Cargotec Logs Higher Profits
Cargotec's January-March 2016 interim report: Profitability improved according to target
* Strong order intake in Kalmar and Hiab
* MacGregor profitability satisfactory considering current market situation
* Strategy execution proceeding as planned
January-March 2016 in brief
* Orders received decreased 4 percent and totalled EUR 903 (939) million.
* Order book amounted to EUR 2,095 (31 Dec 2015: 2,064) million at the end of the period.
* Sales declined 7 percent and totalled EUR 828 (889) million.
* Operating profit excluding restructuring costs increased 12 percent and was EUR 58.5 (52.3) million, representing 7.1 (5.9) percent of sales.
* Operating profit was EUR 57.7 (51.3) million, representing 7.0 (5.8) percent of sales.
* Cash flow from operations before financial items and taxes totalled EUR 90.8 (51.6) million.
* Net income for the period amounted to EUR 39.1 (36.4) million.
* Earnings per share was EUR 0.61 (0.56).
Outlook for 2016 unchanged
Cargotec's 2016 sales are expected to be at the 2015 level (EUR 3,729 million) or slightly below. Operating profit excluding restructuring costs for 2016 is expected to improve from 2015 (EUR 230.7 million).
Cargotec's key figures
|
MEUR |
1-3/2016 |
1-3/2015 |
Change |
2015 |
|
Orders received |
903 |
939 |
-4% |
3,557 |
|
Order book, end of period |
2,095 |
2,469 |
-15% |
2,064 |
|
Sales |
828 |
889 |
-7% |
3,729 |
|
Operating profit* |
58.5 |
52.3 |
12% |
230.7 |
|
Operating profit, %* |
7.1 |
5.9 |
|
6.2 |
|
Operating profit |
57.7 |
51.3 |
13% |
213.1 |
|
Operating profit, % |
7.0 |
5.8 |
|
5.7 |
|
Income before taxes |
50.9 |
47.5 |
|
186.2 |
|
Cash flow from operations |
90.8 |
51.6 |
|
314.6 |
|
Net income for the period |
39.1 |
36.4 |
|
142.9 |
|
Earnings per share, EUR |
0.61 |
0.56 |
|
2.21 |
|
Net debt, end of period |
603 |
789 |
|
622 |
|
Gearing, % |
45.3 |
62.2 |
|
46.4 |
|
Personnel, end of period |
11,203 |
10,698 |
|
10,837 |
*excluding restructuring costs
Cargotec's CEO Mika Vehviläinenm commented,"The start of the year 2016 was strong in Kalmar and Hiab, whereas the market situation in MacGregor remained challenging, as in the previous year. Despite the lack of orders for large automation projects, orders for Kalmar reached the comparison period's level and Hiab's order intake grew eight percent from the comparison period. Our sales declined seven percent from the comparison period. As earlier announced, the timing of Kalmar's deliveries lowered its first-quarter volume. MacGregor's sales were burdened by the challenging market situation. However, Kalmar's strengthened order book supports our growth target for the full year. According to target, our profitability improved to seven percent thanks to Hiab's very strong quarter. Due to restructuring measures undertaken in 2015, MacGregor's profitability was satisfactory considering the current market situation.
Execution of our strategy published at the end of 2015 is proceeding according to plan in all three focus areas: services, digitalisation and leadership development. In March, we closed the INTERSCHALT acquisition, which is important for the development of our services and software businesses. In early April, we organised our first hackathon, where 57 hackers-chosen from numerous volunteers-invented, among other things, the use of mobile technologies at ports. At the exhibition for load handling equipment, we also introduced a new virtual way of controlling a forestry crane remotely from inside a truck cabin. In addition, during the quarter we launched an internal leadership development programme, which will continue throughout the year.
