Cargotec's January-March 2014 interim report: operating profit improved both in Kalmar and Hiab as a result of improvement measures

CARGOTEC CORPORATION, INTERIM REPORT, 29 APRIL 2014 AT 12.00 PM EEST

Cargotec's January-March 2014 interim report: operating profit improved both in Kalmar and Hiab as a result of improvement measures

January-March 2014 in brief

• Orders received increased 9 percent and totalled EUR 863 (791) million.
• Order book amounted to EUR 2,111 (31 Dec 2013: 1,980) million at the end of the period.
• Sales grew 11 percent to EUR 751 (679) million.
• Operating profit excluding restructuring costs was EUR 24.6 (15.0) million, representing 3.3 (2.2) percent of sales.
• Operating profit was EUR 23.8 (13.1) million, representing 3.2 (1.9) percent of sales.
• Cash flow from operations before financial items and taxes totalled EUR 32.5 (21.2) million.
• Net income for the period amounted to EUR 12.9 (6.4) million.
• Earnings per share was EUR 0.20 (0.10).

Outlook for 2014 unchanged
Cargotec's 2014 sales are expected to grow from 2013. Operating profit excluding restructuring costs for 2014 is expected to improve from 2013.

Cargotec's key figures

MEUR	Q1/14	Q1/13	Change	2013
Orders received	863	791	9%	3,307
Order book, end of period	2,111	2,203	-4%	1,980
Sales	751	679	11%	3,181
Operating profit*	24.6	15.0	65%	126.5
Operating profit, %*	3.3	2.2		4.0
Operating profit	23.8	13.1	81%	92.5
Operating profit, %	3.2	1.9		2.9
Income before taxes	18.3	10.8		78.7
Cash flow from operations	32.5	21.2		180.9
Net income for the period	12.9	6.4		55.4
Earnings per share, EUR	0.20	0.10		0.89
Net debt, end of period	824	506		578
Gearing, %	68.1	42.0		46.7
Personnel, end of period	10,883	10,015		10,610

*excluding restructuring costs

Cargotec's President and CEO Mika Vehviläinen:
During the first quarter, market activity was good and especially in MacGregor order intake continued healthy.

We are delighted to note that the EUR 40 million profit improvement programme currently being implemented in both Kalmar and Hiab is beginning to yield positive results. Hiab's first-quarter profitability was at its highest in several years. Kalmar's performance also continued to improve, but we are disappointed with the cost overruns in one ship-to-shore crane project sold in 2012.

MacGregor's operating profit was weak due to low delivery volumes for merchant ships, the relative growth of the offshore business, and acquisition costs. However, we believe that MacGregor's profitability will improve in the forthcoming quarters.

We will continue our determined efforts to improve our profitability and I expect positive results this year.

Press conference for analysts and media
A press conference for analysts and media, combined with a live international telephone conference, will be arranged on the publishing day at 1:30 p.m. EEST at Cargotec's head office, Porkkalankatu 5, Helsinki. The event will be held in English. The report will be presented by President and CEO Mika Vehviläinen and Executive Vice President, CFO Eeva Sipilä. The presentation material will be available at www.cargotec.com by 1:30 p.m. 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 with access code Cargotec/943043:
FI: +358 9 2313 9201
SE: +46 8 5052 0110
UK: +44 20 7162 0077
US: +1 334 323 6201

The event can also be viewed as a live webcast at www.cargotec.com. An 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 until midnight 1 May 2014 in the following numbers: US callers +1 954 334 0342, non-US callers +44 20 7031 4064, access code 943043.

For further information, please contact:
Eeva Sipilä, Executive Vice President and CFO, tel. +358 20 777 4104
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084

Cargotec shapes the cargo handling industry for the benefit of its customers and shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are recognised leaders in cargo and load handling solutions around the world. Their global network is positioned close to customers and offers extensive services that ensure a continuous, reliable and sustainable performance according to customers' needs. Cargotec's sales totalled approximately EUR 3.2 billion and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com

Attachment:

• Cargotec's January-March 2014 interim report, pdf