2007-10-18 11:01:38 CEST
2007-10-18 11:01:38 CEST
REGULATED INFORMATION
Cargotec - Quarterly report
Cargotec s Interim Report for January-September 2007
Cargotec Corporation, Stock Exchange Release, October 18, 2007 at
12:00 p.m. Finnish time
* Orders received during January-September 2007 totalled EUR 2,892
(1-9/2006: 2,194) million. During the third quarter, orders
received were record strong at EUR 1,028 (7-9/2006: 603) million.
* The order book continued to grow and totalled EUR 2,552 (December
31, 2006: 1,621) million on September 30, 2007.
* Sales grew in January-September by 13 percent and amounted to EUR
2,151
(1-9/2006: 1,900) million. Half of this growth was organic.
During the third quarter, sales were EUR 713 (7-9/2006: 625)
million.
* Cargotec completed 14 acquisitions during January-September.
* Operating profit was EUR 156.6 (1-9/2006: 181.9) million. The
comparison period includes a EUR 17.9 million capital gain from
divestment of property. Operating profit from operations in the
third quarter was EUR 52.5 (7-9/2006: 52.1) million.
* Cash flow from operating activities before financial items and
taxes totalled EUR 138.8 (1-9/2006: 178.8) million.
* Net income for the reporting period was EUR 109.5 (1-9/2006:
126.8) million.
* Earnings per share were EUR 1.72 (1-9/2006: 1.97) with EUR 0.55
(7-9/2006: 0.81) attributable to the third quarter.
* The number of personnel at the end of the reporting period was
11,081 (September 30, 2006: 8,313). Acquisitions completed during
the reporting period increased the number of personnel by close
to 1,900 people.
* General market activity is expected to continue healthy with the
exception of the U.S. load handling market. In accordance with
its plans, Cargotec continues growth and efficiency related
investments, which burden the 2007 result. Thanks to the record
value of orders received so far in the year the estimate for full
year 2007 order intake growth has been raised to close to 30
percent. The sales growth estimate for 2007 is unchanged at
approximately 15 percent, which implies strong sales growth for
the final quarter. Due to the growth operating profit in euros
will improve from the previous quarters. Operating profit margin
for the final quarter is estimated to remain at the third quarter
level.
Cargotec's President and CEO Mikael Mäkinen:"The value of orders received during the third quarter exceeded a
record level of 1 billion euros. It is a signal on one hand of
healthy market activity and on another hand of our success in product
development and in expansion of our global market presence. We
continue our investments in strengthening Cargotec's presence and
market position also the remainder of the year. I am especially
pleased with the strong sales growth in Asia as well as the healthy
order intake in our offshore division acquired in spring. Despite the
current weak demand for load handling equipment in the U.S. we
believe also that market longer term offers us significant growth
opportunities."
Analyst and Press Conference:
The analyst and press conference hosted at Cargotec's head office,
Sörnäisten rantatie 23, Helsinki, will be combined with a live
international telephone conference on October 18, 2007 at 2:00 p.m.
Finnish time. The whole combined event will be in English. The
presentation material will be available on the Company's internet
pages by 2:00 p.m. Finnish time.
The conference call phone numbers are the following:
+1 866 966 5335 (if calling from the U.S.)
+44 20 3023 4412 (if calling from rest of world)
The conference can also be viewed as a live audio webcast through the
internet pages at www.cargotec.com starting at 2:00 p.m. Finnish
time. The archived webcast will be available on the internet pages
later the same day.
Sender:
Cargotec Corporation
Kari Heinistö
Senior Executive Vice President and CFO
Eeva Mäkelä
SVP, Investor Relations and Communications
For further information, please contact:
Kari Heinistö, Senior Executive Vice President and CFO, tel. +358 204
55 4256
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358
204 55 4281
Cargotec is the world's leading provider of cargo handling solutions
whose products are used in the different stages of material flow in
ships, ports, terminals, distribution centers and local
transportation. Cargotec Corporation's brands, Hiab, Kalmar and
MacGREGOR, are market leaders in their fields and well-known among
customers all over the world. Cargotec's sales are EUR 2.8 billion.
The company employs over 11,000 people and operates in close to 160
countries. Cargotec's class B shares are quoted on the Nordic
Exchange, Helsinki.
www.cargotec.com
Operating Environment
Demand for Hiab's load handling equipment remained very buoyant in
Europe and Asia Pacific in July-September. Markets grew, particularly
in Central Eastern Europe, Russia and China driven by growing demand
for equipment from the construction, transport and recycling
industries. The U.S. markets remained weak, with new truck
registrations clearly below their 2006 levels and no signs of
recovery in demand from the construction industry, which declined in
the late spring. This market decline affected particularly demand for
Hiab's truck-mounted forklifts, tail lifts and loader cranes.
Demand for Kalmar's container handling equipment was healthy. In
particular, demand for reachstackers, rubber-tired gantry (RTG)
cranes and empty container handlers was clearly higher year on year.
Kalmar has been able to significantly improve its market position in
RTGs globally. Demand for straddle carriers continued healthy
although the overall market is not at the strong level of 2006.
Demand for heavy industrial handling equipment continued to be lively
in Europe and stable elsewhere.
Demand for MacGREGOR's marine cargo flow systems and offshore
solutions continued very high in the third quarter. The increasing
number of new vessel orders in shipyards around the world boosted
demand for MacGREGOR's solutions. The markets for ship cranes, hatch
covers and offshore solutions were strong. With respect to RoRo
equipment for PCTCs (pure car and truck carriers), the markets
remained strong while those for bulk handling equipment strengthened
in Asia Pacific.
Demand for services developed positively during the reporting period.
In Europe, there was strong demand for load handling services due to
the increased number of installed equipment and high utilisation
rates. In U.S. demand for load handling services weakened from the
previous year. The market for container handling services continued
healthy in Europe and stable elsewhere in the world. Demand for
marine services remained at a healthy level in Europe and Asia. The
increasing number of vessels to be delivered is positively
influencing the market for services.
Orders Received
Orders received by Cargotec in January-September totalled EUR 2,892
(1-9/2006: 2,194) million. The value of the orders secured during the
third quarter was record high at EUR 1,028 (7-9/2006: 603) million.
The high value of orders received is especially due to orders for
long ship series received by MacGREGOR, the deliveries of which
extend for a period of several years.
Orders received, MEUR 1-9/2007 1-9/2006 1-12/2006
Hiab 731 706 946
Kalmar 1,083 955 1,282
MacGREGOR 1,080 535 684
Internal orders received -3 -2 -2
Total 2,892 2,194 2,910
Hiab
Of all the orders received in January-September 2007, Hiab accounted
for EUR 731
(1-9/2006: 706) million. The orders received in July-September
totalled EUR 223 (7-9/2006: 207) million.
In the third quarter, Hiab received numerous small orders. During the
reporting period Hiab received among others orders for cranes
suitable for defence use from China and the United States.
Furthermore, Hiab received a significant order for 45 loader cranes
which will be delivered to Mexico.
In July, Hiab and SAWO, Hiab's importer in Denmark, secured an order
for 133 hooklifts and 22 loader cranes from the truck manufacturer,
MAN. The hooklifts and loader cranes to be supplied to the Danish
Army will be installed by SAWO. The deliveries will start in 2007 and
continue into 2008. The order value will be booked evenly over the
duration of the contract.
Kalmar
Of all the orders received in January-September 2007, Kalmar
accounted for EUR 1,083
(1-9/2006: 955) million. The orders received in July-September
totalled EUR 324 (7-9/2006: 258) million.
In August, Kalmar received an order for 10 E-One RTGs from Saigon
Newport (SNP) of Vietnam. The environmentally friendly E-One RTGs
will be equipped with the Smartpath® container position verification
system and delivered during the autumn of 2008 to SNP's container
terminal. This order is a continuation of an order placed by SNP in
May for 10
E-One RTGs.
In August, Kalmar also received an order for 30 straddle carriers
from the Italian company, Medcenter Container Terminal SpA (MCT). The
straddle carriers will be delivered in 2007-2008 to MCT's terminal in
Gioia Tauro in Southern Italy.
In June, Kalmar received significant straddle carrier orders from
German MSC Bremerhaven and Australian Patrick Corporation. In
2007-2008 10 straddle carriers will be delivered to MSC Bremerhaven
and 15 straddle carriers to Patrick Corporation to the ports of
Melbourne and Sidney.
In June, Tangier Medgate S.A. ordered 11 E-One RTGs from Kalmar. The
equipment will be delivered during the first half of 2008 to the port
of Tangier Mediterranean in Morocco. The RTGs will be fitted with
twin-lift spreaders and the Smartrail® automatic steering and
container position verification system.
In March, Kalmar signed a contract with the DP World port operator
regarding deliveries of 84 terminal tractors to the Jebel Ali port
near the city of Dubai.
In January, Kalmar signed a contract for the delivery of 12 E-One
RTGs to the Brazilian company, Santos Brasil S/A. The RTGs will be
fitted with the Smartrail® automatic steering and container position
verification system developed by Kalmar and delivered to the port of
Santos at the turn of 2007/2008.
MacGREGOR
Of all the orders received in January-September 2007, MacGREGOR
accounted for EUR 1,080 (1-9/2006: 535) million. The orders received
in July-September totalled a record high level of EUR 483 (7-9/2006:
139) million.
In the third quarter of 2007, MacGREGOR received a large number of
ship crane orders from China, with Shanghai Shipyard ordering 32 ship
cranes to be delivered in 2009-2011 and the Yangzijiang Shipyard
ordering 88 ship cranes for bulk, general cargo and container
vessels. 48 ship cranes will also be delivered to the Wenchong
Shipyard in 2008-2012. Furthermore, 40 ship cranes and hatch covers
will be delivered during 2009-2010 to ten general cargo vessels
ordered from China by the German ship owner Herman Buss.
In September, MacGREGOR also secured a RoRo equipment order from the
Korean shipyard, Hyundai Mipo. The equipment, which includes
different kinds of ramps, hoistable cardecks and doors, will be
delivered during 2009-2011.
In August and September, MacGREGOR received significant offshore
equipment orders from China, Europe, the USA, Canada, Malaysia and
India. The equipment, which includes, for example, mooring winches,
knuckle boom offshore cranes and deck machinery equipment, will be
delivered during 2008-2010.
MacGREGOR secured a large number of ship crane orders also in the
second quarter. A total of 318 ship cranes were ordered to China,
India and Taiwan for delivery in 2008-2011. In June, the company
received an order for hatch covers and 16 ship cranes from the
Chinese shipyard, COSCO Dalian. The equipment will be delivered in
2008-2009. In May, MacGREGOR received an order for four ship board
twin cranes from the Polish-Chinese shipowner, Chipolbrok. The units,
the largest of their kind in the world, will be delivered in
2007-2008.
In June, the company signed a contract on the delivery of RoRo
equipment for 15 vessels under construction in Korea. The equipment
will be delivered in 2008-2010. In March, the RoRo division also
secured contracts from several shipyards in Germany, Japan and
Croatia.
Cargotec Services
Cargotec strengthened its services operations during the reporting
period by a new Cargotec Services operating model. The aim is to
speed up services growth by better focusing resources and service
knowhow between Cargotec's business areas. The majority of the
services business within Hiab, Kalmar and MacGREGOR will
organizationally continue as earlier. Cooperation in service concept
development, spare parts sales and training of service people will be
strengthened by a matrix organization, where Cargotec Services acts
as an internal centre of expertise. Special focus in the operating
model will be put on total maintenance of container and bulk
terminals as well as significant refurbishment and conversion
projects. Harald de Graaf, member of Cargotec's Executive Board, is
President of the Cargotec Services.
In September, the Norwegian company Fred Olsen Marine Services
contracted MacGREGOR to modernise the valve system of the world's
largest tanker. MacGREGOR's Service division will upgrade the remote
controlled valve system and provide crew training in its operation.
In the second quarter, MacGREGOR signed a three-year maintenance
agreement with the Italian company, Grimaldi Group. The agreement
covers the maintenance of MacGREGOR RoRo equipment on board 26 of
Grimaldi's RoRo vessels.
During the first quarter of 2007, Kalmar signed long-term agreements
covering the rental, servicing and customer financing of its
equipment in Sweden with Setra Group and Wallhamn AB, Sweden's
largest private port. Kalmar will rent, maintain and finance 31
forklift trucks that will be delivered to 12 of Setra's sawmills in
the spring of 2007. The agreement with Wallhamn AB consists of the
lease of several units of Kalmar container handling equipment. In the
same connection, the parties agreed on the maintenance of Kalmar and
other suppliers' equipment.
Order Book
Cargotec's order book totalled EUR 2,552 (December 31, 2006: 1,621)
million on September 30, 2007. Of the order book, Hiab accounted for
EUR 255 (215) million, Kalmar EUR 684 (593) million, and MacGREGOR
EUR 1,614 (813) million. A considerable part of MacGREGOR's order
book is for delivery in 2008-2012.
Order book, MEUR 30.9.2007 30.9.2006 31.12.2006
Hiab 255 215 215
Kalmar 684 581 593
MacGREGOR 1,614 798 813
Total 2,552 1,594 1,621
Sales
Cargotec's sales grew in January-September by 13 percent and totalled
EUR 2,151
(1-9/2006: 1,900) million. Half of the growth was organic. The sales
impact of acquisitions completed in the past 12 months was
approximately EUR 130 million in January-September 2007.
Despite the continued tight component situation, Cargotec's business
areas have succeeded in achieving the targeted growth in assembly
capacity. However, the strong demand for trucks in Europe has
resulted in delivery times for trucks lengthening considerably, which
in turn delays installation schedules. This has an adverse effect on
the delivery time of Hiab's products to end customers and limits
Hiab's sales growth.
Cargotec's sales for July-September 2007 amounted to EUR 713
(7-9/2006: 625) million.
Hiab's sales in the third quarter amounted to EUR 202 (7-9/2006: 208)
million, Kalmar's sales were EUR 326 (290) million and MacGREGOR's
sales EUR 187 (127) million.
Sales, MEUR 1-9/2007 1-9/2006 1-12/2006
Hiab 687 675 914
Kalmar 979 883 1,203
MacGREGOR 487 344 482
Internal sales -2 -1 -2
Total 2,151 1,900 2,597
Sales for services increased by 28 percent on the corresponding
period in 2006 and amounted to EUR 537 (1-9/2006: 418) million, which
is 25 (22) percent of total sales. Services accounted for 16
(1-9/2006: 15) percent of sales at Hiab, 30 (26) percent at Kalmar,
and 27 (27) percent at MacGREGOR in January-September 2007.
Financial Result
Cargotec's operating profit from operations for January-September
2007 was EUR 156.6
(1-9/2006: 164.0) million, representing 7.3 (8.6) percent of sales.
Operating profit from operations for the third quarter was EUR 52.5
(7-9/2006: 52.1) million, equal to 7.4 (8.3) percent of sales. Hiab
accounted for EUR 13.7 (17.4) million of third quarter operating
profit from operations, Kalmar for EUR 27.8 (27.5) million, and
MacGREGOR for EUR 15.0 (9.9) million.
Hiab's result was weakened by a significant underutilisation of
capacity resulting from the weak demand situation in the U.S. In
Europe, profitability during the year has improved but the
July-September result was affected by the holiday season. Kalmar
continued to make product development investments according to plan,
which affected the result compared to the previous year. However,
compared to the second quarter, Kalmar's profitability clearly
improved during the third quarter. MacGREGOR's offshore division
result in the third quarter was burdened less than anticipated by the
cost impact of the purchase price allocation treatment.
Operating profit for January-September includes a EUR 4.6 (1-9/2006:
1.8) million cost impact from the purchase price allocation treatment
of acquisitions, with EUR 2.2 (7-9/2006: 0.9) million attributable to
the third quarter. The full year estimate on the cost impact of the
allocation treatment on Cargotec's operating profit remains at
approximately EUR 10 million.
Operating profit during the reporting period was EUR 156.6 (1-9/2006:
181.9) million. The comparison period includes a EUR 17.9 million
capital gain from divestment of property.
Net income for the period was EUR 109.5 (1-9/2006: 126.8) million and
earnings per share were EUR 1.72 (1.97).
Balance Sheet, Financing and Cash Flow
On September 30, 2007, Cargotec's net working capital amounted to EUR
249 (December 31, 2006: 209) million. Tangible assets on the balance
sheet were EUR 255 (218) million and intangible assets EUR 755 (581)
million.
Cash flow from operating activities before financial items and taxes
for January-September 2007 totalled EUR 138.8 (1-9/2006: 178.8)
million and that for July-September EUR 55.5 (7-9/2006: 65.8)
million.
Net debt on September 30, 2007 was EUR 365 (December 31, 2006: 107)
million. Total equity/total assets ratio was 40.2 (47.6) percent
while gearing was 41.6 (12.3) percent. The purchase of own shares
during the third quarter for close to EUR 40 million raised gearing.
Cargotec had EUR 467 million of committed credit facilities on
September 30, 2007. These facilities were unused. The EUR 225 million
(USD 300 million) Private Placement placed in December 2006 with U.S.
institutional investors was funded in February 2007. 14 U.S.
institutional investors participated in the transaction. The
placement has been hedged through Cross Currency and Interest Rate
Swaps into a fixed interest rate euro loan. Its interest rate varies
between 4.525 and 4.756 percent depending on the maturity, which
varies between 7 and 12 years.
New Products and Product Development
In January-September 2007, Cargotec's research and product
development expenditure was EUR 33.2 (1-9/2006: 22.1) million,
representing 1.5 (1.2) percent of sales.
During the reporting period, Hiab introduced two new loader crane
models. The HIAB XS 211 loader crane complements the mid-sized loader
crane range, for which demand is highest in most markets. The company
also introduced the HIAB XS 1055, the largest Hiab loader crane by
capacity, which provides users with the longest reach and highest
lifting capacity delivered by any HIAB crane in the marketplace
today.
Kalmar continued the development of large cranes and automation
solutions. The acquisition of the Dutch ACT B.V. strengthened
Kalmar's software knowhow, technology base and resources
considerably. Work continues to develop environmentally friendly
hybrid solutions in a second two-year terminal tractor development
project, which is run together with the U.S. Environmental Protection
Agency in the ports of New York and New Jersey.
MacGREGOR introduced in the third quarter a new lift-away,
multi-panel hatch cover model enabling the user to lift five hatch
covers at a time, instead of lifting them one by one. Furthermore,
the company continued the joint product development of its RoRo and
offshore solutions.
Capital Expenditure
Cargotec's capital expenditure for January-September, excluding
acquisitions and customer financing, totalled EUR 38.0 (1-9/2006:
30.8) million. Customer financing investments were EUR 23.5 (14.5)
million.
Hiab has decided to combine its loader crane and forestry crane
product lines as of January 2008. This organisational change will
improve and strengthen the use of shared resources in crane product
development, manufacturing and marketing. The Crane product line
comprises the manufacturing of loader cranes, forestry cranes and
recycling cranes in five production units in Europe and Asia.
Hiab has adapted the operations of its load handling equipment
production units in the United States and Ireland due to weakened
demand in the U.S. markets.
During the third quarter, MacGREGOR continued to develop new
cooperation partners to meet the significant growth in its ship crane
order book. Building work for a hatch cover production facility is
ongoing in Nantong, China together with a local partner.
Acquisitions
Cargotec completed 14 acquisitions in January-September 2007. In
February, a contract was signed to acquire the Indian company,
Indital Construction Machinery Ltd. The acquisition was finalised in
April and gives Cargotec a manufacturing presence in India while
supporting the sales activities of all three of Cargotec's business
areas in the region. Cargotec has a 95 percent holding in Indital.
As part of strengthening Cargotec's presence in India Kalmar bought
the remaining shares
(49 percent) in Kalmar India in September 2007.
In December 2006, Cargotec announced its plan to acquire the Italian
company, CVS Ferrari. The German competition authority announced in
August 2007 that it had ruled against the acquisition on the basis of
it being anticompetitive. Cargotec is investigating the opportunity
to appeal the decision.
Hiab's Acquisitions
In July, Hiab signed an agreement to acquire a service company in
Florida, USA. Bay Equipment Repairs Inc. is a long-term service
partner of Hiab, and most of its customers are Hiab customers. Bay
Equipment Repairs had sales of approximately EUR 1 million in 2006
and the company employs 13 persons.
In May, Hiab signed a contract to acquire the Estonian company, Balti
ES, which manufactures steel structures and components. Balti ES
employs approximately 600 people and posted sales of approximately
EUR 14 million in 2006. Finalised in June, the acquisition supports
both Hiab's and Kalmar's increasing demand for components.
In January, Hiab signed an agreement of intent to acquire the sales,
service and installation units of its current distributor, Berger, in
the Czech Republic, Slovakia, Hungary and Croatia. The acquisition
was finalised in May. The annual sales of the acquired operations are
approximately EUR 16 million, and the units employ approximately 75
people.
In January, a contract was signed to acquire a majority holding in BG
Crane Pty. Ltd., the Australian importer of Hiab equipment,
previously an associated company. The deal was finalised in February.
The company employs approximately 100 people and had sales of
approximately EUR 20 million in 2006.
Kalmar's Acquisitions
In August, Kalmar made an agreement to acquire Advanced Cargo
Transshipment B.V. (ACT), an automation and software producer based
in the Netherlands. The acquisition will increase Kalmar's resources
in automated port terminal R&D. ACT specialises in developing and
marketing equipment navigation control and terminal operation control
hardware and software.
In April, Kalmar signed a contract to acquire the remaining minority
share in Kalmar Asia Pacific Ltd. Kalmar now fully owns the company.
In February, Kalmar acquired the U.S. based service company Port
Equipment Service, Inc. (PES). PES employs 56 people and had sales of
approximately EUR 4 million in 2006. This acquisition strengthened
Kalmar's service business, particularly in ports and railroad
terminals on the U.S. East Coast.
In January, Kalmar acquired the Slovenian service company, Tagros
d.o.o. Tagros services container handling equipment and forklifts.
This acquisition is enabling Kalmar to build up its service and sales
activities in Slovenia and the Northern Balkan Peninsula. Tagros
employs approximately 35 people and had sales of approximately EUR 2
million in 2006.
In January, the company also agreed to acquire Truck och Maskin i
Örnsköldsvik AB in Northern Sweden. The acquisition was finalised in
February and has strengthened Kalmar's sales and service network for
industrial customers in the wood handling segment. Truck och Maskin
employs approximately 100 people and had sales of approximately EUR
14 million in the accounting period that ended on April 30, 2006.
In December 2006, a contract was signed to acquire Kalmar's Spanish
distributor, Kalmar Espana. The acquisition was finalised in April.
MacGREGOR's Acquisitions
During the first half of the year, MacGREGOR expanded its operations
into the offshore segment.
In March, MacGREGOR agreed to acquire Norwegian Hydramarine AS and
Singaporean Plimsoll Corporation Pte Ltd. The acquisitions were
finalised in April. Hydramarine specialises in the development of sub
sea load handling equipment such as cranes. In 2006, Hydramarine
had sales of EUR 63 million and employed 150 people. Plimsoll
Corporation Pte Ltd is the leading supplier of equipment for oil
drilling and gas vessels and other types of ships in the Asia Pacific
region. Plimsoll's sales in 2006 totalled approximately EUR 43
million. The company employs approximately 600 people. MacGREGOR
acquired 90 percent of both Hydramarine and Plimsoll with the
remaining shares being owned by the employees.
In June, MacGREGOR established a new division, MacGREGOR Offshore.
The division consists of Hydramarine and Plimsoll and concentrates on
achieving synergy benefits and expanding the business. The new
division employs more than 700 people.
In May, a contract was signed to acquire Vestnorsk Hydraulikkservice
AS (VNH) of Norway. VNH specialises in the maintenance of hydraulic
systems and turnkey deliveries of offshore solutions for oil drilling
support vessels and other types of ships. VNH's sales amount to
approximately EUR 5 million. The company employs 21 people. The
acquisition was finalised in June.
Personnel
At the end of the reporting period, Cargotec employed 11,081
(September 30, 2006: 8,313) people. Acquisitions during the period
increased the number of personnel by close to 1,900 people. Hiab
employed 4,405 (3,615) people, Kalmar 4,431 (3,543) and MacGREGOR
2,162 (1,109).
Of Cargotec's total employees, 14 percent were located in Finland, 22
percent in Sweden and 30 percent in the rest of Europe. North and
South American personnel represented 11 percent, Asia Pacific 22
percent and the rest of the world 1 percent of total employees.
Shares and Stock Options
Cargotec's share capital on September 30, 2007 was EUR 64,137,138
(December 31, 2006: 64,046,460). The share capital was increased
during the reporting period through stock options. On September 30,
2007, the number of Cargotec's listed class B shares totalled
54,611,049 while that of its unlisted class A shares totalled
9,526,089. The remaining 2005A and 2005B stock options may be used to
subscribe for a further 271,872 class B shares, thereby increasing
the share capital by EUR 271,872. Of that amount a total of 2,850
class B shares were subscribed in September 2007 which will be
entered into the Finnish Trade Register by October 31, 2007.
During January-September 2007, the trading volume of Cargotec class B
shares totalled around 51 million at a total value of approximately
EUR 2,167 million. The closing price for class B shares on September
30, 2007 was EUR 34.46. The highest price during the reporting period
was EUR 49.83 and the lowest EUR 33.15. The market capitalisation,
with the unlisted class A shares valued at the average price of the
class B shares on the last day of the period, amounted to EUR 2,151
million, excluding class B treasury shares held by the company.
Shares directly or indirectly owned by Cargotec's Executive Board
members has increased during the year. As of September 30, 2007 the
Executive Board owned 136,314 class B shares, which represent 0.2
percent of the shares of the company.
Cargotec's Financial Targets and Incentive Program for Key Managers
In January, Cargotec published its new financial targets and a
share-based incentive program for the key managers for the years
2007-2011. The purpose of the program encouraging share ownership is
to align the interests of key managers to Cargotec's strategy and
financial targets as well as contribute to making them long-term
shareholders of the company. The incentive program covers some 60
individuals. The program offers key managers a possibility to earn a
reward in Cargotec class B shares based on accomplishment of set
targets.
Cargotec's financial targets are the following: annual net sales
growth exceeding 10 percent (incl. acquisitions), raising the
operating profit margin to 10 percent, and maintaining the gearing
below 50 percent. The targets have been set for the years 2007-2011.
The incentive program consists of four earnings periods, of which the
first is two years and the following three periods one year each. The
Board of Directors decides on the target group of the earnings period
and their maximum reward at the beginning of each earnings period.
Potential rewards from the incentive program during 2007-2011 are
based on achievement of five-year net sales and operating profit
targets as defined in Cargotec's strategy. The rewards will be paid
during 2009-2012 in both class B shares and cash. The cash portion is
dedicated to cover possible taxes and tax-related payments resulting
from the reward. The shares distributed as reward will contain a
prohibition to hand over or sell the shares within one year of the
end of an earnings period with the exception of the final earnings
period when no prohibitions are included. The maximum amount to be
paid out as shares is 387,500 class B shares currently held by the
company as treasury shares.
Changes in Cargotec's Executive Board
Pekka Vauramo, M.Sc. (Eng.) was appointed Kalmar's President as of
October 1, 2007. Vauramo started at Cargotec on September 1, 2007.
Kalmar's previous President Christer Granskog will retire by the end
of 2007 in accordance with his service contract.
Decisions Taken at Cargotec Corporation's Annual General Meeting
Cargotec Corporation's Annual General Meeting was held on February
26, 2007 in Helsinki. The meeting approved the financial statements
and consolidated financial statements. The meeting granted discharge
from liability to the President and CEO and the members of the Board
of Directors for the accounting period January 1-December 31, 2006.
The Annual General Meeting approved the Board's proposal of a
dividend of EUR 0.99 for each of the 9,526,089 class A shares and EUR
1.00 for the 53,815,646 outstanding class B shares. The meeting also
approved the remuneration of the Board members as well as that of the
auditors.
The number of members of the Board of Directors was confirmed at six
according to the proposal of Cargotec's Nomination and Compensation
Committee. Carl-Gustaf Bergström, Henrik Ehrnrooth, Tapio Hakakari,
Ilkka Herlin, Peter Immonen and Karri Kaitue were re-elected as
members of the Board of Directors.
Authorized public accountants Johan Kronberg and
PricewaterhouseCoopers Oy were elected as auditors according to the
proposal of the Audit Committee of Cargotec Corporation's Board of
Directors.
Authorizations Granted by the Annual General Meeting
The Annual General Meeting authorized the Board of Directors of
Cargotec to decide to repurchase the Company's own shares with assets
distributable as profit. 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 shares. The above-mentioned amounts include the 704,725 class B
shares already in the Company's possession. This authorization
remains in effect for a period of 18 months from the date of decision
of the Annual General Meeting.
In addition, the Annual General Meeting authorized the Board of
Directors to decide on the distribution of any shares repurchased.
The Board of Directors is authorized to decide to whom and in which
order the shares will be distributed. The Board of Directors may
decide on the distribution of repurchased shares otherwise than in
proportion to the existing pre-emptive right of shareholders to
purchase the Company's own shares. The shares may be used as
compensation in acquisitions and in other arrangements as well as to
implement the Company's share-based incentive plans in the manner and
to the extent decided by the Board of Directors. The Board of
Directors has also the right to decide on the distribution of the
shares in public trading at the Helsinki Stock Exchange to be used as
compensation in possible acquisitions. This authorization remains in
effect for a period of 18 months from the date of decision of the
Annual General Meeting.
Organization of the Board of Directors
In its organizing meeting Cargotec's Board of Directors elected Ilkka
Herlin to continue as Chairman of the Board and Henrik Ehrnrooth to
continue as Deputy Chairman. Cargotec's Senior Executive Vice
President and CFO Kari Heinistö continues to act as secretary to the
Board of Directors.
The Board of Directors re-elected among its members Ilkka Herlin,
Peter Immonen and Karri Kaitue as members of the Audit Committee.
Karri Kaitue was elected to continue as Chairman of the Audit
Committee. Board members Carl-Gustaf Bergström, Tapio Hakakari, Ilkka
Herlin and Peter Immonen were re-elected to the Nomination and
Compensation Committee. Ilkka Herlin was elected to continue as
chairman of the Nomination and Compensation Committee. Board members
Tapio Hakakari, Ilkka Herlin and Peter Immonen were elected to the
Working Committee. The Board elected Ilkka Herlin as chairman of the
Working Committee.
Share Repurchases
Cargotec's Board of Directors decided to exercise the authorization
of the Annual General Meeting to repurchase the Company's own shares.
The maximum amount of repurchased own shares will be less than 10
percent of the Company's share capital and total voting rights.
Class B shares will be purchased at public trading in the Helsinki
Stock Exchange at the market price. Class A shares will be purchased
outside the Stock Exchange at the price equivalent to the average
price of class B shares paid in the Helsinki Stock Exchange on the
purchase date. Share repurchases will be published on the transaction
days through stock exchange announcements.
In the third quarter, a total of one million own class B shares were
repurchased. Altogether, Cargotec holds 1,704,725 class B shares in
treasury.
Short-term Risks and Uncertainties
Cargotec's principal short-term risks and uncertainties are related
to the U.S. economic development and availability of components.
The present U.S. economic uncertainty and the sharp decline in
construction activity in the U.S. are reflected in the demand for
Cargotec's load handling equipment. If the economic uncertainty
continues there is a risk of it spreading more widely to the U.S.
economy, which could have an impact on other Cargotec customer
segments as well.
Cargotec has outsourced a significant proportion of its component
production and part of its assembly operations. Cargotec strives to
anticipate its component needs so that subcontractors can flexibly
meet demand. Due to generally high demand for many of the components
used by Cargotec, their availability remains tight. Additionally, the
high demand for trucks in Europe can have an adverse impact on the
delivery schedules of Hiab products during the remainder of the year.
Cargotec has made a significant number of acquisitions during the
past 12 months. Although these acquisitions are relatively small in
size and geographically dispersed, integrations always involve a
degree of uncertainty.
Outlook
General market activity is expected to continue healthy with the
exception of the U.S. load handling market. In accordance with its
plans, Cargotec continues growth and efficiency related investments,
which burden the 2007 result.
Thanks to the record value of orders received so far in the year the
estimate for full year 2007 order intake growth has been raised to
close to 30 percent. The sales growth estimate for 2007 is unchanged
at approximately 15 percent, which implies strong sales growth for
the final quarter. Due to the growth operating profit in euros will
improve from the previous quarters. Operating profit margin for the
final quarter is estimated to remain at the third quarter level.
Helsinki, October 18, 2007
Cargotec Corporation
Board of Directors
This interim report is unaudited.
CARGOTEC'S INTERIM REPORT JANUARY-SEPTEMBER 2007
CONDENSED CONSOLIDATED INCOME STATEMENT
MEUR 7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006
Sales 713.4 624.8 2,150.7 1,899.9 2,597.1
Cost of goods
sold -562.0 -497.3 -1,687.6 -1,493.0 -2,042.7
Gross profit 151.3 127.5 463.1 406.9 554.4
Gross profit,
% 21.2 % 20.4 % 21.5 % 21.4 % 21.3 %
Gain on the
sale of
property - 17.9 - 17.9 17.8
Costs and
expenses -84.6 -65.3 -266.8 -213.9 -292.2
Depreciation -14.3 -10.1 -39.7 -29.0 -40.5
Operating
profit 52.5 70.0 156.6 181.9 239.5
Operating
profit, % 7.4 % 11.2 % 7.3 % 9.6 % 9.2 %
Share of
associated
companies'
income 0.1 0.3 0.2 0.8 0.9
Financing
income and
expenses -4.3 -1.0 -12.1 -6.5 -8.4
Income before
taxes 48.2 69.3 144.7 176.2 232.0
Income before
taxes, % 6.8 % 11.1 % 6.7 % 9.3 % 8.9 %
Taxes -13.6 -17.2 -35.2 -49.4 -65.9
Net income
for the
period 34.6 52.1 109.5 126.8 166.1
Net income
for the
period,
% 4.9 % 8.3 % 5.1 % 6.7 % 6.4 %
Attributable
to:
Equity
holders of
the
Company 34.3 51.4 108.8 125.4 163.9
Minority
interest 0.3 0.7 0.7 1.4 2.2
Total 34.6 52.1 109.5 126.8 166.1
Earnings per
share for
profit
attributable
to the
equity
holders of
the
Company:
Basic
earnings per
share,
EUR 0.55 0.81 1.72 1.97 2.57
Diluted
earnings per
share,
EUR 0.55 0.80 1.72 1.96 2.56
Adjusted
basic
earnings
per share,
EUR - 0.60 * - 1.76 * 2.37 *
* Excluding gain on the sale of property after taxes
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
MEUR 30.9.2007 30.9.2006 31.12.2006
Non-current assets
Intangible assets 754.8 556.5 580.5
Tangible assets 254.9 194.6 217.6
Loans receivable and other
interest-bearing
assets 1) 2.2 0.4 0.1
Investments 4.1 3.9 4.0
Assets held for sale - - -
Non-interest-bearing assets 64.5 59.2 58.6
Total non-current assets 1,080.5 814.6 860.8
Current assets
Inventories 660.1 509.5 528.9
Loans receivable and other
interest-bearing
assets 1) 0.4 0.2 0.3
Accounts receivable and other
non-interest-bearing assets 574.2 429.3 473.7
Cash and cash equivalents 1) 94.0 122.5 124.3
Total current assets 1,328.8 1,061.5 1,127.2
Total assets 2,409.2 1,876.1 1,988.0
EQUITY AND LIABILITIES
MEUR 30.9.2007 30.9.2006 31.12.2006
Equity
Shareholders' equity 871.6 846.6 868.8
Minority interest 5.2 7.5 8.0
Total equity 876.7 854.1 876.8
Non-current liabilities
Loans 1) 408.3 191.2 195.0
Deferred tax liabilities 35.8 22.1 30.5
Provisions 21.8 20.9 30.3
Pension benefit and other
non-interest-bearing liabilities 67.1 53.8 55.2
Total non-current liabilities 533.0 288.0 311.0
Current liabilities
Loans 1) 53.0 25.1 37.2
Provisions 45.0 40.4 42.6
Accounts payable and other
non-interest-bearing liabilities 901.5 668.5 720.4
Total current liabilities 999.5 734.0 800.2
Total equity and liabilities 2,409.2 1,876.1 1,988.0
1) Included in interest-bearing net debt
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the equity
holders of
the company
Share Trans- Fair Mino-
pre- Trea- lation value Retai- rity
Share mium sury diffe- reser- ned inte- Total
MEUR capital account shares rences ve earnings Total rest equity
Equity on
31.12.2005 63.9 95.1 -5.0 4.9 -10.3 611.4 760.0 7.2 767.2
Cash flow
hedges 13.0 13.0 0.0 13.0
Trans-
lation
diffe-
rences -11.2 -11.2 -0.6 -11.8
Share-
based
incen-
tives,
value of
received
services 0.1 0.1 0.1
Total net
income
recog-
nised
directly
in
equity - - - -11.2 13.0 0.1 1.9 -0.6 1.3
Net
income
for
the period 125.4 125.4 1.4 126.8
Total
recognised
income
and
expenses
for
the
period - - - -11.2 13.0 125.5 127.3 0.8 128.1
Dividends
paid -41.3 -41.3 -41.3
Shares
subscribed
with
options 0.1 0.6 0.7 0.7
Acquisition
of
treasury
shares 0.0 0.0 0.0
Other
changes - -0.5 -0.5
Equity on
30.9.2006 64.0 95.7 -5.0 -6.3 2.7 695.6 846.6 7.5 854.1
Equity on
31.12.2006 64.0 96.0 -23.9 -12.0 10.5 734.2 868.9 8.0 876.8
Gain/loss
on cash
flow
hedges
booked to
equity 12.0 12.0 0.0 12.0
Gain/loss
on cash
flow
hedges
transferred
to IS -3.7 -3.7 -3.7
Trans-
lation
diffe-
rences -14.1 -14.1 -0.5 -14.5
Share-
based
incentives,
value of
received
services 1.3 1.3 1.3
Total
net
income
recognised
directly
in equity - - - -14.1 8.3 1.3 -4.4 -0.5 -4.9
Net income
for
the period 108.8 108.8 0.7 109.5
Total
recognised
income
and
expenses
for the
period - - - -14.1 8.3 110.1 104.4 0.2 104.6
Dividends
paid -63.2 -63.2 -0.4 -63.6
Shares
subscribed
with
options 0.1 0.7 0.8 0.8
Acquisition
of
treasury
shares -39.2 -39.2 -39.2
Other
changes 0.0 -2.6 -2.6
Equity on
30.9.2007 64.1 96.7 -63.1 -26.1 18.9 781.0 871.6 5.2 876.7
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
MEUR 1-9/2007 1-9/2006 1-12/2006
Net income for the period 109.5 126.8 166.1
Capital gains - -17.9 -17.8
Depreciation 39.7 29.0 40.5
Other adjustments 47.1 55.2 73.7
Change in working capital -57.5 -14.3 -12.7
Cash flow from operations 138.8 178.8 249.8
Cash flow from financial items and
taxes -56.5 -43.4 -51.1
Cash flow from operating activities 82.3 135.4 198.7
The gain from the sale of property - 31.9 31.3
Acquisitions -169.3 -53.0 -89.1
Cash flow from investing activities,
other items -65.7 -42.1 -58.0
Cash flow from investing activities -235.0 -63.2 -115.8
Acquisition of treasury shares -39.2 0.0 -18.9
Proceeds from share subscriptions 0.8 0.7 1.1
Dividends paid -63.9 -41.3 -41.3
Proceeds from long-term borrowings 226.9 0.3 0.1
Repayments of long-term borrowings -10.8 -16.8 -25.9
Proceeds from short-term borrowings 20.1 0.4 15.9
Repayments of short-term borrowings -14.4 -8.9 -7.6
Cash flow from financing activities 119.6 -65.6 -76.6
Change in cash -33.1 6.6 6.3
Cash, cash equivalents and bank
overdrafts at the
beginning of period 114.5 111.2 111.2
Effect of exchange rate changes -1.0 -1.8 -3.0
Cash, cash equivalents and bank
overdrafts at
the end of period 80.4 116.0 114.5
Bank overdrafts at the end of period 13.6 6.5 9.8
Cash and cash equivalents at the end
of period 94.0 122.5 124.3
KEY FIGURES
1-9/2007 1-9/2006 1-12/2006
Equity/share EUR 13.96 13.27 13.72
Interest-bearing net debt MEUR 364.6 93.2 107.5
Total equity/total assets % 40.2 49.0 47.6
Gearing % 41.6 10.9 12.3
Return on equity % 16.7 20.9 20.2
Return on capital employed % 17.6 23.9 23.1
SEGMENT REPORTING
Sales by geographical segment, MEUR 1-9/2007 1-9/2006 1-12/2006
EMEA 1,187 991 1,368
Americas 498 552 720
Asia Pacific 466 356 509
Total 2,151 1,900 2,597
Sales by geographical segment, % 1-9/2007 1-9/2006 1-12/2006
EMEA 55.2 % 52.2 % 52.7 %
Americas 23.2 % 29.1 % 27.7 %
Asia Pacific 21.7 % 18.8 % 19.6 %
Total 100.0 % 100.0 % 100.0 %
Sales, MEUR 1-9/2007 1-9/2006 1-12/2006
Hiab 687 675 914
Kalmar 979 883 1,203
MacGREGOR 487 344 482
Internal sales -2 -1 -2
Total 2,151 1,900 2,597
Operating profit, MEUR 1-9/2007 1-9/2006 1-12/2006
Hiab 54.5 63.3 86.0
Kalmar 78.6 83.5 111.7
MacGREGOR 37.0 26.2 35.9
Corporate administration and other -13.5 -9.0 -11.9
Operating profit from operations 156.6 164.0 221.7
Gain on the sale of property - 17.9 17.8
Total 156.6 181.9 239.5
Operating profit, % 1-9/2007 1-9/2006 1-12/2006
Hiab 7.9 % 9.4 % 9.4 %
Kalmar 8.0 % 9.5 % 9.3 %
MacGREGOR 7.6 % 7.6 % 7.5 %
Cargotec, operating profit from
operations 7.3 % 8.6 % 8.5 %
Cargotec 7.3 % 9.6 % 9.2 %
Orders received, MEUR 1-9/2007 1-9/2006 1-12/2006
Hiab 731 706 946
Kalmar 1,083 955 1,282
MacGREGOR 1,080 535 684
Internal orders received -3 -2 -2
Total 2,892 2,194 2,910
Order book, MEUR 30.9.2007 30.9.2006 31.12.2006
Hiab 255 215 215
Kalmar 684 581 593
MacGREGOR 1,614 798 813
Internal order book 0 0 0
Total 2,552 1,594 1,621
Capital expenditure, MEUR 1-9/2007 1-9/2006 1-12/2006
In fixed assets (excluding
acquisitions) 37.7 30.3 46.1
In leasing agreements 0.3 0.5 0.5
In customer financing 23.5 14.5 22.2
Total 61.5 45.3 68.8
Number of employees at the end
of
period 30.9.2007 30.9.2006 31.12.2006
Hiab 4,405 3,615 3,647
Kalmar 4,431 3,543 3,705
MacGREGOR 2,162 1,109 1,117
Corporate administration 83 46 47
Total 11,081 8,313 8,516
Average number of employees 1-9/2007 1-9/2006 1-12/2006
Hiab 3,981 3,547 3,571
Kalmar 4,159 3,337 3,415
MacGREGOR 1,773 955 994
Corporate administration 68 45 46
Total 9,981 7,884 8,026
NOTES
Taxes in income statement
MEUR 1-9/2007 1-9/2006 1-12/2006
Current year tax expense 42.3 57.0 66.7
Deferred tax expense -0.7 -6.3 -0.3
Tax expense for previous years -6.4 -1.4 -0.5
Total 35.2 49.4 65.9
Commitments
MEUR 30.9.2007 30.9.2006 31.12.2006
Guarantees 2.4 0.2 0.5
Dealer financing 5.6 10.8 8.5
End customer financing 5.9 7.2 6.7
Operating leases 50.0 31.0 38.1
Other contingent liabilities 5.3 3.9 3.9
Total 69.2 53.1 57.7
Fair values of
derivative
financial
instruments
Positive Negative Net fair Net fair Net fair
fair value fair value value value value
MEUR 30.9.2007 30.9.2007 30.9.2007 30.9.2006 31.12.2006
FX forward
contracts, cash
flow
hedges 35.3 15.4 19.9 3.6 18.6
FX forward
contracts,
non-hedge
accounted 9.4 3.9 5.5 1.2 -9.1
Interest rate
swaps, non-hedge
accounted - - - -0.1 0.0
Cross currency
and interest
rate
swaps, cash flow
hedges 0.0 5.2 -5.2 - -0.7
Total 44.7 24.5 20.2 4.7 8.8
Non-current
portion:
FX forward
contracts, cash
flow
hedges 9.8 5.0 4.8 0.0 2.7
Cross currency
and interest
rate
swaps, cash flow
hedges 0.0 5.2 -5.2 - -0.7
Non-current
portion 9.8 10.2 -0.4 0.0 2.0
Current portion 34.9 14.3 20.6 4.7 6.8
Nominal values of derivative financial
instruments
MEUR 30.9.2007 30.9.2006 31.12.2006
FX forward contracts 2,306.4 1,665.3 1,752.7
Interest rate swaps - 10.0 10.0
Cross currency and interest rate swaps 225.7 - 225.7
Total 2,532.1 1,675.3 1,988.4
ACQUISITIONS 2007
In January-September 2007 Cargotec made several acquisitions in line
with its strategy. These acquisitions were individually immaterial.
In January, Hiab made an agreement to acquire the majority of its
Australian importer, BG Crane Pty. Ltd. The acquisition was finalised
in February. In January, Hiab also signed an agreement of intent to
acquire the sales, service and installation units of its current
distributor Berger in the Czech Republic, Slovakia, Hungary and
Croatia. The acquisition was finalised in May. In May, Hiab signed a
contract to acquire the Estonian company Balti ES. The acquisition
was finalised in June. In July, Hiab signed an agreement to acquire
Bay Equipment Repairs Inc, a service company based in Florida, USA.
In January, Kalmar signed agreement to acquire Tagros d.o.o., a
Slovenia-based service company. In January, Kalmar signed also
agreement to acquire Truck och Maskin i Örnsköldsvik AB, a Swedish
company. The acquisition was finalised in February. In February,
Kalmar made an agreement to acquire the assets and business of Port
Equipment Service, Inc., a U.S. based service company. In February, a
contract was signed to acquire the Indian company Indital
Construction Machinery Ltd. The acquisition was finalised in April.
In April, Kalmar signed a contract to gain full control of Kalmar
Asia Pacific Ltd by acquiring the remaining minority share. In
December 2006, a contract was signed to acquire Kalmar's Spanish
distributor Kalmar Espana. The acquisition was finalised in April. In
August, Kalmar made an agreement to acquire Advanced Cargo
Transshipment B.V., an automation and software producer based in the
Netherlands. In September, Kalmar acquired the remaining minority
share (49 percent) of Kalmar India Pvt. Ltd.
In March, MacGREGOR agreed to acquire 90 percent of the Norwegian
Hydramarine AS. The acquisition was finalised in April. In March,
MacGREGOR also signed a contract to acquire 90 percent of the
Singaporean company Plimsoll Corporation Pte Ltd. The acquisition was
finalised in April. The accounting of these two business combinations
includes also the minority share with the redemption obligation. The
debt-free acquisition price of these two business combinations was
approximately EUR 122 million and the goodwill recognised according
to the preliminary calculations was EUR 115 million. In May, a
contract was signed to acquire Vestnorsk Hydraulikkservice AS of
Norway. The acquisition was finalised in June.
Management estimates that the consolidated sales for January
1-September 30, 2007 would have been approximately EUR 2,190 million,
if the acquisitions had occurred on January 1, 2007.
The table below summarises the acquisitions in January-September
2007. The business combinations were accounted as preliminary as the
determination of fair values to be assigned to the assets,
liabilities and contingent liabilities were not yet finalised.
Net fair values of Assets and
identifiable liabilities
assets and immediately
liabilities of before the
the acquired business
businesses combination
MEUR
Other intangible assets 13.4 0.2
Property, plant and equipment 25.3 25.0
Inventories 40.4 40.4
Non-interest-bearing assets 57.2 57.2
Interest-bearing assets and Cash and
cash
equivalents 7.0 7.0
Interest-bearing liabilities -18.2 -18.2
Other non-interest-bearing liabilities -97.4 -92.8
Acquired net assets 27.8 18.9
Transaction price 193.5
Costs related to acquisitions 3.2
Goodwill 168.9
Transaction price paid in cash 166.7
Costs related to acquisitions 3.2
Net cash and cash equivalents in
acquired
businesses -2.5
Total cash outflow from acquisitions 167.3
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 2006. All figures presented have been rounded and
consequently the sum of individual figures may deviate from the
presented sum figure.
Adoption of new or revised IFRS standards and interpretations
starting in January 1, 2007
Starting from January 1, 2007 Cargotec has adopted the following new
and amended standards and interpretations by the IASB published in
2006:
- IFRS 7, Financial Instruments: Disclosures
- IAS 1 Amendment, Capital Disclosures
- IFRIC 10, Interim Financial Reporting and Impairment
- IFRIC 11, IFRS 2 - Group and Treasury Share Transactions
The adoption of the new and revised standards and interpretations
does not have a material effect on the interim financial statements.
Reclassification of balance sheet items
Division of derivative assets and liabilities into current and
non-current has been taken into use in annual financial statements of
2006. Derivative instruments, for which hedge accounting is applied,
and for which the underlying cash flow matures after twelve months,
are included in non-current assets and liabilities, other derivative
instruments are included in current assets and liabilities. In
previous financial statements all derivatives have been included in
current assets and liabilities. The comparative figures of September
30, 2006 have been restated accordingly.
Retrospective adjustment of final accounting of the acquisitions
In financial statements of 2006 the impact of final accounting of the
acquisitions of 2005 were recognised retrospectively for the period
January 1-December 31, 2006. The comparative figures of September 30,
2006 have been restated accordingly.
Share-based payments
The share-based incentive scheme for top management that was approved
by the Board of Directors in 2005 has ended in March 2007. The
members of the scheme received 20,660 Cargotec 2005B-option rights
and in cash 65,000 synthetic option rights. Fair value of a synthetic
option was EUR 28.22 at payment day.
In January 2007, Cargotec published a new share-based incentive
scheme for the company's key managers for the years 2007-2011. The
rewards will be paid during 2009-2012 in both class B shares and
cash. The cash portion is dedicated to cover possible taxes and
tax-related payments resulting from the total reward. Shares
distributed as reward will contain a prohibition to hand over or sell
the shares within one year of the end of an earnings period with the
exception of the final earnings period when no prohibitions are
included. The shares will be lost if the holder leaves the company
before the prohibition period ends. At the end of September 2007, the
earnings period 2007-2008 involves 67 persons. If they were to
receive the maximum number of shares in accordance with the scheme, a
total of 148,925 Cargotec's class B shares, their shareholding
obtained via the program would amount to 0.1 percent of the total
voting rights of Cargotec's class A and B shares. The incentive
scheme is booked and valued according to the Share-based payments
-accounting principle presented in the annual financial statements of
2006.
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 Interest-bearing debt - interest-bearing
net debt = 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 100
employed (%) = 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 period (excluding treasury
shares)
QUARTERLY FIGURES
Cargotec Q3/2007 Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 1,028 949 915 716 603 786
Order book MEUR 2,552 2,244 1,811 1,621 1,594 1,544
Sales MEUR 713 743 694 697 625 661
Operating profit MEUR 52.5 46.2 57.9 57.7 52.1* 61.0
Operating profit % 7.4 6.2 8.3 8.3 8.3* 9.2
Basic
earnings/share EUR 0.55 0.55 0.62 0.61 0.60* 0.64
Hiab Q3/2007 Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 223 244 264 241 207 232
Order book MEUR 255 238 237 215 215 216
Sales MEUR 202 245 240 239 208 237
Operating profit MEUR 13.7 16.6 24.3 22.7 17.4 23.4
Operating profit % 6.8 6.8 10.1 9.5 8.4 9.9
Kalmar Q3/2007 Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 324 367 393 327 258 346
Order book MEUR 684 693 651 593 581 615
Sales MEUR 326 330 324 321 290 309
Operating profit MEUR 27.8 24.0 26.8 28.2 27.5 31.0
Operating profit % 8.5 7.3 8.3 8.8 9.5 10.0
MacGREGOR Q3/2007 Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006
Orders received MEUR 483 338 259 149 139 208
Order book MEUR 1,614 1,314 923 813 798 713
Sales MEUR 187 169 131 138 127 116
Operating profit MEUR 15.0 11.4 10.6 9.7 9.9 10.2
Operating profit % 8.0 6.7 8.1 7.0 7.8 8.8
* Excluding gain on the sale of property
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