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Cargotec: Orders Received Increased In All Business Areas

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).

• Strong quarter in all key figures at Kalmar

• Good development in orders received continued at Hiab

• MacGregor’s orders received increased

January-March 2019 in brief: Orders received and sales increased
• Orders received increased by 18 percent and totalled EUR 1,022 (863) million. Orders received grew in all business areas.

• Order book amounted to EUR 2,145 (31 Dec 2018: 1,995) million at the end of the period.

• Sales increased by 11 percent and totalled EUR 856 (773) million.

• Service sales increased by 5 percent and totalled EUR 249 (237) million.

• Service and software sales represented 33 (35) percent of consolidated sales.

• Operating profit was EUR 51.0 (53.2) million, representing 6.0 (6.9) percent of sales.

• Comparable operating profit remained at the comparison period’s level and amounted to EUR 57.4 (57.5) million, representing 6.7 (7.4) percent of sales.

• Cash flow from operations before financial items and taxes totalled EUR 31.0 (-3.7) million.

• Net income for the period amounted to EUR 31.0 (33.7) million.

• Earnings per share was EUR 0.48 (0.52).

Cargotec’s key figures
Cargotec applies the new accounting standard IFRS 16, Leases, and the new interpretation IFRIC 23, Uncertainty over Income Tax Treatments, starting from 1 January 2019. More information on the new 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.

MEUR Q1/19 Q1/18 Change 2018
Orders received 1,022 863 18% 3,756
Service orders received 261 256 2% 1,031
Order book, end of period 2,145 1,684 27% 1,995
Sales 856 773 11% 3,304
Service sales 249 237 5% 980
Software sales* 38 32 18% 147
Service and software sales, 
% of Cargotec’s sales
33% 35% 34%
Operating profit 51.0 53.2 -4% 190.0
Operating profit, % 6.0% 6.9% 5.8%
Comparable operating profit 57.4 57.5 0% 242.1
Comparable operating profit, % 6.7% 7.4% 7.3%
Income before taxes 42.8 46.4 -8% 161.1
Cash flow from operations before financing items and taxes 31.0 -3.7 > 100% 125.8
Net income for the period 31.0 33.7 -8% 108.0
Earnings per share, EUR 0.48 0.52 -8% 1.66
Interest-bearing net debt, end of period 877 575 53% 625
Gearing, % 63.0% 41.5% 43.8%
Interest-bearing net debt / EBITDA** 3.2 2.0 2.3
Return on capital employed 
(ROCE), last 12 months, %
7.8% 9.4% 8.0%
Personnel, end of period 12,194 11,498 6% 11,987

*Software sales include Navis business unit and automation software
**Last 12 months’ EBITDA

Cargotec’s CEO Mika Vehviläinen: Strong development in orders received continued
The demand for Cargotec’s load handling solutions continued to be strong during the first quarter of 2019. Orders received grew in total by 18 percent compared to the comparison period, and the growth was evenly spread between all of our business areas. Sales developed favourably as well, increasing by 11 percent.

Our comparable operating profit remained at the comparison period’s level. Kalmar’s profitability improvement was driven by higher sales. The sales grew also in Hiab, but especially the challenges in the supply chain led to a decline in the comparable operating profit compared to the first quarter of 2018. We continued our efforts to solve these issues, and believe that Hiab’s performance will improve during the second half of 2019. Despite the increase in MacGregor’s orders received, the market situation remains difficult. Nevertheless, MacGregor’s comparable operating profit remained positive.

The development in our service and software business was good during the first quarter. Service sales grew by five percent and software sales by 18 percent. During the quarter, we strengthened our software offering by acquiring the US-based Cetus Labs, Inc., which offers a cloud-based Octopi terminal operating system (TOS) for small container and mixed cargo terminals. With the addition of Octopi to its software portfolio, Navis is better positioned to support thousands of smaller terminals around the world that are eager to modernise their terminal operations, yet lack the technology infrastructure or technical expertise required to support a full-scale Navis N4 TOS deployment. Service and software sales constituted around one third of our sales. Our target is to increase the annual sales of our service and software business to 1.5 billion euros.

Full Report

Source: Cargotec

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