CARGOTEC CORPORATION, 2019 HALF YEAR FINANCIAL REPORT, 18 JULY 2019 AT 2.00 PM EEST
Cargotec’s January–June 2019 half year financial report: Good progress in Hiab and Kalmar
April–June 2019 in brief: Operating profit increased
January–June 2019 in brief: Orders received increased
Outlook for 2019
Cargotec reiterates its outlook published on 8 February 2019 and expects its comparable operating profit for 2019 to improve from 2018 (EUR 242.1 million).
Cargotec’s key figures
Cargotec applies the accounting standard IFRS 16, Leases, and the interpretation IFRIC 23, Uncertainty over Income Tax Treatments, starting from 1 January 2019. More information on the standards is available in Note 2, Accounting principles and new accounting standards. Cargotec has also refined the definition of service business for Hiab and MacGregor from the beginning of 2019. The figures related to service business have been restated for the comparison period 2018 accordingly. Cargotec has published a stock exchange release on 4 April 2019 regarding the changes.
|Service orders received||279||258||8%||540||514||5%||1,031|
|Order book, end of period||2,072||1,786||16%||2,072||1,786||16%||1,995|
|Service and software sales, |
% of Cargotec’s sales
|Operating profit||53.0||21.3||> 100%||104.1||74.5||40%||190.0|
|Operating profit, %||5.8%||2.6%||5.9%||4.7%||5.8%|
|Comparable operating profit||64.3||57.2||12%||121.7||114.7||6%||242.1|
|Comparable operating profit, %||7.1%||7.0%||6.9%||7.2%||7.3%|
|Income before taxes||44.9||15.5||> 100%||87.7||62.0||41%||161.1|
|Cash flow from operations before financing items and taxes||41.4||26.5||56%||72.3||22.8||> 100%||125,8|
|Net income for the period||29.0||2.3||> 100%||60.0||36.0||67%||108.0|
|Earnings per share, EUR||0.45||0.03||> 100%||0.93||0.55||70%||1.66|
|Interest-bearing net debt, end of period||876||589||49%||876||589||49%||625|
|Interest-bearing net debt / EBITDA**||2.8||2.3||2.8||2.3||2.3|
|Return on capital employed |
(ROCE), last 12 months, %
|Personnel, end of period||12,335||11,502||7%||12,335||11,502||7%||11,987|
*Software sales include Navis business unit and automation software
**Last 12 months’ EBITDA
Cargotec’s CEO Mika Vehviläinen: Operating profit increased at Kalmar and Hiab
The second quarter of 2019 was two-fold at Cargotec. Result at our biggest business area Kalmar developed strongly and its operating profit grew by 41 percent. Operating profit increased also at Hiab and in the second quarter it was the best ever. We made progress in solving the supply chain challenges during the beginning of the year.
On the other hand, MacGregor’s market situation remained challenging and its operating profit declined. During recent years we have already reduced MacGregor’s costs significantly, and we will continue with the streamlining during the second half of 2019 as well. We strengthen MacGregor by acquiring of the marine and offshore businesses of TTS Group ASA. All the needed regulatory approvals to be able to complete the transaction have now been received and we expect to close the transaction on 31 July 2019. The scale benefits of the acquisition create opportunity to further improve productivity and global presence. The merger of the two leading companies in their field provides us with excellent opportunities to better serve our customers, strengthen our competitiveness and continue to develop our products and services.
In terms of orders received, the good development continued at Hiab with orders increasing by 13 percent compared to the comparison period. Kalmar’s orders received declined, which was to be expected, as the comparison period’s order intake included an 80 million euro agreement to deliver a state-of-the-art, fully automated terminal solution to Australia. At MacGregor the orders received decreased.
Our service and software business continued to develop favourably. Service orders received increased by eight percent and service sales increased by five percent. Software sales grew by 42 percent. The sales of our services and software business was close to 1.2 billion euros during the last 12 months, keeping us well on track in terms of our target to reach 1.5 billion euros.
Reporting segments’ key figures
|MEUR||30 Jun 2018||31 Dec 2018||Change|
|MacGregor||-12.9||2.8||< -100%||-13.6||3.0||< -100%||-4.2|
|Corporate administration and support functions||-15.9||-45.4||65%||-28.8||-56.3||49%||-77.7|
Comparable operating profit
|MacGregor||-11.0||3.5||< -100%||-9.8||4.2||< -100%||-1.6|
|Corporate administration and support functions||-13.0||-10.9||-18%||-22.8||-19.0||-20%||-34.4|
Press conference for analysts and media
A press conference for analysts and media, combined with a live international telephone conference, will be arranged on 18 July 2019 at 3.00 p.m. EEST at Cargotec’s head office, Porkkalankatu 5, Helsinki. The event will be held in English. The report will be presented by CEO Mika Vehviläinen and Executive Vice President, CFO Mikko Puolakka. The presentation material will be available at www.cargotec.com by latest 2.30 p.m. EEST.
The telephone conference, during which questions may be presented, can be accessed with access code 802270 using the following numbers:
FI: +358 (0)9 7479 0360
SE: +46 (0)8 5033 6573
UK: +44 (0)330 336 9104
US: +1 323-794-2558
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.
For further information, please contact:
Mikko Puolakka, Executive Vice President and CFO, tel. +358 20 777 4105
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084
Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec's sales in 2018 totalled approximately EUR 3.3 billion and it employs around 12,000 people. www.cargotec.com