2009-04-28 08:35:00 CEST
2009-04-28 08:36:27 CEST
REGULATED INFORMATION
Cargotec - Interim report (Q1 and Q3)
Cargotec's Interim Report January-March 2009 - Restructuring of operations continued in a challenging market environment
Cargotec Corporation INTERIM REPORT April 28, 2009, 9.35 a.m. EEST
Cargotec Corporation INTERIM REPORT April 28,
2009, 9.35 a.m. EEST
Highlights
* Orders received totalled EUR 456 (1-3 /2008: 1,155) million.
* The order book was EUR 2,772 (December 31, 2008: 3,054) million
at the end of the reporting period.
* Sales declined 7 percent and were EUR 675 (1-3/2008: 727)
million.
* Operating profit excluding restructuring costs was EUR 15.0
(44.2) million, representing 2.2 (6.1) percent of sales.
* Operating profit was EUR 6.2 (44.2) million. Operating profit
includes EUR 8.8 million of costs from the restructuring
programme announced in September 2008.
* Cash flow from operating activities before financial items and
taxes totalled EUR 59.6 (50.1) million.
* Net income for the period amounted to EUR 1.5 (31.5) million.
* Earnings per share was EUR 0.01 (0.50).
Cargotec's President and CEO Mikael Mäkinen:"Our performance in the first quarter was in line with our
expectations. Delivery volumes were still rather healthy, but order
intake weakened clearly compared to the record-high level during the
comparison period 2008. Cost savings from the restructuring measures
initiated were not yet visible in the result, but we are on the right
track and the results will start to show later this year. In order to
further improve our efficiency and global footprint, we plan to close
a loader crane factory in Meppel, Netherlands, and invest in a new
multi-assembly unit in Poland. In addition, we are taking a big step
in executing Cargotec's One Company strategy with the planned
combination of Hiab and Kalmar sales and services network in EMEA
region" 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 at 11.00 am
(EEST) at Cargotec's head office, Sörnäisten rantatie 23, Helsinki.
The event will be held in English. The interim report will be
presented by President and CEO Mikael Mäkinen. The presentation
material will be available on www.cargotec.com by 11.00 am (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 reply of the conference call will be available until April 30, 2009
noon (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 handling
systems and the related services for the loading and unloading of
goods. Cargotec's brands, Hiab, Kalmar and MacGREGOR, are global
market leaders in their fields and their solutions are used on land
and at sea - wherever cargo is on the move. Extensive services close
to customers ensure the continuous usability of equipment. Cargotec
is the technology leader in its field, its R&D focusing on innovative
solutions that take environmental considerations into account.
Cargotec's sales totalled EUR 3.4 billion in 2008 and it employs
approximately 11,000 people. Cargotec's class B shares are quoted on
the NASDAQ OMX Helsinki.
www.cargotec.com
Operating environment
Demand for load handling equipment was weak in the first quarter,
following the steep decline in 2008. The forestry crane markets were
the most severely affected by weakening market conditions. Decrease
in construction and new truck sales had a direct impact on demand for
load handling equipment.
The markets for container handling equipment were sluggish. A
decrease in the number of containers handled in ports prompted
customers to postpone their planned investments. Of the market areas,
Asia Pacific was slightly more active. Demand for forklift trucks and
terminal tractors fell as a result of the decline in industrial
production and the slowdown in distribution centre operations.
The markets for marine cargo flow systems plunged rapidly, as the
unprecedented shipbuilding boom of the last few years came to an end.
In the first quarter, the markets for both bulker and container ship
equipment were extremely slow as expected. Lower oil prices have led
to the postponement of investments in offshore support vessels.
Overcapacity in shipping has forced ship operators to keep ships
waiting, use ships for storage purposes, and increasingly to scrap
ships. New ship orders were very scarce. However, the number of
marine cargo flow system order cancellations so far has been
moderate.
Demand for services decreased due to the partly low equipment usage
rate, but the markets for services were clearly better than markets
for new equipment. The lower utilisation rate of cargo handling
equipment also affected spare parts sales. While customers continued
to show an interest in more flexible operating models, the
decision-making process has become slower.
Orders Received
Orders received in the first quarter totalled EUR 456 (1,155)
million. The number of orders received fell in all business areas,
due to economic uncertainty. It should also be noted that the order
intake during the comparison period 2008 was record-high in both
Kalmar and MacGREGOR.
+-------------------------------------------------------------------------+
|MEUR |1-3/2009|Share, %|1-3/2008|Share, %|Change, %|1-12/2008|
|-----------------+--------+--------+--------+--------+---------+---------|
|Hiab | 138| 30| 228| 20| -40| 818|
|-----------------+--------+--------+--------+--------+---------+---------|
|Kalmar | 224| 49| 490| 42| -54| 1,566|
|-----------------+--------+--------+--------+--------+---------+---------|
|MacGREGOR | 96| 21| 439| 38| -78| 1,393|
|-----------------+--------+--------+--------+--------+---------+---------|
|Internal orders | -1| | -2| | | -9|
|-----------------+--------+--------+--------+--------+---------+---------|
|Total | 456| 100| 1,155| 100| -61| 3,769|
+-------------------------------------------------------------------------+
Hiab
Of total orders received in the first quarter, Hiab accounted for EUR
138 (228) million. Major part of the orders Hiab secured were small
individual orders, which is typical of its operations. The number of
orders received continued to decline from the end of last year, due
to low demand especially in construction-related customer segments.
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 the first quarter, Kalmar accounted for
EUR 224 (490) million. The economic uncertainty reflected in
customers' investment decisions lengthening decision-making
processes. The lower usage rates of container handling equipment
reduced replacement investments.
During the first quarter, 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 they
will be customised with special attachments designed to the customer.
This equipment will be delivered during April.
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 is designed to meet
US requirements for inbound container scanning in all ports by 2012.
Order for 62 rough terrain container handlers were received from
Tank-Automotive Armament Command (TACOM), which is part of US
Department of Defence. This equipment will be delivered during this
year.
MacGREGOR
Of total orders received, MacGREGOR accounted for EUR 96 (439)
million. The drop in orders received reflected the exceptional
shipbuilding boom strongly slowing down.
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 February, a 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.
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.
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 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 2,772 (December 31, 2008: 3,054) million on
March 31, 2009. Of the total order book, Hiab accounted for EUR 148
(164) million, Kalmar EUR 611 (704) million and MacGREGOR EUR 2,013
(2,187) million. Hiab's order book is about two months, Kalmar's
about six months and MacGREGOR's approximately 18 months long. An
estimated 85 percent of MacGREGOR's order book will be delivered by
the end of 2010. Order cancellations booked in MacGREGOR in the first
quarter totalled EUR 60 million.
+-------------------------------------------------------------------+
| MEUR | 31.3.2009 | Share, | 31.12.2008 | Share, | Change, |
| | | % | | % | % |
|--------------+-----------+--------+------------+--------+---------|
| Hiab | 148 | 5 | 164 | 5 | -10 |
|--------------+-----------+--------+------------+--------+---------|
| Kalmar | 611 | 22 | 704 | 23 | -13 |
|--------------+-----------+--------+------------+--------+---------|
| MacGREGOR | 2,013 | 73 | 2,187 | 72 | -8 |
|--------------+-----------+--------+------------+--------+---------|
| Internal | 0 | | -1 | | |
| order book | | | | | |
|--------------+-----------+--------+------------+--------+---------|
| Total | 2,772 | 100 | 3,054 | 100 | -9 |
+-------------------------------------------------------------------+
Sales
First quarter sales totalled EUR 675 (727) million. Sales declined 7
percent from the previous year mainly due to drop in volumes for load
handling equipment.
+-------------------------------------------------------------------------+
|MEUR | 1-3/2009|Share, %| 1-3/2008|Share, %|Change, %| 1-12/2008|
|-----------+----------+--------+----------+--------+---------+-----------|
|Hiab | 153| 23| 230| 32| -34| 907|
|-----------+----------+--------+----------+--------+---------+-----------|
|Kalmar | 306| 45| 322| 44| -5| 1,515|
|-----------+----------+--------+----------+--------+---------+-----------|
|MacGREGOR | 218| 32| 177| 24| 23| 985|
|-----------+----------+--------+----------+--------+---------+-----------|
|Internal | -1| | -2| | | -8|
|sales | | | | | | |
|-----------+----------+--------+----------+--------+---------+-----------|
|Total | 675| 100| 727| 100| -7| 3,399|
+-------------------------------------------------------------------------+
Hiab's sales declined and were EUR 153 (230) million. This decline is
attributable to the low order intake in the final quarter of 2008 and
during the reporting period. The low sales volume reflects the
general uncertainty in the load handling equipment market and
customers' lack of willingness to invest.
Kalmar's sales totalled EUR 306 (322) million. Delivery volumes were
healthy, thanks to the high order book at the beginning of the year.
MacGREGOR's sales development was favourable and totalled EUR 218
(177) million. Sales growth is a result of strong order intake in
previous years.
Sales from services were on the comparison period level while growth
a year earlier was 9 percent. Sales from services amounted to EUR 187
(191) million, representing 28 (26) percent of total sales. Services
accounted for 29 (22) percent of the first quarter sales at Hiab, 29
(31) percent at Kalmar and 25 (23) percent at MacGREGOR.
Financial Result
First quarter operating profit totalled EUR 6.2 (44.2) million. The
operating profit includes EUR 8.8 (0.0) million of costs booked from
the restructuring actions initiated in September 2008.
Operating profit excluding restructuring costs for the first quarter
was EUR 15.0 (44.2) million, representing 2.2 (6.1) percent of sales.
The operating profit includes a EUR 1.5 (1.4) million cost impact for
the purchase price allocation treatment of acquisitions and EUR 2.0
(0.0) million costs from the On the Move change programme.
Operating profit, particularly in Hiab, was eroded by the low
production capacity utilisation rate. Despite of significant
restructuring actions, Hiab was unable to adjust its operations to
the plunge in demand quickly enough. Furthermore, in Hiab and Kalmar,
product profitability was weakened by deliveries with material costs
still partly on the previous upturn levels. MacGREGOR continued to
show profitable growth.
Net income for the first quarter was EUR 1.5 (31.5) million and
earnings per share EUR 0.01 (0.50).
Balance Sheet, Financing and Cash Flow
On March 31, 2009, net working capital decreased to EUR 289 (December
31, 2008: 324) million. The decrease resulted from strong delivery
volumes in Kalmar and MacGREGOR which reduced work-in-progress as
well as a reduction in component and material inventories. Tangible
assets on the balance sheet were EUR 295 (284) million and intangible
assets EUR 764 (754) million.
Cash flow from operating activities before financial items and taxes
for the first quarter was EUR 59.6 (50.1) million. The dividend
payment totalled EUR 34.4 (61.3) million.
Net debt at the end of the reporting period was EUR 510 (December 31,
2008: 478) million, including EUR 614 (565) million in
interest-bearing debt. The total equity/total assets ratio was 32.8
(33.0) percent while gearing increased to 63.2 (55.3) percent.
Dividend payment in March increased gearing.
Cargotec's financing structure is healthy. Interest-bearing debt
consists mainly of long-term corporate bonds maturing from the year
2012. On March 31, 2009, Cargotec had EUR 635 million of unused
credit facilities.
In order to strengthen its financial structure, Cargotec raised a
five-year Pension Premium Loan (TyEL) of EUR 50 million in March
2009.
Return on equity for the first quarter was 0.7 (14.2) percent and
return on capital employed was 1.9 (13.4) percent.
New Products and Product Development
Research and product development expenditure for the first quarter
was 9.8 (11.2) million, representing 1.5 (1.5) percent of sales.
Despite the weakened market situation, Cargotec continues to invest
in product development.
Hiab launched the first stiff boom crane for the Chinese market. In
addition, a new 30-tonne demountable was introduced in Hiab's
demountable product family.
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 quarter, Kalmar automatic stacking crane system
development concerning the final performance testing phase continued
in Hamburg CTB terminal with good results.
Kalmar was also preparing of commencing 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. All
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 January, MacGREGOR's Offshore division delivered the first subsea
knuckle-jib crane equipped with a system 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 the first quarter, excluding acquisitions and
customer financing, totalled EUR 17.7 (10.2) million. Investments in
customer financing were EUR 10.0 (7.7) million.
Expansion of capacity in Malaysia for container spreaders and in
Texas, USA for rough terrain container handlers, continued during the
reporting period. In addition, the capacity expansion investment in
Narva, Estonia was in the final stage and in Shanghai, China the
doubling of production capacity was finalised.
On the Move Change Programme
In January 2008, Cargotec announced the launch of an extensive On the
Move change programme aiming at a productivity improvement of EUR
80-100 million. The change programme aims to form a basis for
profitable growth through improved customer focus and efficiency. The
implementation of the programme will continue by introducing the new
governance model in management and organisation.
At the beginning of 2009, Cargotec established a common Supply
organisation, which is responsible for sourcing and supply and which
develops the global supply closer to customers as well as towards
lower cost environments. During 2009, Cargotec will implement a
significant change in its supply footprint.
The projects in the first phase have focused on streamlining support
functions and company structure as well as initiating IT projects
that improve efficiency. These projects continue and changes in
company structure will to a large extent be finalised during the
year.
The governance model established in early February is based on three
key functions: solutions, supply and support. These functions develop
Cargotec's processes over business area borders.
Acquisitions
During the period, Cargotec acquired an 18 percent minority of Kalmar
España S.A., after which Cargotec owns all the shares of the company.
Personnel
On March 31, 2009, Cargotec employed 11,467 (11,524) people. Hiab
employed 4,178 (4,592) people, Kalmar 4,516 (4,555), and MacGREGOR
2,495 (2,278). The average number of employees during the first
quarter was 11,649 (11,284).
Of Cargotec's total employees, 20 (22) 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 10 (12)
percent, Asia Pacific 25 (22) percent and the rest of the world 2 (1)
percent of total employees.
In March, negotiations to expedite the shut-down of the Salo
facility, agreed in late 2008, were concluded. These negotiations
resulted in the reduction of 83 employees in March and a gradual
reduction of 33 people by the end of September.
As a result of the restructuring measures initiated in September
2008, the number of personnel decreased by 514 by the end of the
first quarter: by 308 in Hiab, by 196 in Kalmar, and by 10 in
corporate functions. These restructuring measures will lead to a
total personnel reduction of 960; including 270 in Finland and 240 in
Sweden.
Restructuring measures continued in the first quarter of 2009 as
market conditions weakened further. The co-operation negotiations
undertaken involve 260 employees in Hiab, almost 400 in Kalmar, and
65 in MacGREGOR. In addition, a significant number of temporary
lay-offs have been agreed on in several locations.
Annual General Meeting
Decision Taken at Cargotec Corporation's Annual General Meeting
Cargotec Corporation's Annual General Meeting was held on March 5,
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 January 1-December 31, 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 of 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 March 31, 2009 totalled EUR 64,304,280.
The share capital did not change during the reporting period. On
March 31, 2009, the number of class B shares listed on the NASDAQ OMX
Helsinki was 54,778,191 while that of unlisted class A shares
totalled 9,526,089.
Own shares
Cargotec held a total of 2,959,369 Company's own class B shares on
March 31, 2009. The shares were repurchased in 2005-2008.
The Board of Directors decided to exercise the authorisation of the
Annual General Meeting on March 5, 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 March 5, 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. The decision of the
directed bonus issue is based on the authorisation of the Annual
General Meeting of Shareholders held on March 5, 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
A total of 600 new class B shares were subscribed in March 2009 with
2005B option rights. The share capital increase will be entered into
the trade register according to the schedule published earlier, not
later than May 15, 2009. Trading with the new shares together with
the old shares will begin at NASDAQ OMX Helsinki after the
registration.
The subscription period with 2005B option rights ended March 31,
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 have become null
and void and will be removed from their holders' book-entry accounts.
The Company has no valid option programme.
Market Capitalisation and Trading
On March 31, 2009, the total market value of class B shares was EUR
363 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 429 million, excluding treasury
shares held by the Company.
The closing price of class B shares on March 31, 2009 was EUR 7.00.
The average share price for January-March was EUR 7.61 the highest
quotation being EUR 9.54 and the lowest EUR 6.37. In January-March,
approximately 19 million class B shares were traded on the NASDAQ OMX
Helsinki, corresponding to a turnover of approximately EUR 144
million.
Short-term Risks and Uncertainties
The global economic situation is uncertain. Cargotec's operations are
subject to significant short-term risks and uncertainty factors,
related to the effects of the drop in demand for Cargotec's products
and services and the willingness of customers to invest. The fact
that many factors underlying this uncertainty are beyond the control
of the Company merely serves to amplify the challenge confronting
risk analysis.
Prolonged market uncertainty and credit drought increases the risk of
lower, general willingness to invest and consequently demand for
Cargotec's products and services could further decrease. The credit
crunch may also defer investment decisions or lead to postponement
and cancellation of orders. Furthermore, customers' and suppliers'
financial situations will affect the collection of receivables and
the level of bad debt.
Cargotec continues to expect that the potential risk for
cancellations in MacGREGOR is approximately 20 percent of the order
book at the beginning of the year.
The company is currently implementing a large number of restructuring
measures. The efficient implementation of these measures is a
prerequisite for profitability improvement.
Events after the reporting period
Cargotec is proceeding with an investment plan for a multi-assembly
unit (MAU) in Stargard Szczecinski in Northern Poland, to improve its
global supply footprint. Land purchase is estimated to be finalised
in early summer 2009 and production is planned to start initially in
rented premises in the same region during 2009. The new MAU in
Stargard Szczecinski is planned to support the production of a wide
range of Cargotec equipment. Production start in own premises on the
new site is planned for the second quarter in 2010. Estimated cash
flow impact of the investment cost in 2009 is close to EUR 20
million.
Cargotec plans to combine its Hiab and Kalmar sales and services
networks in Europe, Middle-East and Africa (EMEA) during 2009 in a
significant reorganisation and efficiency initiative. The new
operating model will be aligned with Cargotec's One Company approach
with a strong combined customer frontline and service organisation.
With these measures, Cargotec improves further its customer focus and
efficiency. The target is to achieve a running rate of savings of EUR
15 million by the end of 2009, with a further EUR 5 million in 2010.
Due to the prevailing market situation the production of loader
cranes located in Meppel in the Netherlands is planned to be closed
during 2009. The closure is part of developing the global supply
presence. The plan is aligned with earlier announced actions to
consolidate crane manufacturing and to adjust Hiab's production
capacity in Europe. Cargotec has initiated co-operation negotiations
regarding the possible layoffs of factory's some 100 employees.
The initiated reorganisation in and the factory closure are estimated
to create restructuring charges of EUR 25 million, the majority in
2009.
Outlook
The economic situation and investment activity continue to be
uncertain, which makes it difficult to estimate demand for Cargotec's
products. This is further complicated by possible order postponements
and cancellations. Sales in MacGREGOR are expected to grow in 2009.
Sales of Hiab and Kalmar are expected to clearly decline from 2008
level. A total of approximately EUR 40 million of restructuring costs
improving competitiveness are expected to be booked in 2009, of which
EUR 9 million was booked in the first quarter.
Financial Calendar
Interim Report January-June 2009 on Monday July 20, 2009
Interim Report January-September 2009 on Thursday October 22, 2009
Helsinki, April 28, 2009
Cargotec Corporation
Board of Directors
This interim report is unaudited.
Condensed Consolidated Statement of Income
MEUR 1-3/2009 1-3/2008 1-12/2008
Sales 674.9 726.7 3,399.2
Cost of goods sold -565.6 -582.5 -2,762.5
Gross profit 109.3 144.2 636.7
Gross profit, % 16.2 % 19.8 % 18.7 %
Costs and expenses -94.4 -100.0 -444.5
Restructuring costs -8.8 - -19.1
Share of associated companies'
and joint ventures' income 0.1 0.0 0.6
Operating profit 6.2 44.2 173.7
Operating profit, % 0.9 % 6.1 % 5.1 %
Financing income and expenses -5.3 -4.8 -28.5
Income before taxes 0.9 39.4 145.2
Income before taxes, % 0.1 % 5.4 % 4.3 %
Taxes 0.6 -7.9 -24.4
Net income for the period 1.5 31.5 120.8
Net income for the period, % 0.2 % 4.3 % 3.6 %
Net income for the period
attributable to:
Equity holders of the Company 0.7 30.9 118.4
Minority interest 0.8 0.5 2.4
Total 1.5 31.5 120.8
Earnings per share for profit
attributable
to the equity holders of the
Company:
Basic earnings per share, EUR 0.01 0.50 1.91
Diluted earnings per share, EUR 0.01 0.50 1.91
Consolidated Statement of Comprehensive Income
Net income for the period 1.5 31.5 120.8
Gain/loss on cash flow hedges -55.5 35.2 -131.1
Gain/loss on cash flow hedges
transferred to Income Statement 22.6 -3.6 29.2
Translation differences 6.6 -10.3 9.8
Taxes relating to components of
other comprehensive income 4.9 -8.9 27.9
Comprehensive income for the
period -19.9 43.9 56.6
Comprehensive income for the
period attributable to:
Equity holders of the Company -19.9 43.1 53.2
Minority interest 0.0 0.8 3.4
Total -19.9 43.9 56.6
The consolidated comprehensive income is presented according to
revised IAS 1.
Condensed Consolidated Statement of Financial Position
ASSETS
MEUR 31.3.2009 31.3.2008 31.12.2008
Non-current assets
Intangible assets 764.0 762.6 754.1
Tangible assets 295.0 251.5 283.5
Loans receivable and other
interest-bearing assets 1) 7.6 5.5 7.7
Investments 9.0 7.8 9.0
Non-interest-bearing assets 146.0 86.9 160.3
Total non-current assets 1,221.5 1,114.3 1,214.6
Current assets
Inventories 858.3 737.1 881.9
Loans receivable and other
interest-bearing assets 1) 0.2 0.5 0.2
Accounts receivable and other
non-interest-bearing
assets 719.9 687.2 863.0
Cash and cash equivalents 1) 95.7 124.9 79.2
Total current assets 1,674.2 1,549.7 1,824.3
Total assets 2,895.6 2,663.9 3,038.9
EQUITY AND LIABILITIES
MEUR 31.3.2009 31.3.2008 31.12.2008
Equity
Shareholders' equity 798.8 868.8 855.3
Minority interest 8.6 6.9 9.1
Total equity 807.4 875.8 864.4
Non-current liabilities
Loans 1) 499.8 421.9 440.2
Deferred tax liabilities 38.6 51.9 43.0
Provisions 25.5 37.3 34.6
Pension benefit and other
non-interest-bearing liabilities 142.6 76.2 144.7
Total non-current liabilities 706.5 587.3 662.5
Current liabilities
Loans 1) 113.8 40.1 114.6
Provisions 72.7 66.8 70.4
Accounts payable and other
non-interest-bearing
liabilities 1,195.3 1,094.0 1,327.0
Total current liabilities 1,381.8 1,200.8 1,512.0
Total equity and liabilities 2,895.6 2,663.9 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, totalling EUR 0.3 (December 31, 2008: 10.2) million
on March 31, 2009.
Consolidated Statement of Changes in Equity
Attributable to the equity holders of the company
Share Trans- Retai- Mino-
Share pre- lation Fair ned rity
ca- mium diffe- value earn- inte- Total
MEUR pital account rences reserves ings Total rest 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* - - -10.3 22.5 30.9 43.1 0.8 43.9
Dividends
paid -65.3 -65.3 -65.3
Shares
subscribed
with options 0.0 0.1 0.1 0.1
Acquisition
of
treasury
shares 0.0 0.0 0.0
Share-based
incentives,
value
of received
services* 0.3 0.3 0.3
Equity on
31.3.2008 64.2 97.5 -39.9 42.5 704.6 868.8 6.9 875.8
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* - - 6.7 -27.3 0.7 -19.9 0.0 -19.9
Dividends
paid -36.7 -36.7 -36.7
Share-based
incentives,
value
of received
services * 0.0 0.0 0.0
Other changes - -0.5 -0.5
Equity on
31.3.2009 64.3 98.0 -13.7 -81.9 732.1 798.8 8.6 807.4
* Net of tax
Condensed Consolidated Statement of Cash Flow
MEUR 1-3/2009 1-3/2008 1-12/2008
Net income for the period 1.5 31.5 120.8
Depreciation 14.6 12.5 60.1
Other adjustments 4.6 12.7 52.3
Change in working capital 38.9 -6.5 -99.4
Cash flow from operations 59.6 50.1 133.8
Cash flow from financial items and
taxes -30.3 3.6 -40.1
Cash flow from operating activities 29.4 53.7 93.7
Acquisitions -2.8 -14.8 -46.5
Cash flow from investing activities,
other items -23.8 -17.1 -108.6
Cash flow from investing activities -26.5 -31.9 -155.1
Acquisition of treasury shares - 0.0 -23.6
Proceeds from share subscriptions 0.0 0.4 0.7
Dividends paid -34.4 -61.3 -66.6
Proceeds from long-term borrowings 50.0 0.7 0.7
Repayments of long-term borrowings -2.0 -0.8 -2.4
Proceeds from short-term borrowings 8.5 6.0 61.3
Repayments of short-term borrowings -5.7 -14.5 -32.0
Cash flow from financing activities 16.3 -69.5 -61.9
Change in cash 19.1 -47.7 -123.3
Cash, cash equivalents and bank
overdrafts at the beginning of period 45.9 167.5 167.5
Effect of exchange rate changes 0.3 -1.1 1.7
Cash, cash equivalents and bank
overdrafts at the end of period 65.3 118.7 45.9
Bank overdrafts at the end of period 30.4 6.1 33.3
Cash and cash equivalents at the end
of period 95.7 124.9 79.2
Key Figures
1-3/2009 1-3/2008 1-12/2008
Equity/share EUR 13.02 13.94 13.95
Interest-bearing net debt MEUR 510.3 367.1 477.8
Total equity/total assets % 32.8 37.5 33.0
Gearing % 63.2 41.9 55.3
Return on equity % 0.7 14.2 13.7
Return on capital employed % 1.9 13.4 12.7
Segment Reporting
Sales by geographical segment,
MEUR 1-3/2009 1-3/2008 1-12/2008
EMEA 366 441 1 901
Americas 113 116 556
Asia Pacific 196 171 942
Total 675 727 3,399
Sales by geographical segment, % 1-3/2009 1-3/2008 1-12/2008
EMEA 54.2 % 60.6 % 55.9 %
Americas 16.8 % 15.9 % 16.4 %
Asia Pacific 29.0 % 23.5 % 27.7 %
Total 100.0 % 100.0 % 100.0 %
Sales, MEUR 1-3/2009 1-3/2008 1-12/2008
Hiab 153 230 907
Kalmar 306 322 1,515
MacGREGOR 218 177 985
Internal sales -1 -2 -8
Total 675 727 3,399
Operating profit, MEUR 1-3/2009 1-3/2008 1-12/2008
Hiab -8.1 * 17.7 49.4 **
Kalmar 13.6 * 19.4 89.6 **
MacGREGOR 18.4 11.9 83.6
Corporate administration and
support functions -9.0 -4.8 -29.8
Operating profit from operations 15.0 * 44.2 192.8 **
Restructuring costs -8.8 - -19.1
Total 6.2 44.2 173.7
Operating
profit, % 1-3/2009 1-3/2008 1-12/2008
Hiab -5.3 % * 7.7 % 5.4 % **
Kalmar 4.5 % * 6.0 % 5.9 % **
MacGREGOR 8.5 % 6.7 % 8.5 %
Cargotec,
operating profit
from operations 2.2 % * 6.1 % 5.7 % **
Cargotec 0.9 % 6.1 % 5.1 %
* Excluding restructuring costs of which business segment Hiab
accounted for EUR 4.9 million, Kalmar for
EUR 3.4 million and Corporate administration and support functions
for EUR 0.5 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 1-3/2009 1-3/2008 1-12/2008
Hiab 138 228 818
Kalmar 224 490 1,566
MacGREGOR 96 439 1,393
Internal orders received -1 -2 -9
Total 456 1,155 3,769
Order book, MEUR 31.3.2009 31.3.2008 31.12.2008
Hiab 148 253 164
Kalmar 611 824 704
MacGREGOR 2,013 2,211 2,187
Internal order book 0 -1 -1
Total 2,772 3,287 3,054
Capital expenditure, MEUR 1-3/2009 1-3/2008 1-12/2008
In fixed assets (excluding
acquisitions) 17.7 10.1 75.7
In leasing agreements 0.0 0.1 1.1
In customer financing 10.0 7.7 35.9
Total 27.7 17.8 112.8
Number of employees at the end
of period 31.3.2009 31.3.2008 31.12.2008
Hiab 4,178 4,592 4,308
Kalmar 4,516 4,555 4,766
MacGREGOR 2,495 2,278 2,577
Corporate administration and
support functions 278 99 175
Total 11,467 11,524 11,826
Average number of employees 1-3/2009 1-3/2008 1-12/2008
Hiab 4,181 4,419 4,509
Kalmar 4,679 4,513 4,680
MacGREGOR 2,531 2,257 2,449
Corporate administration and
support functions 258 95 139
Total 11,649 11,284 11,777
Notes
Taxes in income
statement
MEUR 1-3/2009 1-3/2008 1-12/2008
Current year tax expense 3.5 13.8 44.3
Change in deferred tax
assets and liabilities 0.9 -1.4 -9.7
Tax expense for previous
years -5.0 -4.5 -10.2
Total -0.6 7.9 24.4
Commitments
MEUR 31.3.2009 31.3.2008 31.12.2008
Guarantees 0.2 0.7 0.2
Dealer financing 0.2 1.7 0.2
End customer financing 11.2 6.7 11.5
Operating leases 48.5 45.5 48.0
Off balance sheet
investment commitments - 0.8 -
Other contingent
liabilities 3.9 3.6 4.0
Total 63.9 59.0 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 Net Net
fair fair fair fair fair
value value value value value
MEUR 31.3.2009 31.3.2009 31.3.2009 31.3.2008 31.12.2008
FX forward
contracts, cash
flow
hedges 64.1 191.9 -127.8 41.6 -119.4
FX forward
contracts,
non-hedge
accounted 39.5 6.7 32.8 -0.2 67.2
Cross currency and
interest rate
swaps, cash flow
hedges 20.6 - 20.6 -17.1 23.7
Total 124.2 198.7 -74.4 24.3 -28.4
Non-current
portion:
FX forward
contracts, cash
flow
hedges 20.8 77.5 -56.7 10.0 -53.2
Cross currency and
interest rate
swaps, cash flow
hedges 20.6 - 20.6 -17.1 23.7
Non-current
portion 41.4 77.5 -36.1 -7.1 -29.5
Current portion 82.8 121.2 -38.4 31.4 1.1
Nominal values of derivative financial instruments
MEUR 31.3.2009 31.3.2008 31.12.2008
FX forward contracts 3,312.3 2,927.0 3,617.5
Cross currency and interest rate
swaps 225.7 225.7 225.7
Total 3,538.0 3,152.7 3,843.3
Acquisitions
In March, Cargotec acquired the 18 percent minority share of Kalmar
España, S.A. After acquisition, Cargotec has
100% ownership of the company's shares.
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 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 the period (excluding
treasury shares)
* Including cross currency hedging of the USD 300 million Private
Placement corporate bond.
Quarterly Figures
Cargotec Q1/2009 Q4/2008 Q3/2008 Q2/2008 Q1/2008
Orders received MEUR 456 633 967 1,013 1,155
Order book MEUR 2,772 3,054 3,486 3,360 3,287
Sales MEUR 675 924 848 901 727
Operating profit MEUR 15.0 * 35.9 ** 49.6 63.1 44.2
Operating profit % 2.2 * 3.9 ** 5.8 7.0 6.1
Basic
earnings/share EUR 0.01 0.14 0.66 0.61 0.50
Hiab Q1/2009 Q4/2008 Q3/2008 Q2/2008 Q1/2008
Orders received MEUR 138 157 194 238 228
Order book MEUR 148 164 229 238 253
Sales MEUR 153 216 209 253 230
Operating profit MEUR -8.1 * 3.7 ** 9.5 18.5 17.7
Operating profit % -5.3 * 1.7 ** 4.5 7.3 7.7
Kalmar Q1/2009 Q4/2008 Q3/2008 Q2/2008 Q1/2008
Orders received MEUR 224 348 365 363 490
Order book MEUR 611 704 778 790 824
Sales MEUR 306 413 386 396 322
Operating profit MEUR 13.6 * 12.1 ** 25.8 32.3 19.4
Operating profit % 4.5 * 2.9 ** 6.7 8.2 6.0
MacGREGOR Q1/2009 Q4/2008 Q3/2008 Q2/2008 Q1/2008
Orders received MEUR 96 129 411 415 439
Order book MEUR 2,013 2,187 2,480 2,334 2,211
Sales MEUR 218 298 256 254 177
Operating profit MEUR 18.4 30.7 19.1 21.9 11.9
Operating profit % 8.5 10.3 7.5 8.6 6.7
* Excluding restructuring costs of which business segment Hiab
accounted for EUR 4.9 million, Kalmar for
EUR 3.4 million and Corporate administration and support functions
for EUR 0.5 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.
© 2024 Nasdaq, Inc. All Rights Reserved |