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IR Blog: Frequently asked questions about Cargotec's Q1/2023 result


Why did your comparable operating profit increase by 85 prosenttia compared to previous year? How idid the order intake develop? Here are answers to some of the most topical questions regarding Cargotec’s interim report January–March 2023.

Cargotec’s orders decreased by 7% to EUR 1,059 million in Q1. What were the drivers?
In Kalmar, demand was steady, although we saw some delays in purchase decisions in larger projects. Demand for services and eco portfolio solutions remained strong.

In Hiab, underlying demand drivers remained at a good level, orders received declined from the comparison period, which was partly due to large orders received in the first quarter of 2022.

In MacGregor, strong container vessel and car carrier markets drove demand.

How large is Cargotec’s order book?
We have a solid order book of 3,467 MEUR covering almost the entire 2023 equipment sales.

Why did Cargotec’s sales improve by 26 percent to EUR 1,047 million in Q1?
Sales growth was stemming from our solid order book. Efficiency of our supply chain management improved and our operational execution was excellent.

Why did Cargotec’s comparable operating profit increase by 85% to EUR 112 (61) million in Q1?
The comparable operating profit increase was driven by higher sales in Kalmar and Hiab.

Kalmar’s Q1 comparable operating profit increased by over 100 % to 63 MEUR (28), why?
The comparable operating profit increased due to higher sales, good management of inflationary pressures, as well as smaller losses related to heavy cranes business, which is discontinued.

Why did Hiab’s comparable EBIT increase by 29% to 61 (47) MEUR y-o-y in Q1/23?
Hiab’s comparable operating profit increased due to higher sales and good management of inflationary pressures and costs.

Why did MacGregor’s comparable operating profit increase to 1 MEUR? (-3) in Q1/23?
Comparable operating profit increased due to higher service sales.

What would have been the result of the core businesses in Q1/23?
Core businesses’ comparable operating profit % was 12.4 in Q1/23. We publish core businesses’ key figures in a table in our quarterly reports to make it easier for investors to track our progress towards our financial targets.

How much did you book items affecting comparability in Q1 and what was Cargotec’s operating profit in Q1?
Operating profit for the first quarter totalled EUR 104 million. The operating profit includes items affecting comparability worth EUR -8 million which were almost all booked in MacGregor.

How did Cargotec’s service business develop in Q1?
Service orders received increased by 18 percent and totalled EUR 362 million. Services sales increased by 22 percent from the comparison period and totalled EUR 346 million, representing 32 percent of consolidated sales.

How did Cargotec’s eco portfolio develop in Q1?
Eco portfolio sales increased by 21 percent and totalled EUR 346 million, representing 32 percent of consolidated sales. Eco portfolio sales increased in both climate change mitigation and transition to circular economy categories and in all business areas.

How was the supply chain situation in Q1?
Tightness and volatility of the component availability persisted.

How much was the effect of currencies and M&A in your orders, sales and comparable operating profit?
The impact was not material in Q1. The impact of structural changes and changes in fx rates on orders and sales are reported in our interim report.

How does the operation environment look like?
In the beginning of 2023, the market environment was characterised by elevated uncertainty stemming from high interest rates and inflation, instability of the financial markets, fear of recession, continued supply chain bottlenecks, geopolitical tensions, and sluggish growth estimates. However, many of our customers and partners are performing well and we have experienced steady demand.

What was your operative cash flow in Q1/2023?
Q1/23 operative cash flow was 26 MEUR. Bottlenecks in the supply chain and a typical seasonal build up of net working capital, especially inventories, weakened cash flow.

What is your estimate for restructuring costs in 2023?
Restructuring costs in the first quarter amounted to EUR 4 (13) million. The restructuring costs were related to MacGregor. For the year 2023, the restructuring costs of ongoing restructuring programmes are estimated to be approximately EUR 20 million. The estimate does not include all costs related to Cargotec’s refocused strategy, and the restructuring cost estimate may be subject to change.

How did your gross profit margin develop in Q1/23?
Cargotec’s gross profit margin improved to 23.8% in Q1/23 from 22.3% in Q1/22.

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