IR Blog: Frequently asked questions about Cargotec's Q1/2021
How did your service orders develop in Q1? How is the supply chain developing? Here you can find answers to some of the most topical questions regarding our Q1/2021 interim report.
What is your guidance for 2021?
Cargotec reiterates its outlook published on 4 February 2021 and expects its comparable operating profit for 2021 to improve from 2020 (EUR 227 million)
What are your expectations for Q2?
We expect solid demand to continue, however, strong orders received in Q1 could have been affected by pent-up demand from the previous year as well as concerns about the future capacity availability.
We enter to the second quarter with a strong order book in our most profitable segments that will support our sales and comparable operating profit, however there are uncertainties related to availability of components and shipping capacity.
Q1 situation in general?
Market environment developed favourably during the first quarter; however, there can be pent-up demand from the previous year as well as concerns about the future capacity availability.
The availability of product components did not have a material impact on our operations but, if prolonged, the global shortage of components could pose challenges. We monitor closely our supply chain performance and are actively cooperating with our suppliers.
Our equipment sales were burdened by low order intake in Q2 and in early Q3 while our service sales remained resilient and constituted together with software 40% of our consolidated sales.
Comparable operating profit increased due to lower costs, partly offset by lower sales.
Operative cash flow before interests and taxes increased due to lower net working capital.
How did your service orders develop in Q1?
Service orders received increased by 11 percent year on year. Demand for services improved in all business areas, especially in MacGregor which had been suffering from Covid-19 related decrease in dry dockings.
How did Kalmar Q1 orders received develop?
Kalmar’s Q1 orders received increased by 58 percent to 529 (334) MEUR, driven by strong demand in mobile equipment. Also automation and project orders improved clearly.
Kalmar Q1 comparable operating profit declined?
Kalmar’s comparable operating profit decreased by 28 percent to EUR 20 (28) million due to decline in sales stemming from lower orders in Q2-Q3/20
What is the status of Navis sales process?
On 25 March, we announced the sale of Navis for enterprise value of MEUR 380 = ~3.6 x sales. Closing is expected by the end of Q3/21.
Hiab’s Q1 orders received increased by 44 percent y-o-y, why?
Strong underlying market drivers, potentially pent up demand from 2020, concerns about the future solution availability. Orders received increased by 44 percent to EUR 425 (296) million. Growth across all Hiab’s product categories.
Why did Hiab’s comparable operating profit increase by 26 percent y-o-y in Q1?
Hiab’s comparable operating profit increased by 26 percent to EUR 39 (31) million due to lower fixed costs
Why did MacGregor’s comparable operating profit increase?
MacGregor’s comparable operating profit increased to EUR 3 (-2) million driven by lower costs and good project execution.
How is the supply chain developing?
The availability of product components did not have a material impact on our operations in Q1/21 but, if prolonged, the global shortage of components could pose challenges. Consequently we monitor closely our supply chain performance and are actively cooperating with our suppliers. Our own operations are not expected to cause issues.
What is the status of the Cargotec-Konecranes merger?
On 1 October 2020, we announced the plan to combine Cargotec and Konecranes through a merger. Extraordinary meetings held on 18 December 2020 by each of the companies resolved the resolution to approve the merger. The implementation of the merger is subject to obtaining the necessary approvals from the competition authorities. More information about the merger is available from the web address www.sustainablematerialflow.com.