Cargotec's January-June 2013 interim report: Business developed as estimated during the second quarter
18/07/2013
CARGOTEC CORPORATION, INTERIM REPORT, 18 JULY 2013 AT 12.30 PM EEST
April-June 2013 in brief
· Orders received declined 7 percent to EUR 833 (892) million.
· Order book amounted to EUR 2,147 (31 Dec 2012: 2,021) million at the end of the period.
· Sales fell 2 percent to EUR 836 (850) million.
· Operating profit excluding restructuring costs was EUR 37.5 (41.1) million, representing 4.5 (4.8) percent of sales.
· Operating profit was EUR 32.9 (41.1) million, representing 3.9 (4.8) percent of sales.
· Cash flow from operations before financial items and taxes totalled EUR -12.4 (-25.6) million.
· Net income for the period amounted to EUR 21.9 (29.3) million.
· Earnings per share was EUR 0.36 (0.48).
January-June 2013 in brief
· Orders received were at comparison period's level and totalled EUR 1,624 (1,629) million.
· Sales fell 8 percent to EUR 1,515 (1,643) million.
· Operating profit excluding restructuring costs was EUR 52.5 (78.7) million, representing 3.5 (4.8) percent of sales.
· Operating profit was EUR 46.1 (78.7) million, representing 3.0 (4.8) percent of sales.
· Cash flow from operations before financial items and taxes totalled EUR 8.8 (-27.8) million.
· Net income for the period amounted to EUR 28.4 (55.5) million.
· Earnings per share was EUR 0.46 (0.90).
Outlook for 2013
Certain deliveries for MacGregor will be delayed and customers are postponing services. MacGregor's 2013 operating profit margin is expected to be slightly below 10 percent, as 2013 sales are falling short of the previously expected approximately EUR 850 million and now are expected to total closer to EUR 800 million.
Cargotec's sales are expected to be slightly below 2012 and operating profit excluding restructuring costs to be at or slightly below 2012 level.
This outlook is excluding the Hatlapa acquisition announced in July.
Cargotec's key figures
| MEUR | Q2/13 | Q2/12 | Change | Q1-Q2/13 | Q1-Q2/12 | Change | 2012 |
| Orders received | 833 | 892 | -7% | 1,624 | 1,629 | 0% | 3,058 |
| Order book, end of period | 2,147 | 2,413 | -11% | 2,147 | 2,413 | -11% | 2,021 |
| Sales | 836 | 850 | -2% | 1,515 | 1,643 | -8% | 3,327 |
| Operating profit* | 37.5 | 41.1 | -9% | 52.5 | 78.7 | -33% | 157.5 |
| Operating profit, %* | 4.5 | 4.8 | 3.5 | 4.8 | 4.7 | ||
| Operating profit | 32.9 | 41.1 | -20% | 46.1 | 78.7 | -41% | 131.4 |
| Operating profit, % | 3.9 | 4.8 | 3.0 | 4.8 | 3.9 | ||
| Income before taxes | 29.6 | 39.0 | 40.4 | 73.6 | 122.5 | ||
| Cash flow from operations | -12.4 | -25.6 | 8.8 | -27.8 | 97.1 | ||
| Net income for the period | 21.9 | 29.3 | 28.4 | 55.5 | 89.5 | ||
| Earnings per share, EUR | 0.36 | 0.48 | 0.46 | 0.90 | 1.45 | ||
| Net debt, end of period | 567 | 497 | 567 | 497 | 478 | ||
| Gearing, % | 48.9 | 42.1 | 48.9 | 42.1 | 39.2 | ||
| Personnel, end of period | 10,302 | 10,608 | 10,302 | 10,608 | 10,294 |
* excluding restructuring costs
Cargotec's President and CEO Mika Vehviläinen:
Both market activity and our orders continued to develop as estimated during the second quarter, even though we fell seven percent short from the comparison period, as the second quarter lacked new large Kalmar projects. Orders for cargo handling equipment for offshore support vessels accounted for almost half of MacGregor's orders, and orders for the business area as a whole rose by 67 percent on the comparison period. Hiab's orders reached the level of the comparison period.
Volumes in the marine cargo handling market are lower than last year, which is reducing our sales. Favourable trends were seen in both Kalmar and Hiab's delivery volumes and profitability during the second quarter. We are continuing our efforts to improve our profitability.
In July, we took an important strategic step in MacGregor's development by signing an agreement to acquire Hatlapa. Hatlapa supports MacGregor's growth strategy and will help MacGregor to become a global leader in winches for various ship types.
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 2:00 p.m. EEST at Cargotec's head office, Porkkalankatu 5, Helsinki. The event will be held in English. The report will be presented by President and CEO Mika Vehviläinen and Executive Vice President, CFO Eeva Sipilä. The presentation material will be available at www.cargotec.com by 2:00 p.m. 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 6201, non-US callers +44 20 7162 0025, access code Cargotec/933708.
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 20 July 2013 in the following numbers: US callers +1 954 334 0342, non-US callers +44 20 7031 4064, access code 933708.
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 brands MacGregor, Kalmar and Hiab 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 3.3 billion in 2012 and it employs approximately 10,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com