IR Blog: Frequently asked questions about Cargotec's Q3/2022 result

What is your outlook for 2022?
Cargotec estimates its 2022 comparable operating profit to improve EUR 88–118 million compared to 2021 (from EUR 232 million to EUR 320–350 million).

Why did Cargotec’s comparable operating profit increase by 43 percent to EUR 93 million in Q3?
The comparable operating profit increase was driven by higher sales in Hiab and in Kalmar.

What would have been the result of Cargotec’s core businesses in Q3/22?
The comparable operating profit of our core businesses Hiab and Kalmar (excluding heavy cranes) would have been 10.6 percent in Q3.

Why did your R&D spending decrease in 1-9/2022?
The year’s first nine months’ R&D expenses decreased from the comparison period and totalled 71 million euros or 2.5% of total sales due to divestment of Navis business.

Compared to three first quarters in 2021, our total R&D spend in core businesses Hiab and Kalmar was roughly 5 MEUR higher.

How much was the effect of currencies in your result?
Our reported orders received, sales and comparable operating profit were 5-6% higher than those in constant currencies.

How did Kalmar Q3 orders received develop?
Kalmar’s Q3 orders received increased by 12 percent to 470 MEUR.

• Robust mobile equipment demand continued
• Number of units ordered stabilised
• Discontinued heavy cranes orders were in total approximately EUR 25 million in the comparison period

Kalmar’s Q3 comparable operating profit increased by 69 percent to 51 MEUR (30), why?
The comparable operating profit increased due to higher sales.

Hiab’s Q3 orders received increased by 7 percent to MEUR 425, why?
Robust demand continued and Hiab is a growth business. Hiab’s sales grew by 7 percent CAGR between 2013-2019.

Why did Hiab’s comparable operating profit increase by 20 percent to 50 MEUR in Q3?
Hiab’s comparable operating profit increased due to higher sales.

Why did MacGregor’s orders received increase by 50 percent to 252 MEUR?
The increase in merchant vessels affected orders received positively, and orders received reflect last year’s high new vessel contracting.

Why did MacGregor’s comparable operating profit increase by 7 percent to 3 MEUR?
Higher sales in services and merchant vessels supported the comparable operating profit, but lower sales in offshore as well as investments in the offshore wind burdened the comparable operating profit.

Why did your eco portfolio sales increase by 97 percent?
The eco portfolio sales almost doubled from the comparison period to 276 MEUR. The increase was driven by higher sales of Hiab’s and Kalmar’s eco portfolio products.

How have you progressed with the refocused strategy? What are the concrete steps you have taken?
We have started all the actions related to the announced refocused strategy. In terms of Kalmar’s exit from the heavy cranes business, Kalmar has transferred heavy cranes related intellectual properties and assets to Rainbow Industries Co. Ltd. in China. The process is at its final stages with the transfer of the last assets presently ongoing.

We have also evaluated our operating model and, based on the evaluation, we will increase the independence of our business areas even further. As an example, tasks related to sourcing and information management are planned to be transferred from the group level to businesses.

Regarding the evaluation of strategic options of MacGregor, the work is still ongoing. The evaluation also includes a potential sale of the business.