus. Restated comparable operating profit will exclude, in addition to the items significantly affecting comparability, also the impacts from purchase price allocation which amounted to EUR 24 million. Comparison figure has been calculated based on the new definition. Restatement for 2020 figures will be published before Q1/21 result announcement.

What are your expectations for Q1?
Typical seasonality pattern there, Q1 has been typically one of the lowest quarters. We expect the unfavourable mix to prevail in Kalmar in Q1. It is good to remember that both Kalmar Mobile Equipment and Hiab received few larger one-time orders in Q4/20. MacGregor is expected to improve YoY.

Q4 situation in general?
When the Q4 started, the visibility was still limited but we saw that the operating environment was recovering as indicated in our outlook. We did not experience any significant supply chain challenges during the period. Q4 deliveries progressed as planned, as well as productivity improvements.

How did Kalmar Q4 orders received develop?
Kalmar’s Q4 orders received remained at the comparison period’s level at 445 MEUR. Kalmar received a sizable mobile equipment order in Q4. Service orders received remained at the comparison period’s level. Customers are still interested in automation solutions as such, but the larger automation orders have been postponed due to the prevailing covid-19 situation and an uncertain market environment.

Kalmar Q4 comparable operating profit declined by 36%, why?
Kalmar’s comparable operating profit decreased due to decline in sales and increased share of project business in sales, partly offset by productivity improvements and cost savings.

Why did Hiab’s comparable EBIT decrease by 21% y-o-y in Q4?
Hiab’s comparable operating profit decreased due to the decline in sales. However, Hiab’s comparable operating margin remained close to the comparison period level due to productivity improvements and cost savings as well as higher sales margins.

Why did MacGregor’s comparable operating profit increase?
MacGregor’s comparable operating profit increased driven by cost savings achieved by restructurings and sales margins.

What was included in items affecting comparability?
The operating profit includes items affecting comparability worth EUR -47 (-56) million. EUR -9 (-3) million of the items were related to Kalmar, EUR -16 (-3) million to Hiab, EUR -16 (-47) million to MacGregor and EUR -6 (-3) million to corporate administration and support functions.

What is your dividend proposal?
The Board of Directors proposes to the Annual General Meeting convening on 23 March 2021 that a 1.07 euro dividend would be paid for each class A share and 1.08 euro dividend for each outstanding class B share. The proposed dividend payment date is 1 April 2021.

How did the sales of your eco portfolio develop?
Share of the eco portfolio sales increased during 2020. Its share of Cargotec’s total sales was 24 percent (2019: 21).

What is the status of the Cargotec-Konecranes merger?
In October, we announced the plan to combine Cargotec and Konecranes through a merger. In December, the extraordinary general meetings of both companies resolved to approve the merger, which was the unanimous recommendation of the Boards of Directors of both companies. The work to finalise the merger continues in 2021. Completion is expected in January 2022, provided that all conditions for completion are being fulfilled. More information can be found from the merger site

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