Cargotec in figures Financials

The objective of Cargotec treasury management is to secure sufficient funding for business operations, avoiding financial constraint at all times, to provide business units with financial services, to minimise the costs of financing, to manage financial risks (currency, interest rate, liquidity and funding, credit and operational risks) and to provide management with information on the financial position and risk exposures of Cargotec and its business units.

Key figures

In 2019 Cargotec adopted IFRS 16, which impacts net debt and gearing. Q3 2019 figures excluding on-balance sheet lease liabilities: net debt MEUR 744, gearing 52%.

Net debt 30 September 2019

2017 figures have been restated according to IFRS 15. Figures are updated quarterly.

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Consensus estimates

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Alternative performance measures (APMs) used in Cargotec's financial reporting

Cargotec uses and presents APMs to better convey the underlying business performance and to enhance comparability from period to period. APMs are reported as complementary information.

The alternative performance measures used by Cargotec are:

• Operating profit excluding restructuring costs (MEUR and % of shares) = Operating profit + restructuring costs
• ​Interest-bearing net debt (MEUR) = Interest-bearing liabilities – loans receivable and other interest-bearing assets +/- foreign currency hedge of corporate bonds
• Net interest-bearing debt / EBITDA, rolling 12 months = Net interest bearing debt / EBITDA (earning before interests, taxes, depreciation and amortisation, rolling 12 months)
• Operative capital employed = Net working capital + goodwill + other intangible assets + property, plant and equipment + investments in associated companies and joint ventures + share investments

Restructuring costs include restructuring provisions, asset impairments and disposals, expenses for vacant premises and other restructuring-related expenses in case of a significant restructuring programme of Cargotec or its business area.

New alternative performance measure – Comparable operating profit

Starting from 1 January 2019, Cargotec replaces the alternative performance measure of "operating profit excluding restructuring costs" with "comparable operating profit" for measuring business performance in the financial reporting. Comparable operating profit does not contain items significantly affecting comparability. In addition to restructuring costs, these items mainly include capital gains and losses, income and expenses related to business acquisitions and disposals, impairments of assets and reversals of impairments, insurance benefits, and expenses related to legal proceedings. Cargotec's comparable operating profit for 2018 is EUR 242.1 (2017: 258.6) million.

Cargotec's stock exchange release on 28 March 2018:

Cargotec applies the new IFRS 15 and IFRS 9 accounting standards as well as the amendments to the IFRS 2 standard starting from 1 January 2018. Cargotec discloses the financial impacts of the transitional adjustments related to the adoption of IFRS 15 and IFRS 9 and the amended IFRS 2, as well as the restated figures for 2017 due to the retrospective adoption of IFRS 15. Cargotec has also aligned the definitions of the equipment, service and software businesses from the beginning of 2018 and discloses the restated comparison period figures of 2017 for the reporting segments.

The adoption of IFRS 15 decreased sales in 2017 by EUR 30.3 million, of which Kalmar’s share was EUR 25.2 million, Hiab’s EUR 0.1 million and MacGregor’s EUR 5.0 million. The 2017 operating profit, excluding restructuring costs, decreased by EUR 4.6 million, of which Kalmar’s share was EUR 3.6 million, Hiab’s EUR 0.1 million and MacGregor’s EUR 1.0 million.

Cargotec confirms the 2018 outlook published on 8 February 2018: Cargotec’s operating profit excluding restructuring costs for 2018 is expected to improve from 2017 (EUR 258.6 million, IFRS 15 restated). The previous 2017 comparison figure for operating profit excluding restructuring costs was EUR 263.2 million.

The adoption of the new accounting principles resulted in an increase of EUR 3.5 million in Cargotec’s equity in the opening balance 2018, including the following adjustments:

• IFRS 15, Revenue from contracts with customers, was adopted retrospectively with the allowed transitional reliefs. The adoption of IFRS 15 resulted in changes in the timing of revenue recognition related to certain products. The retrospective adoption of these changes resulted in an increase of EUR 1.3 million in Cargotec’s equity in the opening balance of 2017, and a reduction of EUR 3.7 million in the net income for the year 2017.
• IFRS 9, Financial instruments, was adopted prospectively with the allowed transitional reliefs. The adoption of IFRS 9 resulted in an increase in the credit loss provision regarding the less than 90 days overdue receivables related to which Cargotec previously recognized no generic credit loss provision. In addition, certain loan receivables were impaired on the adoption of IFRS 9. These transitional adjustments resulted in a reduction of EUR 1.6 million in Cargotec’s equity in the opening balance of 2018.
• Amendments to IFRS 2 regarding the classification and measurement of share-based payment transactions were adopted prospectively. As a result of the amendments, the share-based payments that are settled net in shares after withholding taxes are accounted for in full as equity-settled arrangements despite the fact that Cargotec pays in cash the taxes related to the rewards on behalf of the participants. The adoption of IFRS 2 amendments resulted in an increase of EUR 7.5 million in Cargotec’s equity in the opening balance of 2018.

Additional information regarding the transitional adjustments is disclosed in Cargotec’s Financial review 2017 under the section Accounting principles for the consolidated financial statements.

Due to the aligned definitions of the equipment, service and software businesses, EUR 32.8 million was restated from equipment sales into service sales in 2017, of which Hiab’s share was EUR 16.2 million and MacGregor’s EUR 16.6 million.

The first interim report of 2018 to be published on 24 April will be prepared in accordance with the new accounting principles.

The restated financial information is unaudited.

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As of 1 January 2013, Cargotec's external financial reporting comprises of three reporting segments: MacGregor (Marine until 31 Dec 2012), Kalmar (Terminals unti 31 Dec 2012) and Hiab (Load Handling until 31 Dec 2012).

In addition, the Bulk Handling business was transfered from MacGregor business area to Kalmar business area as of 1 January 2013. Segment information for 2011 - 2012 has been restated accordingly.

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In October 2011, Cargotec announced plans to accelerate the implementation of its strategic initiatives by changing its operational model. Effective from 1 January 2012, Industrial & Terminal was divided into two new business areas: Terminals and Load Handling. Cargotec's Supply organisation was divided into the new business areas. Business areas Marina and Services will continue unchanged.

Cargotec's external financial reporting segments are Marine, Terminals and Load Handling. These changes were effective from 1 January 2012. Comparative figures will be provided before reporting the figures for Q1/2012.

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In June 2009, Cargotec announced the merger of Hiab and Kalmar business areas. As a result, two business areas were formed: Industrial & Terminal, comprising former Hiab and Kalmar business areas, and Marine, which comprises former MacGregor business area.

Cargotec will as of 1 January 2010 report financial information in two reporting segments: Industria & Terminal and Marine. On these reporting segments, Cargotec will disclose quarterly figures for orders received, order book, sales, operating profit and number of employees. In financial reporting the third business area, Services, will be included in the figures of these two reporting segments while its sales will continue to be reported as additional information.

In addition to segment reporting, Cargotec will continue to disclose quarterly sales and number of employees by geographical areas, which are EMEA (Europe, Middle East and Africa), Americas and Asia-Pacific.

The first interim report of 2010 to be published on 29 April 2010 will be prepared according to the new reporting segment structure. Cargotec's 2007-2009 financial information has been restated to comply with the new reporting segment structure. The restated comparison figures are available through the attached link.

Cargotec was listed on the NASDAQ OM Helsinki on 1 June 2005 and the company's first official financial period was 1 June - 31 December 2005. Unaudited pro forma comparison figures are presented for those periods for which official comparative figures are not available. 

Pro forma figures present Cargotec's financial information based on its business and corporate structure at the time of the listing to facilitate the financial evaluation of the company. Hence, MacGregor's marine cargo flow business acquired in spring 2005 is included in the pro forma figures of all comparison periods as if the acquisition would have happened before the periods presented. Pro forma information is based on IFRS and the accounting principles of Cargotec's official consolidated financial statements have been applied when suitable. The final accounting impact of the MacGregor acquisition according to IFRS 3 is included in the official result as of June 1, 2005. In pro forma figures the impact has been recognised as an adjustment to equity. The pro forma accounting principles prior to the listing are presented in Cargotec's listing particulars.