– Kalmar’s profitability improved

– Record high orders received and operating profit margin in Hiab

– MacGregor’s operating profit remained positive due to cost savings

January-March 2017 in brief: Share of software and services increased

Orders received decreased 5 percent and totalled EUR 857 (903) million.

Order book amounted to EUR 1,834 (31 Dec 2016: 1,783) million at the end of the period.

Sales declined 4 percent and totalled EUR 793 (828) million.

Service sales totalled EUR 215 (211) million, representing 27 (25) percent of consolidated sales.

Software sales increased 28% and totalled EUR 35 (28) million.

Operating profit excluding restructuring costs was EUR 59.2 (58.5) million, representing 7.5 (7.1) percent of sales.

Operating profit was EUR 56.3 (57.7) million, representing 7.1 (7.0) percent of sales.

Cash flow from operations before financial items and taxes totalled EUR 12.5 (90.8) million.

Net income for the period amounted to EUR 36.5 (39.1) million.

Earnings per share was EUR 0.57 (0.61).

Outlook for 2017 unchanged

Cargotec reiterates its outlook published on 8 February 2017 and expects its operating profit excluding restructuring costs for 2017 to improve from 2016 (EUR 250.2 million).

Cargotec’s key figures

MEUR

Q1/17

Q1/16

Change

2016

Orders received

857

903

-5%

3,283

Service orders received

226

227

0%

889

Order book, end of period

1,834

2,095

-12%

1,783

Sales

793

828

-4%

3,514

Service sales

215

211

2%

872

Software sales*

35

28

28%

148

Service and software sales, % of Cargotec’s sales

32

29

29

Operating profit**

59.2

58.5

1%

250.2

Operating profit, %**

7.5

7.1

7.1

Operating profit

56.3

57.7

-2%

197.7

Operating profit, %

7.1

7.0

5.6

Income before taxes

47.9

50.9

-6%

169.1

Cash flow from operations

12.5

90.8

-86%

373.0

Net income for the period

36.5

39.1

-7%

125.3

Earnings per share, EUR

0.57

0.61

-6%

1.95

Net debt, end of period

631

603

5%

503

Gearing, %

45.4

45.3

36.0

Net debt / EBITDA

2.2

2.1

1.8

Return on capital employed

(ROCE, annualised), %

9.5

10.8

8.8

Personnel, end of period

11,055

11,203

-1%

11,184

*Software sales includes Navis business unit and automation software

**Excluding restructuring costs

Cargotec’s CEO Mika Vehviläinen: Record-high quarter in Hiab

The year 2017 started with a strong note, particularly at Hiab, where the orders received and the operating profit margin reached an all-time high. Kalmar’s development as a whole was at a satisfactory level. Its profitability improved and demand was healthy especially in mobile equipment. As in 2016, MacGregor’s market situation continued to be challenging. However, we are pleased that we managed to keep MacGregor profitable, and that its orders received increased compared to the last quarter of 2016.

By 2020, our goal is to increase the share of services and software to 40 percent of Cargotec’s sales. Service sales grew at Hiab and Kalmar but decreased at MacGregor as a result of the difficult market situation. Our software business developed positively in the first quarter, which reflects our efforts over the past few years. During the first quarter, already as much as 32 percent of our sales came from services and software.

We see many possibilities to improve the performance of the cargo handling value chain. With our solutions, know-how and expertise we want to help our customers make their operations more efficient. We are proceeding well towards our target to be the leader in intelligent cargo handling.

Reporting segments’ key figures

Orders received

MEUR

Q1/17

Q1/16

Change

2016

Kalmar

448

454

-1%

1,721

Hiab

288

275

5%

1,016

MacGregor

121

173

-30%

546

Internal orders received

0

0

-1

Total

857

903

-5%

3,283

Order book

MEUR

31 Mar 2017

31 Dec 2016

Change

Kalmar

977

900

9%

Hiab

302

286

6%

MacGregor

556

598

-7%

Internal order book

-1

-1

Total

1,834

1,783

3%

Sales

MEUR

Q1/17

Q1/16

Change

2016

Kalmar

364

367

-1%

1,700

Hiab

270

246

10%

1,036

MacGregor

160

216

-26%

778

Internal sales

0

0

-1

Total

793

828

-4%

3,514

Operating profit excluding restructuring costs

MEUR

Q1/17

Q1/16

Change

2016

Kalmar

27.9

25.6

9%

135.3

Hiab

39.6

32.4

22%

140.0

MacGregor

2.4

9.2

-74%

17.9

Corporate administration and support functions

-10.7

-8.7

-42.9

Total

59.2

58.5

1%

250.2

Operating profit

MEUR

Q1/17

Q1/16

Change

2016

Kalmar

26.6

25.2

6%

115.6

Hiab

39.5

32.2

23%

138.8

MacGregor

1.8

9.0

-80%

-13.7

Corporate administration and support functions

-11.7

-8.7

-42.9

Total

56.3

57.7

-2%

197.7

Full Report

Source: Cargotec Corporation