IR Blog: Frequently asked questions about Cargotec's Q3/2021
What were the drivers behind the development? How did the service business develop? Here you can find answers to some of the most topical questions regarding our Q3/2021 interim report.
Why did Cargotec’s orders received increase by 33% to EUR 985 million?
Orders increased in all product categories and geographies
Strong macroeconomic development
Why did Cargotec’s comparable operating profit improve by 4% to EUR 65 million?
Comparable operating profit increased due to higher comparable operating profit in Hiab.
How did the market environment develop?
The market recovery from the pandemic as well as the increase in economic activity that started at the end of 2020 supported the demand for our solutions in the third quarter. Our main demand drivers - number of containers handled at ports globally, construction activity, new vessel contracting - continued to grow strongly.
How much did component shortage and delivery bottlenecks impact your sales?
The impact was approximately EUR 50 million in sales in Q3. Biggest impact we saw in Kalmar mobile equipment followed by Hiab. We expect the component and logistics challenges to remain largely the same also during the last quarter of the year, which on the other hand is a seasonally stronger quarter than Q3.
Why did your personnel count decrease from Q2?
The decrease was driven by Navis disposal, which affected Kalmar’s headcount
Will the sale of Navis impact your Comparable operating profit and guidance?
Sales gain is reported as an item affecting comparability, thus having no impact on either comparable operating profit nor the 2021 outlook. The item affecting comparability, booked in Q3, was approximately EUR 230 million.
How did your service business develop?
Good progress in service business continued and service orders received increased by 18 % to EUR 271 million. Service sales increased by 9 % to EUR 264 million and together with software sales constituted 34 of Cargotec’s total sales. High utilization of connected machines support good demand for services.
How did Kalmar Q3 orders received develop?
Kalmar’s Q3 orders received increased by 28% to 421 MEUR. Orders received improved in all product categories.
Kalmar's Q3 comparable operating profit decreased, why?
Kalmar’s comparable operating profit decreased due to additional costs stemming from supply chain challenges, increased freight and component costs, and accelerated R&D investments.
Hiab’s Q3 orders received increased by 45% y-o-y, why?
Strong underlying market drivers. Construction and logistics industries are doing well despite the pandemic. Orders received increased across all product categories and geographies.
Why did Hiab’s comparable EBIT increase by 10 MEUR y-o-y in Q3?
Hiab’s comparable operating profit increased due to 21% higher sales.
Why did MacGregor’s comparable operating profit decrease?
The comparable operating profit decreased due to lower sales. However, the service business's share of sales increased which, together with cost savings actions, diminished the negative impact of lower sales. We believe that Q3 was bottom in MacGregor’s sales and we expect revenues to grow going forward.
Why did gearing improve to 31 percent?
Gearing improved driven by sales gain from Navis disposal.
How did the sales of your eco portfolio develop?
Share of the eco portfolio sales decreased by 22% in Q3/21 from Q3/20. Its share of Cargotec’s total sales was 17 (23) percent. The decrease was driven by Navis disposal.
However, we see increasing interest towards our fully electric equipment. For example in Q3, 27% of our forklift orders were in fully electric versions.
What is your guidance for 2021?
Cargotec estimates 2021 comparable operating profit to increase compared to 2020 (EUR 227 million).