Interim report January–September 2020Was published 22 October 2020
This section contains Cargotec's IR newsletters, mainly published quarterly before the three-week silent period. You can find the most recent letter below.
The third quarter of 2020 is soon ending, and we would like to remind you of some of the quarter's most important events. Cargotec’s January–September 2020 interim report will be published on Thursday, 22 October 2020, and the silent period will commence on Thursday, 1 October 2020. If you would like to book a call with us before our silent period, please contact Tiina (email@example.com).
Cargotec Corporation will disclose the following financial information in 2020:
|Date (and booking quarter)||Business area||Description||Country/ Customer||Value|
|14 September (Q3/2020)||MacGregor||two new orders, one for two RoPAX ferries and another for a group of linkspans||Asia (RoPAX), Scandinavia (linkspans)||EUR 13 million|
|3 September (Q3/2020)||Kalmar||Three Kalmar rubber-tyred gantry (RTG) cranes||Morocco/Marsa Maroc||Not disclosed|
|1 September (Q3/20)||Kalmar||20 Kalmar Hybrid Shuttle Carriers||USA/The Port of Virginia||Not disclosed|
|28 August (Q3/20)||Kalmar||Four SmartPower Rubber-Tyred Gantry (RTG) Cranes||Cambodia/Phnom Penh Autonomous Port (PPAP)||Not disclosed|
|27 August (Q3/20)||MacGregor||A significant order, the largest single vessel contract secured to date by MacGregor, for delivery of the mission-critical system to be installed on the OHT offshore wind foundation installation vessel, Alfa Lift||OHT||Not disclosed|
|13 August (Q3/20)||MacGregor||Two orders to provide full hardware supply including ramps and lifting platforms for two RoPax vessels and two material supply vessels||Japan||EUR 18 million|
|23 July (Q3/20)||Kalmar||Two Zero Emission rubber-tyred gantry cranes (RTGs) and Kalmar SmartPort solutions (part of Kalmar One automation system)||Turkey/Safi Derince International Port||Not disclosed|
On 1 October, we announced that Cargotec's and Konecranes's respective Boards of Directors have on that day signed a combination agreement and a merger plan to combine the two companies through a merger.
Also on 1 October, we announced that Cargotec has decided to continue to evaluate strategic alternatives for its Navis business to identify the best options to support future development of Navis.
On 15 September, we announced that our third quarter 2020 would be better than expected. We estimate that orders received and comparable operating profit are to increase compared to the second quarter 2020.
On 25 August, we announced that Cargotec's Board of Directors has decided on the second instalment of the dividend based on the authorisation granted to the Board by the Annual General Meeting. The second instalment of the dividend distribution is a dividend of EUR 0.60 for each of class A shares and a dividend of EUR 0.60 for each of class B shares outstanding. The second instalment payment date was 3 September 2020.
Cargotec has set ambitious science-based greenhouse gas emission reduction targets to address the impacts of both its own operations and the chain. In May, we announced our commitment to the United Nations Global Compact’s Business Ambition for 1.5°C to pursue science-based measures to limit global temperature rise to 1.5°C. In August, the targets were approved by the Science Based Targets initiative.
On 15 September, we held a virtual analyst call with 15 analysts participating over the web. In the call, Cargotec's CEO Mika Vehviläinen discussed Cargotec's 15 September announcement, business development and financial position, and answered the participants' questions, among others.
During the Q3, our investor meetings have been virtual meetings where we have convened online and shared material virtually. Even though we miss meeting you in person and having informal discussions on the road, according to your feedback and participation the virtual meetings have worked well, and we thank you for your support and cooperation.
While the coronavirus situation prevails, we continue with high safety standards, following the regulatory travel and social restrictions. Depending on the development of pandemia and safety requirements in Q4, we can also consider opportunities to host even face-to-face meetings in Helsinki, Finland.
Visit the IR calendar section on the Cargotec website for more information about upcoming and past events.
Cargotec maintains a list with all mergers and acquisitions as well as divestments on the investor webpage - take a look at it here.
Take a look at the latest Vara consensus estimates.
The most important events of the Q4 2018 can be found from the below newsletter.
Cargotec Corporation will disclose the following financial information in 2019:
|Date (and booking quarter)||Business area||Description||Country/ Customer||Value|
|17 January (Q4/18)||Kalmar||Complete AutoRTG system which will comprise eight automated rubber-tyred gantry cranes (AutoRTGs) controlled by the Kalmar Terminal Logistic System (TLS) and new-generation remote control (RC) desks||Belfast Container Terminal (BCT) in Northern Ireland||Not disclosed|
|15 January (Q4/18)||Kalmar||Four rubber-tyred gantry cranes (RTGs) with hybrid drivelines. The order includes the supply of a spare parts package for the machines||Exolgan container terminal, Buenos Aires||Not disclosed|
|9 January (Q4/18)||MacGregor||Deck machinery destined for heavy-duty naval operations||US Naval Sea Systems Command (NAVSEA) T-ATSX-class vessel||Not disclosed|
|3 January (Q4/18)||Kalmar||Four Kalmar SmartPower rubber-tyred gantry cranes (RTGs) equipped with a suite of process automation solutions||Norfolk Southern intermodal terminals in USA||Not disclosed|
|21 December (Q4/18)||MacGregor||Cruise access equipment orders||Three European shipyards||EUR 22 million|
|19 December (Q4/18)||Kalmar||Six Gloria reachstackers||Sitrans Servicios Integrados de Transportes Limitada (Sitrans), part of the Ultramar Group, Chile||Not disclosed|
|18 December (Q4/18)||MacGregor||Hatch cover orders for eight 1,800 TEU containerships||Hyundai Mipo Dockyard (HMD)||Not disclosed|
|17 December (Q4/18)||Kalmar||41 units of Kalmar TL2 Terminal Tractors||SPT Services Sdn Bhd, Malaysia||Not disclosed
On 14 December, Cargotec lowered 2018 guidance for operating profit excluding restructuring costs and expects the operating profit excluding restructuring costs for 2018 to be EUR 235-245 million. Earlier, based on the guidance given on 8 February 2018 Cargotec expected the operating profit excluding restructuring costs for 2018 to improve from 2017 (EUR 258.6 million, IFRS 15 restated).
Weaker profitability development in Hiab and MacGregor has resulted in lower than expected operating profit. Continuing bottlenecks in component supply chain and equipment installation capacity have resulted in extended delivery lead times in certain Hiab product categories and weaker than anticipated product mix. The component shortages have lead also to inefficiency and additional costs in assembly operations.
During the fourth quarter, MacGregor received clearances from both German and South Korean competition regulators for the acquisition of the marine and offshore business of TTS. MacGregor is still waiting for the approvals from the authorities in China, and that is why TTS acquisition is expected to close in Q1 2019. MacGregor earlier announced that it expects to receive all the needed approvals by the end of 2018 and to complete the transaction, according to the agreement, as soon as possible thereafter.
On 7 November, Cargotec announced it had issued Schuldschein loans in the amount of EUR 150 million. The transaction included floating and fixed rate tranches with maturities of 5 and 7 years. The Schuldschein loans were targeted to banks and institutional investors, with the proceeds going towards general corporate purposes, including refinancing and acquisitions.
On 21 December, Cargotec announced it had won its appeal in the USA to dispute a USD 13 million verdict of damages. In October 2016, Cargotec received a verdict of damages of USD 13 million in the USA in a local jury trial in Hempstead, USA. The verdict was related to business acquisition negotiations Cargotec USA had in 2010 and 2011. The negotiations were closed without results. The claim was based on Cargotec allegedly having breached confidentiality obligations related to the negotiations.
On 30 October, Cargotec announced MacGregor and China State Shipbuilding Corporation (CSSC) had signed a Letter of Intent (LOI) on strategic cooperation. MacGregor sees that this cooperation will further strengthen its presence in Asia and specifically in China, the world's biggest shipbuilding market. CSSC is a very important partner for MacGregor, as it is the primary shipbuilding group in China and well positioned as a global leader in the industry. The LOI relates to MacGregor's planned acquisition of the marine and offshore businesses of TTS Group and future cooperation potential between the two groups.
During the quarter, Cargotec announced it had made two major investments to support digitalisation and innovation capabilities. On 20 November, Cargotec announced it will invest EUR 32 million in accelerating the development of digital solutions to secure growth of new digital business. As part of the investment, Cargotec will open a new Digital Solutions Hub in Tampere, Finland. On 22 November, Kalmar announced it had officially inaugurated its new Innovation Centre in Ljungby, southern Sweden. Approximately 200 people will be based at the state of the art facility that has been designed to support new collaborative ways of working with modern architecture and cutting edge technology.
On 27 December, Cargotec announced the change of auditor. The Finnish Patent and Registration Office had designated Markku Katajisto, Authorised Public Accountant, as the company's statutory auditor for the financial year 2018, with the role taking effect immediately. Markku Katajisto will replace Tomi Hyryläinen as the company's auditor, as Tomi Hyryläinen has on 20 December 2018 announced his resignation from this position.
After the change, Cargotec's statutory auditors are PricewaterhouseCoopers Oy, Authorised Public Accountants and Markku Katajisto, Authorised Public Accountant.
On 19 December, Cargotec announced it will start to repurchase its own shares. Between 20 and 28 December, a total of 160,000 own shares were repurchased. There was also a purchase of 40,000 shares on 2 January 2019. The total price of the purchases was 5,507,796.00 euros. Cargotec Corporation now holds a total of 419,603 shares including the shares repurchased in December and January. Read more details about the repurchase on Cargotec’s Investors webpage.
During the fourth quarter, Cargotec organised an investor event in Singapore in cooperation with KONE and Kemira. Cargotec hosted its part of the two-day event on 31 October, and the programme consisted of presentations given by Peter Cederholm, President of Bromma and Michel van Roozendaal, President of MacGregor. There was also a visit to PSA Singapore, the second largest container port in the world. Read a blog post of the event, watch video recaps or take a look at the material from the event here.
In addition, Cargotec hosted roadshows in Edinburgh, London, New York, and Toronto.
Take a look at the consensus estimates.
Come to meet Scott Phillips, new president of Hiab, on 27 February 2019 in Helsinki.
Take a look at our IR calendar for other upcoming events and roadshows in 2019.
Cargotec organised an investor event in Singapore in October 2018. In the below videos, MacGregor President Michel van Roozendaal as well as Bromma President Peter Cederholm tell about their businesses. The videos have English subtitles.