2009-10-22 12:00:00 CEST
2009-10-22 12:06:21 CEST
REGULATED INFORMATION
Cargotec - Interim report (Q1 and Q3)
Cargotec's Interim Report January-September 2009 - Demand unchanged
Cargotec Corporation INTERIM REPORT 22 October 2009 at 1.00 pm EEST
Cargotec's Interim Report January-September 2009 - Demand unchanged
Report Highlights - January-September
* Orders received totalled EUR 1,364 (1-9/2008: 3,136)
million.
* Order book was EUR 2,371 (31.12.2008: 3,054) million at
the end of the reporting period.
* Sales declined 23 percent and were EUR 1,912 (1-9/2008:
2,476) million.
* Operating profit excluding restructuring costs was EUR
29.6 (156.9) million, representing 1.5 (6.3) percent of sales.
* Operating result was EUR -7.1 (156.9) million. Operating
result includes EUR 36.7 (0.0) million of restructuring costs.
* Cash flow from operating activities before financial items
and taxes totalled EUR 198.7 (158.1) million.
* Net income for the period amounted to EUR -5.9 (111.9)
million.
* Earnings per share was EUR -0.13 (1.77).
Report Highlights - third quarter
* Orders received totalled EUR 437 (7-9/2008: 967) million.
* Sales declined 34 percent and were EUR 559 (848) million.
* Operating profit excluding restructuring costs was EUR
11.6 (49.6) million, representing 2.1 (5.8) percent of sales.
* Operating result was EUR -3.3 (49.6) million. Operating
result includes EUR 14.9 (0.0) million of restructuring costs.
Cargotec's President and CEO Mikael Mäkinen:"We have initiated significant structural changes and restructuring
measures in order to improve efficiency and competitiveness. I am
very satisfied with the commitment of our organisation to the change,
although we have had to make tough decisions to adjust our cost
structure. The cost savings are already beginning to improve our
profitability. The current weak demand for cargo handling equipment
is something we cannot impact, but with the restructuring, we are
stronger than ever when the market recovers", states President and
CEO Mikael Mäkinen.
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 4.00 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 on
www.cargotec.com by 4.00 pm (EEST).
The telephone conference, during which questions may be presented,
may be accessed at the following numbers ten minutes before the
beginning of the event: US callers +1 646 843 4608, non-US callers
+44 20 3023 4412, access code Cargotec Corporation.
The event can also be viewed as a live webcast at www.cargotec.com.
An on-demand audiocast of the conference will be published on
Cargotec's website later during the day.
A replay of the conference call will be available until 5.00 pm 24
October 2009 (EEST), in the following numbers: US callers +1 866 583
1035, non-US callers +44 20 8196 1998, access code 136498#.
For further information, please contact:
Eeva Sipilä, CFO, tel. +358 204 55 4281
Paula Liimatta, IR Manager, tel.+358 204 55 4634
Cargotec improves the efficiency of cargo flows by offering solutions
for the loading and unloading of goods on land and at sea - wherever
cargo is on the move. Cargotec's main daughter brands for cargo
handling Hiab, Kalmar and MacGregor are global market leaders in
their fields. Cargotec's global network offers extensive services
that ensure the continuous, reliable and sustainable performance of
equipment. Cargotec's sales totalled EUR 3.4 billion in 2008 and it
employs approximately 10,500 people. Cargotec's class B shares are
quoted on the NASDAQ OMX Helsinki. www.cargotec.com
Operating environment
Demand for load handling equipment remained weak, significantly
affected by the marked fall in construction and new truck sales.
Market seasonality in the third quarter slightly weakened demand
compared to the previous quarters. With their fleets under-utilised,
customers are postponing investment decisions in the uncertain
economic situation. In some markets low demand comes through as price
competition between equipment manufacturers.
A clear drop in the number of containers handled in ports has
prompted customers to reappraise investments in container handling
equipment. Port customers' demand for container handling equipment
was weak during the third quarter. Activity in the markets with
respect to investment projects underway and some currently under
planning still failed to feed through into orders. However, due to
publicly funded infrastructure projects, the Asia Pacific market area
saw greater levels of activity than elsewhere in the world. Demand
for forklift trucks and terminal tractors was lower than in the
previous year due to lower industrial production and distribution
centre activity.
The markets for marine cargo handling equipment have contracted
sharply, following the end of the ship ordering boom of the last few
years although slight positivity was visible in the offshore
equipment market towards the end of the third quarter. Overcapacity
in shipping has led to idling of vessels, their use for storage
purposes and increased scrapping. Nevertheless, cancellations of
orders for marine cargo handling equipment have so far remained at
moderate levels.
Partly idle equipment lowered demand for services. Lower cargo
handling equipment utilisation rates also affected spare parts sales.
However, the services markets are in better shape than the equipment
markets. While customers remain interested in more flexible operating
models, they are slower to make the related decisions.
Orders Received
Orders received in January-September totalled EUR 1,364 (3,136)
million. The number of orders received fell significantly in all
business areas, due to economic weakness. It should also be noted
that the order intake during the comparison period 2008 was
record-high in both Kalmar and MacGregor. The value of the orders
secured during the third quarter was EUR 437 (967) million.
+-------------------------------------------------------------------------+
|MEUR |1-9/2009|Share, %|1-9/2008|Share, %|Change, %|1-12/2008|
|-----------------+--------+--------+--------+--------+---------+---------|
|Hiab | 382| 28| 661| 21| -42| 818|
|-----------------+--------+--------+--------+--------+---------+---------|
|Kalmar | 576| 42| 1,217| 39| -53| 1,566|
|-----------------+--------+--------+--------+--------+---------+---------|
|MacGregor | 409| 30| 1,264| 40| -68| 1,393|
|-----------------+--------+--------+--------+--------+---------+---------|
|Internal orders | -2| | -7| | | -9|
|-----------------+--------+--------+--------+--------+---------+---------|
|Total | 1,364| 100| 3,136| 100| -56| 3,769|
+-------------------------------------------------------------------------+
Hiab
Of total orders received in January-September, Hiab accounted for EUR
382 (661) million while its share of orders received in during the
third quarter was EUR 114 (194) million. Orders received during the
third quarter were on a slightly lower level than in the second
quarter, which is typical seasonality in the business.
Major part of the orders Hiab secured were small individual orders,
which is representative of its operations. The number of orders
received continued to decline from the previous year, due to low
demand especially in construction-related customer segments.
In May, Hiab received an order for 60 loader cranes and 39 hooklifts
for trucks supplied to the Finnish Defence Forces. Delivery of the
equipment began during the third quarter of 2009.
In February, Hiab received a major order for 292 loader cranes from
BAE Systems Inc. in the US. Delivery of the equipment started during
the first quarter and will continue throughout the year. This order
follows the contract received in September 2008.
Kalmar
Of total orders received in January-September, Kalmar accounted for
EUR 576 (1,217) million while its share of orders received in during
the third quarter was EUR 164 (365) million. The uncertainty in the
container handling markets reflected in customers' investment
decisions lengthening decision-making processes. The lower usage
rates of container handling equipment reduced replacement
investments.
During the third quarter, Saigon Newport Company awarded Kalmar a
contract for six all-electric E-One rubber-tyred gantry cranes (RTG).
The equipment will be delivered to Tan Cang-Cai Mep International
Container port during the first quarter of 2010. Kalmar also received
an order for seven reachstackers from NorSea. This equipment will
include special attachments for handling pipes and will be delivered
in January 2010. The order also includes a service agreement.
During the second quarter, Kalmar received two ship-to-shore crane
(STS) orders from Latin America. The crane deliveries, one for Port
Autonome de la Guadeloupe in Guadeloupe and one for Pinfra's
subsidiary, Infrastructura Portuaria Mexicana in Altamira, Mexico,
are scheduled for the last quarter of 2010. Kalmar also received an
order for three E-One rubber-tyred gantry cranes (RTG) from Liscont
Operadores de Contentores, SA in Lisbon, Portugal. The equipment will
be delivered to the Liscont Container Terminal at Alcântara during
the first half of 2010. In addition, Kalmar secured a contract with
Thessaloniki Port Authority in Greece for seven forklift trucks which
were delivered by the end of June 2009. Furthermore, an order for 46
rough terrain container handlers was received from Tank-Automotive
Armament Command (TACOM), which is part of the US Department of
Defence. The equipment will be manufactured at Cargotec's new factory
in Texas, US, during 2010-2011. The order is continuation to an order
for 62 rough terrain container handlers received during the first
quarter.
During the first quarter, Kalmar signed a contract to provide 20
shuttle carriers to TTI Algeciras S.A. in Spain. The equipment will
be delivered by January 2010. In addition, Kalmar received an order
for reachstackers and heavy range terminal tractors from Vestas
Towers in the US. The equipment will be used to lift wind turbine
tower sectors and will be customised with special attachments. This
equipment was delivered during the second quarter.
During the first quarter, Kalmar also received terminal tractor
orders from, for example, China, Tunis and Russia. A total of 50
medium range terminal tractors will be delivered to the port of
Ningbo, China. A total of 20 heavy range terminal tractors will be
delivered to the port of Sociate Tunisienne De Acconage, Tunis and 15
terminal tractors to the port of Novorossiisk Commercial Sea, Russia.
In March, Cargotec Port Security, which is part of Kalmar, won its
first commercial contract for a spreader-mounted radiation detection
system from US based Lockheed Martin. The system meets the
requirements of US immigration officials.
MacGregor
Of total orders received in January-September, MacGregor accounted
for EUR 409 (1,264) million while its share of orders received during
the third quarter was EUR 158 (411) million. The drop in orders
received reflected the exceptional ship order boom strongly slowing
down. However, other market participants' delivery problems had a
positive impact as shipyards aim to secure schedules of their
projects with help from MacGregor.
During the third quarter, MacGregor received orders for four cranes.
An active heave compensated offshore crane will be delivered to a UScustomer during early 2010. In addition, two knuckle-jib ship cranes
will be delivered and installed for a researched vessel under
construction at a Russian shipyard during 2010 and one ship crane for
an offshore vessel under construction at Halifax Shipyard, Canada, in
early 2010.
During the third quarter, MacGregor also received an order from the
German Flensburger Schiffbau Gesellschaft for RoRo equipment for
seven vessels destined for UK and Turkish operations. This contact
includes the design, production and installation of the equipment.
The equipment will be delivered and installed between 2011 and 2013.
In addition, an order was received for six ship cranes from STX
Europe. These cranes with delivery in 2010-2011are designed to
operate in severe climatic conditions and extreme air temperatures
and will be installed on three icebreaker tugs. In August, MacGregor
signed an order for hatch covers to be delivered for two new
generation heavy duty ships under construction at Sietas
Schiffahrskontor Altes Land Shipyard in Germany. This equipment will
be delivered in 2010-2011. Moreover, in July, MacGregor won an order
for a ship unloader for handling coal from UTE Porto do Itaqui
Geracão de Energia SA, Brazil. The contract includes spare parts,
supervision of installation, start-up, testing and training. This
equipment will enter service at the end of 2010.
During the second quarter, MacGregor won cargo handling crane and
hatch cover orders for container ships and bulk carriers. Orders for
hatch covers to be installed on 10 bulk carriers were received from
Sungdong Shipbuilding & Marine Engineering in South Korea. The
equipment will be delivered in 2010. Hatch covers for 32 container
ships under construction in Japan and South Korea will be delivered
during 2010-2012. This order includes the design and key components
for the hatch covers. An order was received for the supply of cargo
handling cranes and hatch covers for six container ships under
construction at Chinese shipyard Rongcheng Shenfei Shipbuilding Co
Ltd. The scope of supply for each vessel includes five cranes and the
design of, and key components for, hatch covers. The equipment will
be delivered in 2010-2012.
In addition, an order was received for 96 cargo handling cranes
destined for 24 bulk carriers at ABG Shipyard Ltd in India, for Asian
and European owners. Delivery of the cranes is planned to start at
the end of 2009 and continue until mid 2013. Futhermore, in May,
MacGregor received orders for RoRo equipment from French Compagnie
Meridionale de Navigation and the French Navy.
During the second quarter, MacGregor also won an order for two twin
boom level luffing cargo handling cranes from the US Navy. Along with
the delivery of the new cranes, the order includes the removal and
disposal of the existing cranes, the refurbishment of existing boom
stands and crane bases, as well as providing preparatory work for a
crane stabilisation system. The cranes are expected to be operational
by March 2011.
During the first quarter, MacGregor received significant orders to
deliver linkspans to Jordan, Morocco and Ireland. The equipment will
be delivered at the end of 2009 and at the beginning of 2010.
MacGregor linkspan technology is tailored to suit a particular port's
specific circumstances.
In March, MacGregor won a contract to deliver specially-designed RoRo
equipment to two logistic support vessels from the Australian Navy.
The equipment will be delivered in 2010 and 2011.
In March, MacGregor also received an order for 28 hose handling and
provision cranes from Korean shipyard Daewoo Shipbuilding & Marine
Engineering Co. The cranes are destined for five very large crude
carriers and two liquid natural gas carriers and they will be
delivered during 2010 and 2012.
In February, Japanese Taiheiyo Engineering ordered MacGregor
selfunloading systems to be installed on two coastal cement carriers
guaranteeing high capacity cargo discharging, low power consumption
and high reliability. Close co-operation with the company for many
years resulted to the order. The equipment will be delivered in 2010.
Cargotec Services
The general economic slowdown also affected activity in the services
market, but to a smaller extent than in the equipment market.
Although a large number of small contracts typical of the services
business were signed, customers are delaying decision-making related
to major contracts.
During the third quarter, Sociate Tunisienne De Acconage, Tunis
placed an order for refurbishing 13 straddle carriers. Under the
refurbishment programme, each of the straddle carriers will be
assessed individually and major repairs identified, prioritised and
done according to need later this year.
During the first quarter, a five-year equipment servicing and
maintenance contract was signed with the Durres Port Authority in
Albania. In addition to equipment servicing and maintenance, contract
includes the management of the parts inventory.
Order Book
Order book totalled EUR 2,371 (31 December 2008: 3,054) million on 30
September 2009. Of the total order book, Hiab accounted for EUR 127
(164) million, Kalmar EUR 459 (704) million and MacGregor EUR 1,785
(2,187) million. Order cancellations booked in MacGregor in
January-September totalled EUR 125 million.
+-------------------------------------------------------------------+
| MEUR | 30.9.2009 | Share, | 31.12.2008 | Share, | Change, |
| | | % | | % | % |
|--------------+-----------+--------+------------+--------+---------|
| Hiab | 127 | 5 | 164 | 5 | -23 |
|--------------+-----------+--------+------------+--------+---------|
| Kalmar | 459 | 19 | 704 | 23 | -35 |
|--------------+-----------+--------+------------+--------+---------|
| MacGregor | 1,785 | 75 | 2,187 | 72 | -18 |
|--------------+-----------+--------+------------+--------+---------|
| Internal | 0 | | -1 | | |
| order book | | | | | |
|--------------+-----------+--------+------------+--------+---------|
| Total | 2,371 | 100 | 3,054 | 100 | -22 |
+-------------------------------------------------------------------+
Sales
January-September sales totalled EUR 1,912 (2,476) million. Sales
declined 23 percent from the previous year. Only deliveries of marine
cargo handling equipment grew from the previous year. Sales for the
third quarter were EUR 559 (848) million.
+-------------------------------------------------------------------------+
|MEUR | 1-9/2009|Share, %| 1-9/2008|Share, %|Change, %| 1-12/2008|
|-----------+----------+--------+----------+--------+---------+-----------|
|Hiab | 416| 22| 691| 28| -40| 907|
|-----------+----------+--------+----------+--------+---------+-----------|
|Kalmar | 795| 42| 1,103| 44| -28| 1,515|
|-----------+----------+--------+----------+--------+---------+-----------|
|MacGregor | 704| 37| 687| 28| 2| 985|
|-----------+----------+--------+----------+--------+---------+-----------|
|Internal | -3| | -6| | | -8|
|sales | | | | | | |
|-----------+----------+--------+----------+--------+---------+-----------|
|Total | 1,912| 100| 2,476| 100| -23| 3,399|
+-------------------------------------------------------------------------+
Hiab's sales declined to EUR 416 (691) million in January-September.
Third quarter sales were EUR 124 (209) million. This decline is
attributable to the low order intake. The low sales volume reflects
the general weakness in the load handling equipment market and
customers' lack of willingness to invest.
Kalmar's January-September sales totalled EUR 795 (1,103) million, of
which EUR 207 (386) million was attributable to the third quarter.
Delivery volumes were healthy in the first half, thanks to the high
order book at the beginning of the year, but due to the slowdown in
the markets have since declined.
MacGregor's sales development was favourable in January-September
totalling EUR 704 (687) million. The sales growth is the result of
the strong order intake in previous years and successful project
deliveries. Third quarter sales was EUR 229 (256) million.
Sales from services amounted to EUR 523 (639) million in
January-September, representing 27 (26) percent of total sales. Sales
from services declined 18 percent from the comparison period level,
which is a consequence of lower demand in all areas of services
business. Services accounted for 31 (23) percent of the
January-September sales at Hiab, 31 (29) percent at Kalmar and 21
(23) percent at MacGregor.
Financial Result
January-September operating result totalled EUR -7.1 (156.9) million.
The operating result includes EUR 36.7 (0.0) million of restructuring
costs.
Operating profit for January-September excluding restructuring costs
was EUR 29.6 (156.9) million, representing 1.5 (6.3) percent of
sales. The operating profit includes a EUR 3.8 (4.9) million cost
impact for the purchase price allocation treatment of acquisitions
and EUR 8.6 (4.8) million costs from the On the Move change
programme.
Operating result in Hiab and Kalmar was eroded by low production
capacity utilisation. During the first half of the year, product
profitability of deliveries was weakened by material costs, which
were still at previous high price levels. However, towards the end of
the reporting period, the decrease in material prices began to impact
positively. MacGregor's profitability continued to improve during the
third quarter.
Third quarter operating result totalled EUR -3.3 (49.6) million.
Operating result includes EUR 14.9 (0.0) million of restructuring
costs. Operating profit for the third quarter excluding restructuring
costs was EUR 11.6 (49.6) million, representing 2.1 (5.8) percent of
sales.
The lag in the realisation of cost savings from major restructuring
activities led to such savings being insufficient to offset the
impact on profit of plummeting demand. The already completed and
ongoing restructuring initiatives including structural capacity
adjustment measures are estimated to create total annual cost savings
exceeding EUR 150 million. The savings estimate includes all cost
structure streamlining actions announced since the beginning of 2008.
Net income for January-September was EUR -5.9 (111.9) million and
earnings per share EUR -0.13 (1.77).
Balance Sheet, Financing and Cash Flow
On 30 September 2009, net working capital decreased to EUR 179 (31
December 2008: 324) million. This fall was due to shrunken component
and materials inventories and lower receivables. In addition, at the
turn of the year the balance sheet showed a significant amount of
work-in-progress, which healthy early-year delivery volumes within
Kalmar and MacGregor has reduced. Tangible assets on the balance
sheet were EUR 297 (284) million and intangible assets EUR 787 (754)
million.
Cash flow from operating activities before financial items and taxes
for January-September was EUR 198.7 (158.1) million. The dividend
payment totalled EUR 37.4 (65.9) million.
Net debt on 30 September was EUR 400 (31 December 2008: 478) million,
including EUR 619 (565) million in interest-bearing debt. The total
equity/total assets ratio was 36.6 (33.0) percent while gearing was
45.9 (55.3) percent.
Cargotec's financing structure is healthy. Interest-bearing debt
consists mainly of long-term corporate bonds maturing from the year
2012. Cargotec had EUR 585 million of unused long-term credit
facilities at the end of the reporting period.
In order to strengthen its financial structure, Cargotec raised a
total of EUR 100 million as five-year Pension Premium Loans (TyEL) in
March and June 2009.
Return on equity for January-September was -0.9 (16.8) percent and
return on capital employed was -0.5 (15.3) percent.
New Products and Product Development
Research and product development expenditure for January-September
was EUR 27.5 (33.3) million, representing 1.4 (1.3) percent of sales.
Despite the weakened market situation, Cargotec continues to invest
in product development.
Hiab introduced several new products in the small crane product
family. In addition, Hiab launched the first stiff boom crane for the
Chinese market. Furthermore, a new 30-tonne demountable and three new
hooklifts were introduced in Hiab's demountable product family.
During the reporting period, Kalmar introduced an electrical shuttle
carrier. With this new technology, the equipment features reduced
fuel consumption and lower emissions. All-electric rubber-tyred
gantry crane (RTG) was further improved with several safety and
environmental features. Additionally, three new hybrid terminal
tractors for technology trials were supplied to the Port of Long
Beach, US. Kalmar also launched a customised intelligent platform for
management of container handling equipment fleet in ports and
terminals.
In January Kalmar launched a new heavy range terminal tractor for
LoLo (lift-on, lift-off) operations. The tractor has been designed in
close co-operation with customers and it meets the strictest
requirements for ergonomics and driveability, power and economy as
well as environmental friendliness.
During the first half, Kalmar automatic stacking crane system
development concerning the performance testing was finalised in
Hamburg CTB terminal. The automatic stacking crane meets German
requirements for security systems. Integration testing with
customer's terminal system is ongoing.
Kalmar has prepared commencement of ship-to-shore crane production in
Asia. At the same time, Kalmar has changed its cranes so that it is
easier to make the final assembly on the customer's site. This makes
the transportation simpler and less expensive. New Kalmar
ship-to-shore cranes will be delivered with a new crane control
system that includes the crane's control, crane management and fault
diagnostics.
In May, MacGregor introduced an innovative ultra-deepwater lifting
system, which includes a side-mounted hang-off frame for transfer of
loads from a steel-rope winch fitted standard crane to vertically
suspended fibre ropes. The development is continuation to the January
delivery of the first subsea knuckle-jib crane equipped with an
option for fibre rope handling. Technology for handling lightweight
fibre rope rather than traditional steel wire rope offers several
advantages: much heavier loads can be handled without strain to the
crane at unlimited depths and consequently, overall safety is
improved due to the lighter equipment which still can carry out heavy
work operations.
Capital Expenditure
Capital expenditure for January-September, excluding acquisitions and
customer financing, totalled EUR 63.7 (47.1) million. Investments in
customer financing were EUR 16.2 (26.0) million.
Cargotec made the decision to proceed with an investment plan for a
multi-assembly unit (MAU) in Stargard Szczecinski in Northern Poland,
to improve its global supply footprint. The new MAU in Stargard
Szczecinski is planned to support the production of a wide range of
Cargotec equipment. Production began in rented premises at the end of
the reporting period. Production start in own premises on the new
site is planned for the second quarter of 2010. The estimated cash
flow impact of the investment cost in 2009 will be close to EUR 20
million, of which EUR 10 million incurred during the reporting
period.
The expansion of container spreader production capacity in Malaysia
continued during the reporting period. The new factory for rough
terrain container handlers in Texas, USA, started production. In
addition, the capacity expansion investment in Narva, Estonia and the
doubling of production capacity in Shanghai, China, were finalised
during the first half of 2009.
On the Move Change Programme
In January 2008, Cargotec announced the launch of an extensive On the
Move change programme. The change programme aims to form a basis for
profitable growth through improved customer focus and efficiency. Of
the estimated EUR 80-100 million savings target from On the Move
change programme, half results from non-volume related cost structure
adjustments and supply set-up changes and has been included in the
overall cost savings estimate exceeding EUR 150 million.
Materialisation of the volume related other half of the original On
the Move savings target requires improvement in the market situation.
The projects in the first phase focused on streamlining support
functions and company structure as well as initiating IM projects
that improve efficiency. These projects continue and changes in
company structure will to a large extent be finalised during the
year.
The implementation of the programme continues with the launch of a
new governance model for management and organisation. There are three
key functions: solutions, supply and support that develop Cargotec's
processes across business area boundaries.
At the beginning of 2009, Cargotec established a common Supply
organisation, which is responsible for sourcing and supply and which
is developing global supply closer to customers as well as towards
lower cost environments. During 2009, Cargotec will implement a
significant change in its supply footprint. In 2008, the decision was
taken to close a factory in the USA and Finland. In addition, similar
decisions were taken during the period under review, affecting
factories in the Netherlands and Sweden. As a consequence of these
factory closures and in order to enhance efficiency, the operations
and capacity utilisation of the remaining factories will be
developed.
As a part of the On the Move change programme, Cargotec is merging
Hiab and Kalmar business areas globally. The new business area,
Industrial and Terminal, comprising Hiab and Kalmar business areas,
started operating at the beginning of October. The new Industrial and
Terminal organisation includes Product Solutions, charged with
ensuring the competitiveness of the global product offering, Service
Solutions with responsibility for ensuring the competitiveness of the
global service offering and three regional organisations with
responsibility for sales and service: Americas, Asia-Pacific and
EMEA.
Acquisitions
During the period, Cargotec acquired the assets of a Danish sales and
services company Arne Holst & Co. A/S. The acquisition includes the
takeover of business assets and customer contacts as well as the
transfer of four employees to Cargotec. In addition, Cargotec
acquired an 18 percent minority of Kalmar España S.A. as well as a 20
percent minority of Italian Officine Cargotec Ferrari Genova S.r.l
and Officine Cargotec Ferrari Prato S.r.l. After these transactions
Cargotec owns all the shares of the companies.
Personnel
On 30 September 2009, Cargotec employed 10,409 (12,000) people. Hiab
employed 3,519 (4,508) people, Kalmar 4,096 (4,777), and MacGregor
2,490 (2,548). The average number of employees during the reporting
period was 11,184 (11,716). The number of personnel in corporate
level support functions has increased due to the establishment of
Cargotec's shared service centre as well as common supply and country
organisations.
Of Cargotec's total employees, 18 (20) percent were located in
Sweden, 12 (13) percent in Finland and 31 (30) percent in the rest of
Europe. North and South American personnel represented 11 (11)
percent, Asia Pacific 26 (24) percent and the rest of the world 2 (2)
percent of total employees.
As a result of the restructuring measures initiated in September
2008, the number of personnel decreased by 910 by the end of
September 2009: by 601 in Hiab, by 299 in Kalmar, and by 10 in
corporate functions. These restructuring measures will lead to a
total personnel reduction of 960.
Restructuring measures have continued in 2009 in order to develop the
company's internal structural and as market conditions remained weak.
These restructuring measures are estimated to affect some 1,700
people globally. As of end of September, 1,104 persons had left as a
result of these measures: 483 in Hiab, 495 in Kalmar and 126 in
MacGregor.
Furthermore, a significant number of temporary lay-offs have been
agreed on in several locations.
Changes in the organisation and management
In June 2009, Cargotec announced the merger of Hiab and Kalmar
business areas. As a result, two business areas were formed: Marine,
comprising current MacGregor business area, and Industrial and
Terminal, which comprises current Hiab and Kalmar business areas.
Olli Isotalo continues to head the Marine business while Pekka
Vauramo heads the Industrial and Terminal business. Pekka Vauramo
continues in his role as Deputy to CEO. External financial reporting
will continue unchanged until end of 2009. As of 1 January 2010,
Cargotec will report in two primary segments Industrial and Terminal
and Marine while the three regions EMEA, Americas and APAC will
continue as secondary segments.
The new Industrial and Terminal organisation includes Product
Solutions, charged with ensuring the competitiveness of the global
product offering, Service Solutions with responsibility for ensuring
the competitiveness of the global service offering and three regional
organisations with responsibility for sales and service: Americas,
Asia-Pacific and EMEA.
Unto Ahtola was appointed Executive Vice President, Product
Solutions, and a member to Cargotec's Executive Board. He will join
Cargotec on 2 November 2009. Stefan Gleuel, formerly Senior Vice
President, MacGregor Service Division, was appointed Executive Vice
President, Service Solutions as of 1 October 2009, and a member to
Cargotec's Executive Board.
Harald de Graaf was appointed Executive Vice President, EMEA, as of 1
July 2009. In addition, de Graaf will continue to be responsible for
Corporate Development and remain a member of Cargotec Executive
Board. Ken Loh was appointed Executive Vice President, Asia-Pacific
and a member of Cargotec's Executive Board as of 1 October 2009. Mr
Loh's previous post was President, Kalmar APAC Region. As of 1
October 2009, Lennart Brelin was appointed Executive Vice President,
Americas and a member of Cargotec's Executive Board. Lennart Brelin
worked previously as Senior Vice President, Hiab Americas region.
Kirsi Nuotto, a member of Cargotec's Executive Board, was appointed
Executive Vice President, Human Resources and Communications as of 1
July 2009.
New branding strategy
Cargotec has defined a new corporate-wide branding strategy and
launched a new visual look, aimed at strengthening the Cargotec name
and its main strategic brands Hiab, Kalmar and MacGregor. The new
brand strategy supports Cargotec's 'One Company' approach and is
built on the strong reputation of its market- leading brands.
Cargotec's visibility is more prominent in the common new visual
identity of all of these brands. They all share a common symbol, the
elephant. The Cargotec elephant will be displayed on most materials
together with the three main brands, Hiab, Kalmar and MacGregor.
These three brands all have a strong reputation within Cargotec's
customer base and, also in the future, the products will be branded
with these names.
Annual General Meeting
Decision Taken at Cargotec Corporation's Annual General Meeting
Cargotec Corporation's Annual General Meeting was held on 5 March
2009 in Helsinki. The AGM approved the financial statements and
consolidated financial statements and granted discharge from
liability to the President and CEO and the members of the Board of
Directors for the accounting period 1 January -31 December 2008.
The AGM approved a dividend of EUR 0.59 per each of class A shares
and EUR 0.60 per each of class B shares outstanding to be paid.
The number of the members of the Board of Directors was confirmed at
six. Tapio Hakakari, Ilkka Herlin, Peter Immonen, Karri Kaitue and
Antti Lagerroos were re-elected to the Board of Directors. Anja
Silvennoinen was elected as a new member to the Board of Directors.
The meeting decided that a yearly remuneration of EUR 80,000 be paid
for the Chairman, EUR 55,000 for the Deputy Chairman and EUR 40,000
for the other Board members. In addition, it was decided that members
receive EUR 500 for attendance at Board and Committee meetings and
that 30 percent of the yearly remuneration will be paid in Cargotec
Corporation's class B shares and the rest in money.
Authorised public accountants Johan Kronberg and
PricewaterhouseCoopers Ltd were re-elected as auditors.
Authorisations Granted by the Annual General Meeting
The AGM authorised the Board of Directors to decide on purchasing of
own shares with non-restricted equity. The shares may be repurchased
in order to develop the capital structure of the Company, finance or
carry out possible acquisitions, implement the Company's share-based
incentive plans, or to be transferred for other purposes or to be
cancelled. Altogether no more than 6,400,000 own shares may be
repurchased, of which no more than 952,000 are class A shares and
5,448,000 are class B class. The above mentioned amounts include the
class B shares repurchased during 2005-2008 already in the Company's
possession, of which there are currently 2,990,725 such class B
shares.
In addition, the AGM authorised the Board to decide on issuance of a
maximum of 6,400,000 treasury shares, of which no more than 952,000
are class A shares and 5,448,000 are class B shares, in one or more
lots. The share issue can be directed and it is to be used to as
compensation in acquisitions and in other arrangements, to finance
acquisitions or for personnel incentive purposes. Both authorisations
shall remain in effect for a period of 18 months from date of
decision of the AGM.
Organisation of the Board of Directors
The Board of Directors elected Ilkka Herlin to continue as Chairman
of the Board. Tapio Hakakari was elected as Deputy Chairman.
Cargotec's Senior Executive Vice President Kari Heinistö continues to
act as secretary of the Board of Directors.
The Board of Directors decided that the Audit Committee and
Nomination and Compensation Committee continue to assist the Board in
its work. The Board of Directors elected among its members Ilkka
Herlin, Karri Kaitue (chairman) and Anja Silvennoinen as members of
the Audit Committee. Tapio Hakakari, Ilkka Herlin (chairman), Peter
Immonen and Antti Lagerroos were elected to the Nomination and
Compensation Committee.
Shares and trading
Share Capital
Cargotec's share capital on 30 September 2009 totalled EUR
64,304,880. The share capital increased by EUR 600 due to share
subscriptions with Cargotec 2005B option rights during the reporting
period. On 30 September 2009, the number of class B shares listed on
the NASDAQ OMX Helsinki was 54,778,791 while that of unlisted class A
shares totalled 9,526,089.
Own shares
Cargotec held a total of 2,959,487 Company's own class B shares on 30
September 2009. The shares were repurchased in 2005-2008.
The Board of Directors decided to exercise the authorisation of the
Annual General Meeting on 5 March 2009, to acquire the Company's own
shares. In accordance with the authorisation the shares will be
repurchased in order to develop the capital structure of the Company,
finance or carry out possible acquisitions, implement the Company's
share-based incentive plans, or to be transferred for other purposes
or to be cancelled. No own shares were repurchased during the
reporting period.
Share Ownership Plan - Issue of Own Shares as Reward Payment
The Board of Directors decided on 5 March 2009 on a directed bonus
issue of 31,356 class B shares owned by the Company to the 61
participants of the Company's share-based incentive programme as
reward payment for the earnings period 2007-2008. A total of 118
class B shares were returned to the Company, entailing a directed
bonus issue of 31,238 class B shares. Subsequent to this bonus issue,
Cargotec holds a total of 2,959,487 Company's own class B shares. The
decision of the directed bonus issue is based on the authorisation of
the Annual General Meeting of Shareholders held on 5 March 2009. The
maximum amount to be paid out as shares from the incentive programme
during 2007-2011 is 387,500 class B shares.
Option Rights
The Company has no valid option programme. The subscription period
with 2005B option rights ended 31 March 2009. A total of 333,570
Cargotec class B shares were subscribed with 2005B option rights
during the subscription period. After the end of the subscription
period, the unused option rights became null and void and have been
removed from their holders' book-entry accounts.
Market Capitalisation and Trading
On 30 September 2009, the total market value of class B shares was
EUR 833 million, excluding treasury shares held by the Company. The
period-end market capitalisation, in which unlisted class A shares
are valued at the average price of class B shares on the last trading
day of the reporting period, was EUR 989 million, excluding treasury
shares held by the Company.
The closing price of class B shares on 30 September 2009 was EUR
16.08. The average share price for January-September was EUR 10.19
the highest quotation being EUR 16.98 and the lowest EUR 6.37. In
January-September, approximately 43 million class B shares were
traded on the NASDAQ OMX Helsinki, corresponding to a turnover of
approximately EUR 436 million.
Short-term Risks and Uncertainties
The continued weakness in the world economy creates significant
short-term risks and uncertainties for Cargotec's operations. The
uncertainty is due to the possible effects of this weakness on demand
for Cargotec's products and services and on the willingness of
Cargotec's customers to invest.
The weak market situation and credit crunch may see the further
postponement of investment decisions, or the cancellation or
postponement of orders. Furthermore, customers' financial situations
will affect the collection of receivables and the level of credit
loss. The weak market situation is also burdening suppliers and
sub-contractors, which may have a knock-on effect on Cargotec's
supply chain.
Cargotec still estimates that around 20 percent of MacGregor's order
book at the beginning of 2009 involves a risk of cancellation.
Following order cancellations of EUR 125 million so far this year,
this risk currently corresponds to around EUR 320 million of the
order book. Despite the moderate level of order cancellations so far,
overcapacity in shipping can potentially in the coming months lead to
ship owners reassessing the need to cancel ordered ships.
Efficient implementation of the significant number of adjustment
measures underway in the Company form the prerequisite for improving
profitability.
Events after the reporting period
Personnel restructuring measures continued in October as the Company
continued structural changes and the markets remained weak. The
merger of Hiab and Kalmar business areas proceeded to the
organisations developing product and service offering as well as to
the Americas and Asia Pacific sales and service regions. The planned
reorganisation and capacity adjustment measures are estimated to see
a further reduction of some 500 employees globally.
Cargotec plans to develop its unit in Tampere, Finland, into a
competence and technology centre to strengthen the competitiveness of
the company's products globally. The focus of the operation is
planned to change from traditional manufacturing to developing new
products and solutions and readiness for serial production. This
would also lead to personnel implications. Cargotec employs today
approximately 550 people in Tampere.
Outlook
Due to the weak market situation, demand for Cargotec's products and
services is expected to continue clearly lower than last year.
Despite expected growth in marine cargo handling business Cargotec's
2009 sales are estimated to decline approximately 25 percent from the
previous year's.
An estimated total of approximately EUR 70 million will be booked as
productivity-improving restructuring costs for 2009, with EUR 37
million booked in January-September. Cargotec estimates 2009
operating result after restructuring costs to be negative.
Financial Calendar
2009 Financial Statements Review on Wednesday 3 February 2009
Helsinki, 22 October 2009
Cargotec Corporation
Board of Directors
This interim report is unaudited.
Cargotec's Interim Report January-September 2009
Condensed Consolidated Statement of Income
MEUR 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Sales 559.4 848.4 1,912.2 2,475.7 3,399.2
Cost of goods
sold -467.8 -688.6 -1,612.1 -1,981.9 -2,762.5
Gross profit 91.6 159.8 300.1 493.7 636.7
Gross profit,
% 16.4 % 18.8 % 15.7 % 19.9 % 18.7 %
Costs and
expenses -79.9 -110.3 -270.4 -336.9 -444.5
Restructuring
costs -14.9 - -36.7 - -19.1
Share of
associated
companies'
and joint
ventures'
income -0.1 0.0 -0.1 0.0 0.6
Operating
profit -3.3 49.6 -7.1 156.9 173.7
Operating
profit, % -0.6 % 5.8 % -0.4 % 6.3 % 5.1 %
Financing
income and
expenses -6.1 -3.8 -20.1 -15.0 -28.5
Income before
taxes -9.4 45.7 -27.2 141.8 145.2
Income before
taxes, % -1.7 % 5.4 % -1.4 % 5.7 % 4.3 %
Taxes 9.3 -4.0 21.4 -30.0 -24.4
Net income
for the
period -0.1 41.7 -5.9 111.9 120.8
Net income
for the
period, % 0.0 % 4.9 % -0.3 % 4.5 % 3.6 %
Net income
for the
period
attributable
to:
Equity
holders of
the Company -1.3 41.0 -8.2 109.9 118.4
Minority
interest 1.2 0.8 2.3 2.0 2.4
Total -0.1 41.8 -5.9 111.9 120.8
Earnings per share for profit attributable to the equity holders of the
Company:
Basic
earnings per
share, EUR -0.02 0.66 -0.13 1.77 1.91
Diluted
earnings per
share, EUR -0.02 0.66 -0.13 1.77 1.91
Consolidated Statement of Comprehensive Income
7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Net income
for the
period -0.1 41.7 -5.9 111.9 120.8
Gain/loss on
cash flow
hedges 51.8 -88.3 17.4 -63.3 -131.1
Gain/loss on
cash flow
hedges
transferred
to Statement
of Income -1.6 5.4 35.1 -1.4 29.2
Translation
differences 24.4 19.8 13.6 9.2 9.8
Taxes
relating to
components of
other
comprehensive
income -14.4 22.1 -15.3 17.1 27.9
Comprehensive
income for
the period 60.2 0.7 45.0 73.4 56.6
Comprehensive
income for
the period
attributable
to:
Equity
holders of
the Company 58.1 -0.2 42.3 71.4 53.2
Minority
interest 2.1 0.8 2.6 2.0 3.4
Total 60.2 0.7 45.0 73.4 56.6
The consolidated comprehensive income is presented according to
revised IAS 1.
Condensed Consolidated Statement of Financial Position
ASSETS
MEUR 30.9.2009 30.9.2008 31.12.2008
Non-current assets
Intangible assets 787.3 776.7 754.1
Tangible assets 297.3 272.9 283.5
Loans receivable and
other interest-bearing
assets 1) 7.4 6.6 7.7
Investments 8.5 8.7 9.0
Non-interest-bearing
assets 139.5 93.7 160.3
Total non-current assets 1,240.0 1,158.7 1,214.6
Current assets
Inventories 710.5 885.8 881.9
Loans receivable and
other interest-bearing
assets 1) 2.1 0.3 0.2
Accounts receivable and
other
non-interest-bearing
assets 608.3 737.0 863.0
Cash and cash equivalents
1) 209.8 121.9 79.2
Total current assets 1,530.6 1,745.2 1,824.3
Total assets 2,770.6 2,903.9 3,038.9
EQUITY AND LIABILITIES
MEUR 30.9.2009 30.9.2008 31.12.2008
Equity
Shareholders' equity 861.2 874.1 855.3
Minority interest 10.4 7.8 9.1
Total equity 871.6 881.9 864.4
Non-current liabilities
Loans 1) 509.5 438.5 440.2
Deferred tax liabilities 46.6 33.3 43.0
Provisions 19.0 41.9 34.6
Pension benefit and other
non-interest-bearing
liabilities 103.0 99.2 144.7
Total non-current
liabilities 678.1 612.9 662.5
Current liabilities
Loans 1) 88.9 79.2 114.6
Provisions 70.8 53.9 70.4
Advances received 388.7 405.7 420.4
Accounts payable and
other
non-interest-bearing
liabilities 672.5 870.3 906.5
Total current liabilities 1,220.9 1,409.1 1,512.0
Total equity and
liabilities 2,770.6 2,903.9 3,038.9
1) Included in interest-bearing net debt. In addition, the
calculation of the interest-bearing net debt includes the hedging of
cross-currency risk relating to the USD 300 million Private Placement
bond, totaling EUR 20.9 (September 30, 2008: 16.0 and December 31,
2008: 10.2) million on September 30, 2009.
Consolidated Statement of Changes in Equity
Attributable to the equity holders of the Company
Trans-
Share lation Fair
Share premium diffe- value Retained Minority Total
MEUR capital account rences reserves earnings Total interest equity
Equity on
1.1.2008 64.2 97.4 -29.6 19.9 738.7 890.6 6.1 896.7
Comprehensive
income for
the period* 8.9 -47.3 109.9 71.5 2.0 73.4
Dividends
paid -65.3 -65.3 -0.6 -65.9
Shares
subscribed
with options 0.1 0.4 0.4 0.4
Acquisition
of
treasury
shares -23.6 -23.6 -23.6
Share-based
incentives,
value of
received
services* 0.5 0.5 0.5
Other changes 0.3 0.3
Equity on
30.9.2008 64.3 97.7 -20.7 -27.4 760.2 874.1 7.8 881.9
Equity on
1.1.2009 64.3 98.0 -20.4 -54.5 768.0 855.3 9.1 864.4
Comprehensive
income
for the
period* 13.6 36.9 -8.2 42.3 2.6 45.0
Dividends
paid -36.7 -36.7 -0.7 -37.4
Shares
subscribed
with options 0.0 0.0 0.0 0.0
Share-based
incentives,
value of
received
services* 0.3 0.3 0.3
Other changes 0.0 -0.7 -0.7
Equity on
30.9.2009 64.3 98.0 -6.8 -17.7 723.4 861.2 10.4 871.6
* Net of tax
Condensed Consolidated Statement of Cash Flows
MEUR 1-9/2009 1-9/2008 1-12/2008
Net income for the period -5.9 111.9 120.8
Depreciation 41.6 42.3 60.1
Other adjustments -1.3 45.0 52.3
Change in working capital 164.2 -41.0 -99.4
Cash flow from operations 198.7 158.1 133.8
Cash flow from financial items and
taxes -24.0 -33.4 -40.1
Cash flow from operating activities 174.6 124.8 93.7
Acquisitions -4.8 -40.4 -46.5
Cash flow from investing
activities, other items -60.5 -72.3 -108.6
Cash flow from investing activities -65.4 -112.7 -155.1
Acquisition of treasury shares 0.0 -23.6 -23.6
Proceeds from share subscriptions 0.0 0.4 0.7
Dividends paid -37.4 -65.9 -66.6
Proceeds from long-term borrowings 101.2 0.7 0.7
Repayments of long-term borrowings -1.1 -2.2 -2.4
Proceeds from short-term borrowings 12.0 38.0 61.3
Repayments of short-term borrowings -44.2 -24.6 -32.0
Cash flow from financing activities 30.6 -77.2 -61.9
Change in cash 139.8 -65.1 -123.3
Cash, cash equivalents and bank
overdrafts at the beginning of
period 45.9 167.5 167.5
Effect of exchange rate changes 0.4 2.5 1.7
Cash, cash equivalents and bank
overdrafts at the end of period 186.1 104.9 45.9
Bank overdrafts at the end of
period 23.7 17.0 33.3
Cash and cash equivalents at the
end of period 209.8 121.9 79.2
Key Figures
1-9/2009 1-9/2008 1-12/2008
Equity/share EUR 14.04 14.26 13.95
Interest-bearing net debt MEUR 400.0 404.7 477.8
Total equity/total assets % 36.6 35.3 33.0
Gearing % 45.9 45.9 55.3
Return on equity % -0.9 16.8 13.7
Return on capital employed % -0.5 15.3 12.7
Segment Reporting
Sales by geographical segment,
MEUR 1-9/2009 1-9/2008 1-12/2008
EMEA 917 1,410 1,901
Americas 327 397 556
Asia Pacific 668 669 942
Total 1,912 2,476 3,399
Sales by geographical segment, % 1-9/2009 1-9/2008 1-12/2008
EMEA 48.0 % 56.9 % 55.9 %
Americas 17.1 % 16.0 % 16.4 %
Asia Pacific 34.9 % 27.0 % 27.7 %
Total 100.0 % 100.0 % 100.0 %
Sales, MEUR 1-9/2009 1-9/2008 1-12/2008
Hiab 416 691 907
Kalmar 795 1,103 1,515
MacGregor 704 687 985
Internal sales -3 -6 -8
Total 1,912 2,476 3,399
Operating profit, MEUR 1-9/2009 1-9/2008 1-12/2008
Hiab -29.2 * 45.7 49.4 **
Kalmar 21.2 * 77.5 89.6 **
MacGregor 64.7 52.9 83.6
Corporate administration and
support functions -27.0 * -19.2 -29.8 **
Operating profit from operations 29.6 * 156.9 192.8 **
Restructuring costs -36.7 - -19.1
Total -7.1 156.9 173.7
Operating
profit, % 1-9/2009 1-9/2008 1-12/2008
Hiab -7.0 % * 6.6 % 5.4 % **
Kalmar 2.7 % * 7.0 % 5.9 % **
MacGregor 9.2 % 7.7 % 8.5 %
Cargotec,
operating
profit from
operations 1.5 % * 6.3 % 5.7 % **
Cargotec -0.4 % 6.3 % 5.1 %
* Excluding restructuring costs of which business segment Hiab
accounted for EUR 23.2 million, Kalmar for EUR 9.8 million and
Corporate administration and support functions for EUR 3.7 million.
** Excluding restructuring costs of which business segment Hiab
accounted for EUR 14.1 million, Kalmar for EUR 4.5 million and
Corporate administration and support functions for EUR 0.3 million.
Orders received, MEUR 1-9/2009 1-9/2008 1-12/2008
Hiab 382 661 818
Kalmar 576 1,217 1,566
MacGregor 409 1,264 1,393
Internal orders received -2 -7 -9
Total 1,364 3,136 3,769
Order book, MEUR 30.9.2009 30.9.2008 31.12.2008
Hiab 127 229 164
Kalmar 459 778 704
MacGregor 1,785 2,480 2,187
Internal order book 0 -1 -1
Total 2,371 3,486 3,054
Capital expenditure, MEUR 1-9/2009 1-9/2008 1-12/2008
In fixed assets (excluding
acquisitions) 62.9 46.5 75.7
In leasing agreements 0.8 0.6 1.1
In customer financing 16.2 26.0 35.9
Total 79.9 73.1 112.8
Number of employees at the end
of period 30.9.2009 30.9.2008 31.12.2008
Hiab 3,519 4,508 4,308
Kalmar 4,096 4,777 4,766
MacGregor 2,490 2,548 2,577
Corporate administration and
support functions 304 167 175
Total 10,409 12,000 11,826
Average number of employees 1-9/2009 1-9/2008 1-12/2008
Hiab 3,974 4,540 4,509
Kalmar 4,438 4,639 4,680
MacGregor 2,501 2,410 2,449
Corporate administration and
support functions 271 126 139
Total 11,184 11,716 11,777
Notes
Taxes in income
statement
MEUR 1-9/2009 1-9/2008 1-12/2008
Current year tax expense 16.1 55.0 44.3
Change in deferred tax
assets and liabilities -32.7 -9.6 -9.7
Tax expense for previous
years -4.7 -15.4 -10.2
Total -21.4 30.0 24.4
Commitments
MEUR 30.9.2009 30.9.2008 31.12.2008
Guarantees 0.2 0.2 0.2
Dealer financing 0.1 0.2 0.2
End customer financing 10.6 6.7 11.5
Operating leases 54.6 53.2 48.0
Off balance sheet
investment commitments - 4.2 -
Other contingent
liabilities 3.8 3.8 4.0
Total 69.3 68.2 63.9
Cargotec leases property, plant and equipment under non-cancellable
operating leases. The leases have varying terms and renewal rights.
It is not anticipated that any material liabilities will arise from
trade finance commitments.
Fair values of
derivative
financial
instruments
Positive Negative Net fair Net fair Net fair
fair value fair value value value value
MEUR 30.9.2009 30.9.2009 30.9.2009 30.9.2008 31.12.2008
FX forwardcontracts,
cash flow
hedges 57.1 84.8 -27.7 -56.9 -119.4
FX forward
contracts,
non-hedge
accounted 6.3 3.4 2.9 14.9 67.2
Cross currency
and interest
rate swaps,
cash flow
hedges - 9.8 -9.8 -2.5 23.7
Total 63.4 98.0 -34.6 -44.5 -28.4
Non-current
portion:
FX forward
contracts,
cash flow
hedges 14.3 27.0 -12.7 -26.2 -53.2
Cross currency
and interest
rate swaps,
cash flow
hedges - 9.8 -9.8 -2.5 23.7
Non-current
portion 14.3 36.8 -22.5 -28.6 -29.5
Current
portion 49.1 61.2 -12.1 -15.8 1.1
Cross currency and interest rate swaps hedge the US Private Placement
corporate bond funded in February 2007.
Nominal values of derivative financial instruments
MEUR 30.9.2009 30.9.2008 31.12.2008
FX forward contracts 2,493.5 3,430.6 3,617.5
Cross currency and interest rate
swaps 225.7 225.7 225.7
Total 2,719.2 3,656.3 3,843.3
Acquisitions
In March, Cargotec acquired the 18% minority share of Kalmar España,
S.A.
In July, Cargotec acquired the 20% minorities of Officine Cargotec
Ferrari Genova S.r.l. and Officine Cargotec Ferrari Prato S.r.l.
After these transactions, Cargotec has 100% ownership of the above
mentioned companies' shares.
In August, Cargotec purchased the assets of the Danish sales and
service company Arne Holst & Co. A/S.
Hiab has established a small joint-venture focusing on the
environmental segment in China.
Accounting Principles
The interim report has been prepared according to the International
Accounting Standard 34: Interim Financial Reporting. The accounting
policies adopted are consistent with those of the annual financial
statements of 2008. All figures presented have been rounded and
consequently the sum of individual figures may deviate from the
presented sum figure.
Adoption of new and revised standards starting on January 1, 2009
Starting from January 1, 2009 Cargotec has adopted the following new
and revised standards by the IASB published in 2008:
- IFRS 8, Operating segments: The adoption of the new standard does
not have a material effect on the interim financial statements, as
Cargotec segment reporting was also previously aligned with
management reporting, and the accounting principles of the management
reporting are consistent with those of the financial reporting.
-IAS 1, Presentation of Financial Statements: The adoption of the
revised standard has an impact on the presentation of interim
financial statements.
- IAS 23, Borrowing Costs: The amended standard requires that also
the borrowing costs that are directly attributable to the acquisition
of the qualifying asset form part of the cost of that asset. In
previous years, Cargotec has expensed such borrowing costs as
incurred. The amendment has no material impact on the result for the
interim reporting period.
Calculation of key figures
Total equity attributable to the shareholders
of the parent company
Equity / share = __________________________________________
Share issue adjusted number of shares
at the end of period (excluding treasury shares)
Interest-bearing
net debt = Interest-bearing debt* - interest-bearing assets
Total equity
Total equity / 100
total assets (%) = x ___________________________________________
Total assets - advances received
Interest-bearing debt* - interest-bearing assets
100
Gearing (%) = x ___________________________________________
Total equity
Net income for period
Return on equity 100
(%) = x ___________________________________________
Total equity (average for period)
Income before taxes + interest and other
financing expenses
Return on
capital employed 100
(%) = x ________________________________________________
Total assets - non-interest-bearing debt (average for
period)
Net income for the period attributable to the
shareholders of the parent company
Basic earnings /
share = _____________________________________________________
Share issue adjusted weighted average
number of shares during the
period (excluding treasury shares)
* Including cross currency hedging of the USD 300 million Private Placement
corporate bond.
Quarterly Figures
Cargotec Q3/2009 Q2/2009 Q1/2009 Q4/2008 Q3/2008
Orders received MEUR 437 471 456 633 967
Order book MEUR 2,371 2,555 2,772 3,054 3,486
Sales MEUR 559 678 675 924 848
Operating profit MEUR 11.6 * 3.0 * 15.0 * 35.9 * 49.6
Operating profit % 2.1 * 0.4 * 2.2 * 3.9 * 5.8
Basic
earnings/share EUR -0.02 -0.12 0.01 0.14 0.66
Hiab Q3/2009 Q2/2009 Q1/2009 Q4/2008 Q3/2008
Orders received MEUR 114 130 138 157 194
Order book MEUR 127 138 148 164 229
Sales MEUR 124 139 153 216 209
Operating profit MEUR -9.2 * -11.9 * -8.1 * 3.7 * 9.5
Operating profit % -7.4 * -8.5 * -5.3 * 1.7 * 4.5
Kalmar Q3/2009 Q2/2009 Q1/2009 Q4/2008 Q3/2008
Orders received MEUR 164 187 224 348 365
Order book MEUR 459 514 611 704 778
Sales MEUR 207 282 306 413 386
Operating profit MEUR 1.9 * 5.6 * 13.6 * 12.1 * 25.8
Operating profit % 0.9 * 2.0 * 4.5 * 2.9 * 6.7
MacGregor Q3/2009 Q2/2009 Q1/2009 Q4/2008 Q3/2008
Orders received MEUR 158 155 96 129 411
Order book MEUR 1,785 1,903 2,013 2,187 2,480
Sales MEUR 229 257 218 298 256
Operating profit MEUR 22.9 23.3 18.4 30.7 19.1
Operating profit % 10.0 9.1 8.5 10.3 7.5
* Excluding restructuring costs
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