Cargotec's January-March 2011 interim report: Order intake continued strong and sales grew 37 percent
28/04/2011
CARGOTEC CORPORATION, INTERIM REPORT, 28 APRIL 2011 AT 8:00 AM EEST
First quarter in brief
· Orders received grew 37 percent and totalled EUR 819 (598) million.
· Order book amounted to EUR 2,373 (31 Dec 2010: 2,356) million at the end of the period.
· Sales grew 37 percent and totalled EUR 763 (555) million.
· Operating profit was EUR 50.6 (13.5) million, representing 6.6 (2.4) percent of sales.
· Cash flow from operating activities before financial items and taxes totalled EUR 36.2 (46.5) million.
· Net income for the period amounted to EUR 36.2 (9.8) million.
· Earnings per share was EUR 0.59 (0.13).
Outlook
Cargotec specifies its 2011 guidance:
Cargotec's 2011 sales are estimated to grow approximately 20 percent. Healthy first quarter order intake both in Industrial & Terminal and Marine segments together with the recovery in the market situation supports 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.
In February, Cargotec's 2011 sales were estimated to grow over 10 percent and 2011 operating margin was estimated to continue to improve.
Cargotec key figures
| Q1 11 | Q1 10 | Change | 2010 | |
| Orders received, MEUR | 819 | 598 | 37 % | 2,729 |
| Order book, MEUR | 2,373 | 2,239 | 6 % | 2,356 |
| Sales, MEUR | 763 | 555 | 37 % | 2,575 |
| Operating profit, MEUR | 50.6 | 13.5 | 275 % | 131.4 |
| Operating profit, % | 6.6 | 2.4 | 5.1 | |
| Income before taxes, MEUR | 46.4 | 6.8 | 101.4 | |
| Cash flow from operating activities, MEUR | 36.2 | 46.5 | 292.9 | |
| Net income for the period, MEUR | 36.2 | 9.8 | 78.0 | |
| Earnings per share, EUR | 0.59 | 0.13 | 1.21 | |
| Net debt, MEUR | 335 | 336 | 171 | |
| Gearing, % | 31.5 | 37.1 | 16.0 | |
| Personnel, end of period | 10,433 | 9,509 | 9,954 |
Cargotec's President and CEO Mikael Mäkinen:
"Market activity for cargo handling solutions has despite the natural catastrophes afflicting the world, strengthened to the extent that we raise our estimated sales growth for 2011 to approximately 20 percent. Our strong order intake for the first quarter confirms our success in the markets. The profitability improvement in Industrial & Terminal compared to the previous quarter is important for us, even if sales were slightly lower. After the regulatory approvals of the Navis acquisition at the end of March, the development of our container terminal segment was started," states Mikael Mäkinen, President and CEO.
New disclosure procedure
Cargotec Corporation is now adopting the new disclosure procedure enabled by Standard 5.2b, published by the Finnish Financial Supervision Authority. This is a summary of Cargotec's January-March 2011 interim report. A complete report with tables is attached as a pdf-file to this release, and is also available on Cargotec's website www.cargotec.com/investors.
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 9:30 am 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 9:30 am 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/891228.
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 30 April 2011, in the following numbers: US callers +1 954 334 0342, non-US callers +44 20 7031 4064, access code 891228.
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 10,500 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com