IR Blog: Frequently asked questions about Cargotec's Q2/2021
What were the drivers behind orders received increasing to record level? How did the service business develop? Here you can find answers to some of the most topical questions regarding our Q2/2021 half year report.
Cargotec’s orders increased by 101% to EUR 1,276 million, what were the drivers?
- Record order intake in Kalmar Mobile Equipment and in Hiab
- Year-on-year improvement in Kalmar Automation & Projects, MacGregor and services
- Strong macroeconomic development
- We estimate that the extended delivery times and our announced price increases have led our customers to order our solutions in a front-loaded manner
Why did Cargotec’s comparable operating profit improve by 41% to EUR 70 million?
Comparable operating profit increased especially due to higher comparable operating profit in Hiab. Also MacGregor’s profitability improved.
Why did the cash flow increase in Q2/2021 compared to the comparison period?
Q2/21 cash flow was 13 MEUR, which was 10 MEUR higher than Q2/20. Better profitability was the primary contributor for the better cash flow while we tied a bit more working capital in Q2/21 compared to Q2/20 due to higher volumes and supply chain constraints.
Q1-Q2/21 cash flow was 64 MEUR, which increased by 38 MEUR compared to Q1-Q2/20. Cash flow was supported by higher profitability.
How did your service business develop in Q2?
Service sales increased by 12% and service orders received by 27% year-on-year.
Demand for services improved in all business areas supported by the high utilization rates.
How did Kalmar Q2 orders received develop?
Kalmar’s Q2 orders received increased by 105% to 600 MEUR driven by strong demand in Terminal Tractors and in other mobile equipment. Also project and service orders improved clearly. The quarter didn’t include any sizable single orders. Potentially front-loaded buying due to longer lead times and ahead of price hikes.
Kalmar Q2 comparable operating profit remained stable at EUR 33 million, why?
Higher sales offset by Navis's lower second quarter result stemming from a decrease in its sales, additional costs stemming from supply chain challenges, increased freight and component costs, and accelerated R&D investments.
Hiab’s Q2 orders received increased by 127% y-o-y to EUR 508 million, why?
Strong underlying market drivers and front loaded buying due to longer lead times and ahead of price hikes. Orders received increased across all product categories and geographies.
Why did Hiab’s comparable EBIT increase by 20 MEUR y-o-y to EUR 45 million in Q2?
Hiab’s comparable operating profit increased due to 30% higher sales
Why did MacGregor’s comparable operating profit increase to EUR 3 million?
MacGregor’s comparable operating profit increased driven by increased service sales and implemented cost saving actions.
What is your guidance for 2021?
Cargotec estimates 2021 comparable operating profit to increase compared to 2020 (EUR 227 million).