Cargotec's January-June 2011 interim report: Second quarter sales grew 25 percent
21/07/2011
CARGOTEC CORPORATION, INTERIM REPORT, 21 JULY 2011 AT 12:30 PM EEST
April-June in brief
· Orders received grew 4 percent and totalled EUR 761 (732) million.
· Order book amounted to EUR 2,306 (31 Dec 2010: 2,356) million at the end of the period.
· Sales grew 25 percent and totalled EUR 795 (638) million.
· Operating profit was EUR 54.0 (37.2) million, representing 6.8 (5.8) percent of sales.
· Cash flow from operating activities before financial items and taxes totalled EUR 35.4 (80.5) million.
· Net income for the period amounted to EUR 42.5 (21.2) million.
· Earnings per share was EUR 0.69 (0.32).
January-June in brief
· Orders received grew 19 percent and totalled EUR 1,580 (1,330) million.
· Sales grew 31 percent to EUR 1,558 (1,193) million.
· Operating profit was EUR 104.6 (50.7) million, representing 6.7 (4.2) percent of sales.
· Cash flow from operating activities before financial items and taxes totalled EUR 71.6 (127.0) million.
· Net income for the period amounted to EUR 78.7 (31.0) million.
· Earnings per share was EUR 1.28 (0.45)
Outlook
Cargotec reiterates its 2011 guidance:
Cargotec's 2011 sales are estimated to grow approximately 20 percent. Healthy first half order intake both in Industrial & Terminal and Marine segments together with the recovery in the market situation support a more positive growth expectation. Sales growth and significant efficiency improvement measures executed during the past years, support profitability, but there is cost pressure on the markets. Cargotec's 2011 operating profit margin is estimated to be approximately 7 percent.
Cargotec key figures
| MEUR | Q2/11 | Q2/10 | Change | Q1-Q2/11 | Q1-Q2/10 | Change | 2010 |
| Orders received | 761 | 732 | 4% | 1,580 | 1,330 | 19% | 2,729 |
| Order book, end of period | 2,306 | 2,433 | -5% | 2,306 | 2,433 | -5% | 2,356 |
| Sales | 795 | 638 | 25% | 1,558 | 1,193 | 31% | 2,575 |
| Operating profit | 54.0 | 37.2 | 45% | 104.6 | 50.7 | 106% | 131.4 |
| Operating profit, % | 6.8 | 5.8 | 6.7 | 4.2 | 5.1 | ||
| Income before taxes | 50.5 | 29.3 | 96.9 | 36.2 | 101.4 | ||
| Cash flow from operating activities | 35.4 | 80.5 | 71.6 | 127.0 | 292.9 | ||
| Net income for the period | 42.5 | 21.2 | 78.7 | 31.0 | 78.0 | ||
| Earnings per share, EUR | 0.69 | 0.32 | 1.28 | 0.45 | 1.21 | ||
| Net debt, end of period | 335 | 308 | 335 | 308 | 171 | ||
| Gearing, % | 31.1 | 32.3 | 31.1 | 32.3 | 16.0 | ||
| Personnel, end of period | 10,925 | 9,607 | 10,925 | 9,607 | 9,954 |
Cargotec's President and CEO Mikael Mäkinen:
"Second quarter order intake shows that market activity has remained favourable. 25 percent sales growth and improved operating profit margin together with order intake support our view on the full year performance. During the first half, we worked intensively on our refined strategy. Our decision to establish a global competence centre for container terminals development in Singapore is an example of actions we are working on. Understanding future customer needs requires an extensive geographic presence and tight collaboration with customers and other stakeholders worldwide. Recently, we received an important recognition from our customer, when Mitsubishi Industries Shimonoseki shipyard gave Marine Offshore business and our Japanese team the Best Supplier 2010 award".
Press conference for analysts and media
A press conference for analysts and media will be combined with a live international telephone conference and arranged on the publishing day at 1:30 pm EEST at Cargotec's head office, Sörnäisten rantatie 23, Helsinki. The event will be held in English. The interim report will be presented by President and CEO Mikael Mäkinen. The presentation material will be available at www.cargotec.com by 1:30 pm EEST.
The telephone conference, during which questions may be presented, can be accessed using the following numbers ten minutes before the beginning of the event: US callers +1 334 323 6201, non-US callers +44 20 7162 0025, access code Cargotec/891231.
The event can also be viewed as a live webcast at www.cargotec.com. On-demand version of the conference will be published at Cargotec's website later during the day.
A replay of the conference call will be available for two days until midnight on 23 July 2011, in the following numbers: US callers +1 954 334 0342, non-US callers +44 20 7031 4064, access code 891231.
For further information, please contact:
Eeva Sipilä, CFO, tel. +358 20 777 4104
Paula Liimatta, IR Manager, tel.+358 20 777 4084
Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 2.6 billion in 2010 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com