Cargotec’s Interim Report for January–September 2008
Stock Exchange Release, October 20 at 12:00 p.m. Finnish time
• Cargotec’s restructuring measures announced in September are estimated to lead to annual cost savings of EUR 25 million. The plan affects some 700 people. The savings actions are expected to result in costs and asset write downs of approximately EUR 35 million.
• Orders received during January–September 2008 totalled EUR 3,136 (2,892) million. During the third quarter, orders received were EUR 967 (1,028) million.
• The order book continued to strengthen, reaching EUR 3,486 (December 31, 2007: 2,865) million at the end of the reporting period.
• Sales grew in January–September by 15 percent, amounting to EUR 2,476 (2,151) million with services sales representing 26 (25) percent of total sales. Sales for the third quarter were EUR 848 (713) million.
• Operating profit for January–September was EUR 156.9 (156.8) million with EUR 49.6 (52.5) million attributable to the third quarter. Operating margin for January–September was 6.3 (7.3) percent and 5.8 (7.4) for the third quarter.
• Cash flow from operating activities before financial items and taxes totalled EUR 158.1 (138.8) million.
• Net income for the reporting period amounted to EUR 111.9 (109.5) million.
• Earnings per share for January–September were EUR 1.77 (1.72).
• The number of personnel totalled 12,000 (December 31, 2007: 11,187) at the end of September.
• The market situation in the large project side of container handling is healthy, and offers are at a high level. On the other hand in construction related customer segments in Europe and the US the market situation in load handling has further weakened from September. The ship building market is evening out as earlier expected. Order intake in the final quarter of the year is according to earlier expectations expected to be below the high level of previous quarters. Cargotec’s 2008 sales growth is expected to be approximately 13 percent. The growth rate in the final quarter is likely to slow from January–September due to the economic uncertainty and a possibility of project deliveries being delayed. Operating margin for full year 2008 is estimated to be at the January–September margin level. The margin estimate is excluding the expected costs and asset write downs from restructuring operations, in total approximately EUR 35 million.
Cargotec’s President and CEO Mikael Mäkinen:
“There is a significant amount of uncertainty related to the market environment currently. Orders received have clearly decreased in Hiab forcing us to take strong restructuring measures. In our other businesses, order intake still exceeded our expectations. Kalmar’s profitability has, however, not improved at the expected rate. Therefore also there we aim to restructure our operations to become more competitive. Our strong financial position enables us to take actions to improve our long-term profitability in this challenging market situation.”
Analyst and Press Conference
An analyst and press conference will be combined with a live international telephone conference and arranged on October 20, 2008 at 2.00 p.m. Finnish time at Cargotec’s head office, Sörnäisten rantatie 23, Helsinki. The whole combined event will be held in English. The interim report will be presented by Cargotec’s President and CEO Mikael Mäkinen. The presentation material will be available on the Company’s internet pages by 2.00 p.m. Finnish time.
The conference call phone numbers are the following:
+1 646 843 4608 (US callers)
+44 20 3023 4412 (non-US callers)
Access code: Cargotec Corporation
The telephone conference can also be viewed as a live audio webcast through the internet pages at www.cargotec.com. The archived webcast will be available on the internet pages later during the day.
The entire Interim Report including tables is available in the attached pdf file.
For further information, please contact:
Eeva Sipilä, CFO, tel. +358 204 55 4281
Paula Liimatta, IR Manager, tel. +358 204 55 4634
Cargotec improves the efficiency of cargo flows by offering handling systems and the related services for the loading and unloading of goods. Cargotec’s brands, Hiab, Kalmar and MacGREGOR, are global market leaders in their fields and their solutions are used on land and at sea – wherever cargo is on the move. Extensive services close to customers ensure the continuous usability of equipment. Cargotec is the technology leader in its field, its R&D focusing on innovative solutions that take environmental considerations into account. Cargotec’s sales exceed EUR 3 billion and the Company employs approximately 12,000 people. Cargotec’s class B shares are quoted on the NASDAQ OMX Helsinki.