Cargotec's January-September 2012 interim report: Focus on improving profitability

CARGOTEC CORPORATION, INTERIM REPORT, 25 OCTOBER 2012 AT 12 PM EEST

July-September 2012 in brief

• Orders received decreased 11 percent and totalled EUR 719 (811) million.
• Order book amounted to EUR 2,312 (31 Dec 2011: 2,426) million at the end of the period.
• Sales grew 5 percent to EUR 794 (753) million.
• Operating profit was EUR 38.5 (54.4) million, representing 4.9 (7.2) percent of sales.
• Operating profit excluding restructuring costs was EUR 39.0 (54.4) million, representing 4.9 (7.2) percent of sales.
• Cash flow from operations before financial items and taxes totalled EUR 34.2 (6.4) million.
• Net income for the period amounted to EUR 24.9 (35.7) million.
• Earnings per share was EUR 0.41 (0.58).

 

January-September 2012 in brief

• Orders received totalled EUR 2,348 (2,391) million.
• Sales grew 5 percent to EUR 2,437 (2,310) million.
• Operating profit was EUR 117.3 (159.1) million, representing 4.8 (6.9) percent of sales.
• Operating profit excluding restructuring costs was EUR 117.7 (159.1) million, representing 4.8 (6.9) percent of sales.
• Cash flow from operations before financial items and taxes totalled EUR 6.4 (78.0) million.
• Net income for the period amounted to EUR 80.4 (114.5) million.
• Earnings per share was EUR 1.31 (1.86).

 

Outlook for 2012 (published 15 October 2012)

The operating profit margin for 2012 is expected to be approximately 5 percent excluding non-recurring costs. Sales are expected to grow from 2011.

Cargotec's key figures

 

MEUR	Q3/12	Q3/11	Change	Q1-Q3/12	Q1-Q3/11	Change	2011
Orders received	719	811	-11%	2,348	2,391	-2%	3,233
Order book, end of period	2,312	2,349	-2%	2,312	2,349	-2%	2,426
Sales	794	753	5%	2,437	2,310	5%	3,139
Operating profit	38.5	54.4	-29%	117.3	159.1	-26%	207.0
Operating profit, %	4.9	7.2		4.8	6.9		6.6
Operating profit*	39.0	54.4	-28%	117.7	159.1	-26%	207.0
Operating profit, %*	4.9	7.2		4.8	6.9		6.6
Income before taxes	35.0	51.3		108.7	148.3		191.9
Cash flow from operations	34.2	6.4		6.4	78.0		166.3
Net income for the period	24.9	35.7		80.4	114.5		149.3
Earnings per share, EUR	0.41	0.58		1.31	1.86		2.42
Net debt, end of period	485	362		485	362		299
Gearing, %	38.8	32.7		38.8	32.7		25.4
Personnel, end of period	10,550	10,970		10,550	10,970		10,928

 

* excluding restructuring costs

 

Cargotec's interim President and CEO Tapio Hakakari:

Major restructuring has been launched in Cargotec, in order to improve profitability. In the future, each business area Marine, Terminals and Load Handling will include services and operate more independently than before. This operating model will also support Marine's preparations for its listing in Asia. Business areas will be named after their industry leading brands MacGregor, Kalmar and Hiab. Through these changes, we are seeking to improve our efficiency and reduce fixed costs.

 

Press conference for analysts and media

A press conference for analysts and media, combined with a live international telephone conference, will be arranged on the publishing day at 3:00 pm EEST at Cargotec's head office, Sörnäisten rantatie 23, Helsinki. The event will be held in English. The interim report will be presented by Executive Vice President, CFO Eeva Sipilä. The presentation material will be available at www.cargotec.com by 3:00 pm EEST.

The telephone conference, during which questions may be presented, can be accessed using the following numbers ten minutes before the beginning of the event: US callers +1 334 323 6203, non-US callers +44 20 7162 0125, access code Cargotec/914117.

The event can also be viewed as a live webcast at www.cargotec.com. An on-demand version of the conference will be published at Cargotec's website later during the day.

A replay of the conference call will be available until midnight 27 October 2012 in the following numbers: US callers +1 954 334 0342, non-US callers +44 20 7031 4064, access code 914117.

For further information, please contact:

Eeva Sipilä, Executive Vice President and CFO, tel. +358 20 777 4104

Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084

Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 3.1 billion in 2011 and it employs approximately 10,500 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com

Attachment:

• Interim report in pdf format