CARGOTEC CORPORATION, FINANCIAL STATEMENTS REVIEW, 10 FEBRUARY 2015 AT 8.30 AM (EET)

Cargotec's financial statements review 2014: Profit improvement measures enhanced operating profit; Q4 operating profit improved significantly

The figures in this financial statements review are based on Cargotec Corporation's audited 2014 Financial statements.

October-December 2014 in brief

• Orders received decreased 5 percent and totalled EUR 914 (958) million.
• Order book amounted to EUR 2,200 (31 Dec 2013: 1,980) million at the end of the period.
• Sales grew 5 percent to EUR 963 (914) million.
• Operating profit excluding restructuring costs was EUR 71.5 (38.6) million, representing 7.4 (4.2) percent of sales.
• Operating profit was EUR 63.0 (15.3) million, representing 6.5 (1.7) percent of sales.
• Cash flow from operations before financial items and taxes totalled EUR 84.0 (133.9) million.
• Net income for the period amounted to EUR 40.6 (7.7) million.
• Earnings per share was EUR 0.63 (0.12).

January-December 2014 in brief

• Orders received increased 9 percent and totalled EUR 3,599 (3,307) million.
• Sales grew 6 percent to EUR 3,358 (3,181) million.
• Operating profit excluding restructuring costs was EUR 149.3 (126.5) million, representing 4.4 (4.0) percent of sales.
• Operating profit was EUR 126.6 (92.5) million, representing 3.8 (2.9) percent of sales.
• Cash flow from operations before financial items and taxes totalled EUR 204.3 (180.9) million.
• Net income for the period amounted to EUR 72.0 (55.4) million.
• Earnings per share was EUR 1.11 (0.89).
• The Board of Directors proposes a dividend of EUR 0.54 per class A share and EUR 0.55 per class B share be paid.

Outlook for 2015
Cargotec's 2015 sales are expected to grow from 2014 (3,358 MEUR). Operating profit excluding restructuring costs for 2015 is expected to improve from 2014 (149.3 MEUR).

Cargotec's key figures

MEUR	Q4/14	Q4/13	Change	Q1-Q4/14	Q1-Q4/13	Change
Orders received	914	958	-5%	3,599	3,307	9%
Order book, end of period	2,200	1,980	11%	2,200	1,980	11%
Sales	963	914	5%	3,358	3,181	6%
Operating profit excluding restructuring costs	71.5	38.6	85%	149.3	126.5	18%
Operating profit excluding restructuring costs, %	7.4	4.2		4.4	4.0
Operating profit	63.0	15.3	313%	126.6	92.5	37%
Operating profit, %	6.5	1.7		3.8	2.9
Income before taxes	53.4	11.0		98.2	78.7
Cash flow from operations	84.0	133.9		204.3	180.9
Net income for the period	40.6	7.7		72.0	55.4
Earnings per share, EUR	0.63	0.12		1.11	0.89
Net debt, end of period	719	578		719	578
Gearing, %	59.2	46.7		59.2	46.7
Personnel, end of period	10,703	10,610		10,703	10,610

Cargotec's President and CEO Mika Vehviläinen:
Our results for 2014 are a clear indication that our profit improvement programmes have progressed well and that we are implementing the issues defined in our strategy, one step at a time. Both fourth-quarter orders and sales grew on the previous quarter. Operating profit improved across the business areas towards the year-end with the fourth quarter clearly outperforming the previous quarters. I am also delighted with the improvement in cash flow.

Even though the overall financial results for 2014 were below our expectations, I am more convinced that we can meet our future targets. Our market position is strengthened by several successful new product launches. In North America in particular, market activity is expected to continue positive both for Hiab and Kalmar. We face challenging markets in MacGregor, but there is still much room for improvement in our own operations. In 2015, we will continue the profit improvement programmes in Kalmar and Hiab and the development programmes launched in MacGregor in order to improve the business area's profitability over the cycle.

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 10:00 a.m. EET 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 10:00 a.m. EET.

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/950798:
FI: +358 9 2313 9201
SE: +46 8 5052 0110
UK: +44 207 1620 077
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 12 February 2015 in the following numbers: US callers +1 954 334 0342, non-US callers +44 20 7031 4064, access code 950798.

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 3.4 billion in 2014 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki Ltd under symbol CGCBV. www.cargotec.com

Attachment:

• Financial statements review 2014