IR Blog: Frequently asked questions about Cargotec's Q2/2022 result
20/07/2022
How did your comparable operating profit develop? Do the supply chain challenges continue? How have you progressed with your refocused strategy? Here are answers to some of the most topical questions regarding Cargotec’s half-year January–June 2022 report.
What is your outlook for 2022?
Cargotec expects its comparable operating profit for 2022 to improve from 2021 (EUR 232 million)
Why did Cargotec’s comparable operating profit increase by 23% to EUR 86 million in Q2?
The comparable operating profit increase was driven by higher sales in Hiab and in Kalmar mobile equipment as well as effective commercial and supply chain execution.
How do you see the supply chain situation at the moment?
The supply chain challenges are expected to continue also during the second half of the year.
How did Kalmar Q2 orders received develop?
Kalmar’s orders received decreased by 5 percent from the comparison period and totalled EUR 567 million in the second quarter.
- Robust mobile equipment demand continued
- The decrease was mainly due to the limited acceptance of terminal tractor orders due to long delivery times
- Large shuttle & straddle carrier orders received in in Q2/22
- In July 2021 divested Navis and discontinued heavy cranes orders were in total around EUR 50 million in the comparison period
Kalmar’s Q2 comparable operating profit increased by 24% to EUR 41 million, why?
The comparable operating profit increase was driven by higher mobile equipment sales and stable project execution.
Hiab’s Q2 orders received increased by 3% y-o-y to EUR 523 million, why?
The strong demand for Hiab’s solutions and services has continued. Order-wise this was the highest quarter in Hiab’s history. Hiab’s sales have grown by 7% CAGR between 2013–2019.
Hiab’s comparable operating profit increased by 39% to EUR 63 million in the second quarter, why?
Hiab’s comparable operating profit increased due to higher sales and effective commercial and supply chain execution.
Why did MacGregor’s orders received increase by 78% to 301 MEUR?
The orders reflect last year’s high new vessel contracting.
Why did MacGregor’s comparable operating profit decrease to EUR -7 million?
MacGregor’s comparable operating profit decreased due to lower sales in the offshore business, investments in offshore wind, cost overruns in single pioneering offshore wind projects involving new technologies, and delays in spare part deliveries.
How do you see MacGregor’s business these days?
As part of our refocused strategy, we have initiated the evaluation of strategic options of MacGregor including a potential sale of the business.
MacGregor’s projects involving wind power related new technologies have been challenging and caused additional costs, although, as such, offshore wind power constitutes a very attractive business opportunity. Despite low sales, MacGregor's business in the merchant ship segment and service business has been profitable. Excluding the offshore wind business, MacGregor's comparable operating profit margin last year and in the first half of this year would have been clearly positive (Q1–Q2/22: 2.1%).
Why did your eco portfolio sales increase by 25% to EUR 217 million?
The increase was driven by higher sales of Hiab’s and Kalmar’s eco portfolio products, diminished by the divestment of Navis software business. Excluding the divested Navis business the growth would have been +45%.
How did the service business perform?
Growth continued in the service business. Service sales grew in all businesses and by 13% in total and new record sales for a quarter, 303 MEUR, was reached. Service orders received increased by 9%.
How have you progressed with the refocused strategy? What concrete steps have you taken?
We have progressed determinedly with the strategy, taking the first important steps on it. In May, we announced plans to combine the strategic business units Kalmar Mobile Solutions and Kalmar Automation Solutions. After the reporting period in July, we announced that Kalmar and Rainbow Industries Co. Ltd. (RIC) have entered into an agreement whereby Kalmar would transfer heavy cranes’ related intellectual properties and assets to RIC in China. We also initiated the evaluation of strategic options of MacGregor including a potential sale of the business, and continued to focus on R&D during the second quarter. Our R&D investments increased by over 10 percent compared to the comparison period if the divested Navis business is excluded.