GlobeNewswire

Cargotec’s interim report January–September 2020: Performance improved from the second quarter

Share

CARGOTEC CORPORATION, Q3 2020 INTERIM REPORT, 22 OCTOBER 2020 AT 2:00 PM EEST

Cargotec’s interim report January–September 2020: Performance improved from the second quarter

  • Orders received, sales and comparable operating profit improved from Q2/2020 but remained below the comparison period
  • Cost savings and productivity improvements enhanced profitability
  • Cargotec expects its comparable operating profit for H2/2020 to increase compared to H1/2020
  • Cargotec and Konecranes announced plans to merge on 1 October. The merger is subject to the obtaining of merger control approvals, among other items.

July–September 2020 in brief: Relative profitability at the comparison period’s level

  • Orders received decreased by 14 percent and totalled EUR 740 (858) million.
  • Order book amounted to EUR 1,751 (31 Dec 2019: 2,089) million at the end of the period.
  • Sales decreased by 14 percent and totalled EUR 777 (901) million.
  • Service sales decreased by 9 percent and totalled EUR 244 (269) million.
  • Service and software sales represented 36 (35) percent of consolidated sales.
  • Operating profit was EUR 46 (58) million, representing 5.9 (6.4) percent of sales. Operating profit includes items affecting comparability worth EUR -11 (-10) million.
  • Comparable operating profit decreased by 17 percent and amounted to EUR 57 (68) million, representing 7.3 (7.6) percent of sales.
  • Cash flow from operations before financial items and taxes totalled EUR 74 (81) million.
  • Net income for the period amounted to EUR 27 (30) million.
  • Earnings per share was EUR 0.41 (0.46).

January–September 2020 in brief: Service business remained stable in an exceptional environment

  • Orders received decreased by 22 percent and totalled EUR 2,158 (2,752) million.
  • Sales decreased by 10 percent and totalled EUR 2,391 (2,669) million.
  • Service sales decreased by 4 percent and totalled EUR 743 (777) million.
  • Service and software sales represented 36 (34) percent of consolidated sales.
  • Operating profit was EUR 53 (162) million, representing 2.2 (6.1) percent of sales. Operating profit includes items affecting comparability worth EUR -87 (-28) million.
  • Comparable operating profit decreased by 27 percent and amounted to EUR 140 (190) million, representing 5.8 (7.1) percent of sales.
  • Cash flow from operations before financial items and taxes totalled EUR 101 (153) million.
  • Net income for the period amounted to EUR 1 (90) million.
  • Earnings per share was EUR 0.03 (1.39).

Outlook for 2020

Cargotec expects its comparable operating profit for H2/2020 to increase compared to H1/2020 (EUR 82.9 million)

Cargotec’s key figures

MEURQ3/20Q3/19ChangeQ1-Q3/20Q1-Q3/19Change2019
Orders received740858-14%2,1582,752-22%3,714
Service orders received229262-13%723803-10%1,079
Order book, end of period1,7512,251-22%1,7512,251-22%2,089
Sales777901-14%2,3912,669-10%3,683
Service sales244269-9%743777-4%1,062
Software sales*3844-12%1221220%168
Service and software sales, % of Cargotec's sales36%35%36%34%33%
Operating profit45.857.9-21%52.8162.0-67%180.0
Operating profit, %5.9%6.4%2.2%6.1%4.9%
Comparable operating profit56.668.3-17%139.5190.0-27%264.4
Comparable operating profit, %7.3%7.6%5.8%7.1%7.2%
Income before taxes38.350.0-23%29.9137.7-78%145.9
Cash flow from operations before financing items and taxes74.180.8-8%100.5153.1-34%361.1
Net income for the period26.629.7-11%1.489.7-98%89.4
Earnings per share, EUR0.410.46-11%0.031.39-98%1.39
Interest-bearing net debt, end of period851927-8%851927-8%774
Gearing, %65.8%64.5%65.8%64.5%54.2%
Interest-bearing net debt / EBITDA**3.82.83.82.82.5
Return on capital employed (ROCE), last 12 months, %***2.8%9.0%2.8%9.0%7.3%
Personnel, end of period11,75812,742-8%11,75812,742-8%12,587

*Software sales include the strategic business unit Navis and automation software
**Last 12 months’ EBITDA
***Cargotec has refined the treatment of the interest rate component of currency forward contracts in the calculation of return on capital employed at the end of the financial year 2019. As a result, the return on capital employed increased by 0.4 percentage points in the third quarter of 2019.   

Cargotec’s CEO Mika Vehviläinen: Merger with Konecranes announced

Even in an exceptional operating environment, Cargotec's strategic direction has proved to be the right one and yet again we managed to make a reasonable result despite the pandemic situation. Visibility was still weak at the beginning of the third quarter but the recovery in the market environment that started after April eventually continued throughout the third quarter.

Our delivery capability returned back to normal during the quarter, and the same goes for our supply chain. On the other hand, the data collected from our connected equipment tells us that the activity levels of our customers have been rising closer to last year’s levels. In addition, for example Drewry's statistics on the number of containers handled in ports show that the reduction has so far proved to be less dramatic than what the forecasts predicted.

Following the strengthened confidence along the quarter, Cargotec's Board of Directors decided in August on the second instalment of the dividend to be paid in accordance to the original proposal. In mid-September, as visibility improved, we also gave a financial outlook for the third quarter.

In accordance with our guidance, orders received increased compared to the second quarter, although decreasing by 14 percent from the third quarter 2019. Demand for Kalmar's mobile equipment and Hiab's solutions recovered in particular from the decline caused by the coronavirus pandemic. Regarding larger automation orders, uncertainty and pandemic restrictions still slowed down the customer decision making, and the situation in the offshore oil and gas as well as merchant ship markets remain challenging. However, MacGregor received a significant order during the quarter to supply a mission-critical system in an offshore wind foundation installation vessel. This is the largest single vessel contract secured by MacGregor.

The recovery trend in sales from the second quarter also continued and our services business remained stable. However, sales remained below the comparison period’s level, which was also reflected in a decrease in comparable operating profit. Productivity improvements and cost savings helped our relative profitability to still remain close to the comparison period’s level and, in accordance with our guidance, the comparable operating profit increased from the second quarter. Despite volumes being lower than in the comparison period, Kalmar's and Hiab's results were satisfactory and MacGregor's comparable operating profit rose to black numbers. In terms of cost savings, our focus is shifting from temporary measures to more permanent actions.

Our focus on product development and sustainability continues. Our research and development investments as well as sales of our eco-efficiency portfolio increased in the first nine months 2020.

On 1 October, we announced the plan to combine Cargotec and Konecranes through a merger.   The merger is subject to the obtaining of merger control approvals, among other items. More information about the merger is available from the web address www.sustainablematerialflow.com.

Reporting segments’ key figures

Orders received

MEURQ3/20Q3/19ChangeQ1-Q3/20Q1-Q3/19Change2019
Kalmar328396-17%9551,329-28%1,776
Hiab274307-11%793988-20%1,310
MacGregor139156-11%410437-6%630
Internal orders-10-1-1-1
Total740858-14%2,1582,752-22%3,714

Order book

MEUR30 Sep 202031 Dec 2019Change
Kalmar8341,049-21%
Hiab386406-5%
MacGregor532633-16%
Internal orders-10
Total1,7512,089-16%

Sales

MEURQ3/20Q3/19ChangeQ1-Q3/20Q1-Q3/19Change2019
Kalmar364424-14%1,1191,252-11%1,723
Hiab254307-17%799982-19%1,350
MacGregor158170-7%4744369%611
Internal sales00-10-1
Total777901-14%2,3912,669-10%3,683

Operating profit

MEURQ3/20Q3/19ChangeQ1-Q3/20Q1-Q3/19Change2019
Kalmar31.447.5-34%42.4113.3-63%154.4
Hiab25.930.3-14%72.3111.0-35%159.3
MacGregor-0.7-9.893%-35.6-23.4-52%-83.3
Corporate administration and support functions-10.9-10.1-8%-26.4-38.932%-50.4
Total45.857.9-21%52.8162.0-67%180.0

Comparable operating profit

MEURQ3/20Q3/19ChangeQ1-Q3/20Q1-Q3/19Change2019
Kalmar32.347.8-32%88.2117.8-25%161.8
Hiab30.934.1-9%85.4118.4-28%170.2
MacGregor1.6-5.8> 100%-7.3-15.653%-28.2
Corporate administration and support functions-8.2-7.7-6%-26.7-30.512%-39.5
Total56.668.3-17%139.5190.0-27%264.4

Telephone conference for analysts, investors and media

A live international telephone conference for analysts, investors and media will be arranged on the publishing day at 2:30 p.m. EEST. 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 the latest 2:30 p.m. EEST.

The telephone conference, during which questions may be presented, can be accessed by registering here. The registration opens 15 minutes prior to the event. The event conferencing system will call the participant on the phone number provided and place the participant into the event.

The telephone conference can also be accessed without advance registration with code 933290 by calling to one of the following numbers:

FI +358 (0) 9 7479 0360

DE +49 (0) 69 2222 13426

SE +46 (0) 8 5033 6573

UK +44 (0) 330 336 9104

US +1 646-828-8199

The event can also be viewed as a live webcast at https://cargotec.videosync.fi/2020-q3. The conference call will be recorded and an on-demand version of the conference will be published at Cargotec’s website later during the day.

Note that by dialling in to the conference call, the participant agrees that personal information such as name and company name will be collected.

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

THE MERGER AND THE MERGER CONSIDERATION SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN OR INTO THE UNITED STATES, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION OF, OR IN A TRANSACTION NOT SUBJECT TO, THE U.S. SECURITIES ACT.

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 2019 totalled approximately EUR 3.7 billion and it employs around 12,000 people. www.cargotec.com


Attachment

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

RomReal: Third Quarter (Q3) 2020 Results and Investor Presentation26.11.2020 23:00:00 CETPress release

RomReal hereby announces the results of the third quarter of 2020 via the report and investor presentation attached to this message. A webcast presentation will also be uploaded on our website www.romreal.com by 9am CET tomorrow 27 November 2020. For further information please contact: Harris Palaondas Investor Relations RomReal investors@romreal.com This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act Attachments RomReal - Q3 2020 PresentationRomReal - Q3 2020 Report

PRESS RELEASE: NACON: GREEDFALL EXTEND ITS JOURNEY WITH A NEW EXPANSION AND A RELEASE ON PLAYSTATION 5 AND XBOX SERIES S/X26.11.2020 18:00:00 CETPress release

GREEDFALL EXTEND ITS JOURNEY WITH A NEW EXPANSION AND A RELEASE ON PLAYSTATION 5 AND XBOX SERIES S/X Lesquin (France), November 26, 2020 – Following the success of GreedFall, which sold more than a million copies in less than a year, and considering the enthusiasm of all those who travelled the rich lands of Teer Fradee, NACON and Focus Home Interactive are happy to announce a new partnership aiming to expand the game with new content, as well as a release on PlayStation 5 and Xbox Series S/X. The two companies have thus reached an agreement, in which Focus Home Interactive will be in charge of the publishing of the upcoming additional content and expansion, as well as the PlayStation 5 and Xbox Series S/X versions of GreedFall. The GreedFall brand is now integrated as part of the NACON portfolio. Released September 10, 2019, GreedFall is an RPG experience in which you explore uncharted lands seeping with magic, filled with secrets and fantastic creatures. With diplomacy, deception and

KBC Group: KBC finalises acquisition of OTP Banka Slovensko (Slovakia)26.11.2020 18:00:00 CETPress release

Joint Press Release Outside trading hours – Regulated information* Brussels, Budapest, Bratislava – 26 November 2020 – 6 p.m. CET KBC finalises acquisition of OTP Banka Slovensko (Slovakia) Belgium’s KBC Group and OTP Bank, the Hungarian parent company of OTP Banka Slovensko (Slovakia), today closed the agreement announced on 17 February 2020 for KBC Bank NV to acquire ownership of 99.44% of the shares in OTP Banka Slovensko, a.s. (OTP Banka Slovensko). The remaining shares are held by a number of private individuals. The transaction received regulatory approval from the National Bank of Slovakia (NBS), the National Bank of Belgium (NBB), the European Central Bank (ECB) and the Antimonopoly Office of the Slovak Republic. It has only a limited impact (-0.2%) on KBC’s solid capital position, keeping KBC’s excellent 3Q2020 CET1 ratio of 16.6% (Basel III fully loaded, Danish compromise) well above regulatory minimum capital requirements. As a result of the transaction, KBC Bank NV is now t

IMCD to acquire the personal care business of Turkish distributor Ejder Kimya26.11.2020 17:45:00 CETPress release

ROTTERDAM, The Netherlands (26 November 2020) – IMCD N.V. (“IMCD”), a leading distributor of speciality chemicals and ingredients, today announces that it has successfully signed an agreement to acquire the personal care business of Ejder Kimya İlaç Danışmanlık Sanayi ve Ticaret A.Ş. (“Ejder Kimya”). Ejder Kimya was founded in 1999 and is a Turkish chemicals distributor of raw materials for personal care and pharmaceuticals products and food additives. It has a strong and solid position in the personal care market in Turkey. Ejder Kimya’s personal care business generated a revenue of € 4.7 million in 2019. Aylin Zakuto, Managing Director IMCD Turkey, comments: “This acquisition is a solid step to strengthen IMCD Turkey’s footprint in the personal care market in line with IMCD’s global growth strategy. Adding Ejder Kimya’s personal care market expertise and extensive portfolio to IMCD will expand our offered solutions to customers and accelerate the growth of our suppliers in the person

Information regarding the early redemption of the 2021 bonds26.11.2020 17:00:00 CETPress release

Press release: Information to Bondholders 26 November 2020 Information regarding the early redemption of the 2021 bonds NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED) OR IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS PRESS RELEASE. THE DISTRIBUTION OF THIS PRESS RELEASE IN CERTAIN JURISDICTIONS (IN PARTICULAR, THE UNITED STATES AND THE UNITED KINGDOM) MAY BE RESTRICTED BY LAW. On 29 October 2020, Cembrit Group A/S exercised its right to make a voluntary early redemption of its outstanding senior secured callable bonds maturing on 20 March 2021 with ISIN SE0009722887 and outstanding amount of EUR 115

Saniona AB’s Nomination Committee for the Annual General Meeting 202126.11.2020 16:00:00 CETPress release

PRESS RELEASE November 26, 2020 Saniona (OMX: SANION), a clinical stage biopharmaceutical company focused on rare diseases, today announced the composition of the Nomination Committee for the Annual General Meeting 2021. Pursuant to the instruction and charter for the Nomination Committee adopted by the general meeting, the Nomination Committee shall be comprised of three members, which shall be the Chairman of the Board of Directors and two members appointed by the two largest shareholders as of last September. On September 30, 2020, the two largest shareholders, which desired to appoint a representative to the Nomination Committee, were Jørgen Drejer and New Leaf Venture Partners. Each such shareholder has appointed a representative, as shown below, who together with the Chairman of the Board of Directors will form Saniona AB’s Nomination Committee. The Nomination Committee’s members are: Søren Skjærbæk, Partner at Ursus law firm, Vejle, Denmark, appointed by Jørgen DrejerJohn Haurum