Cargotec - Half Year financial report

Cargotec's January-June 2016 interim report: business developed favourably

CARGOTEC CORPORATION, INTERIM REPORT, 20 JULY 2016 AT 12.00 NOON EEST

Cargotec's January-June 2016 interim report: business developed favourably
- Profitability improved in Kalmar and Hiab
- MacGregor profitability satisfactory considering current market situation
- Strategy execution proceeding as planned

April-June 2016 in brief

  * Orders received decreased 7 percent and totalled EUR 825 (887) million.
  * Order book amounted to EUR 2,033 (31 Dec 2015: 2,064) million at the end of
    the period.
  * Sales declined 4 percent and totalled EUR 898 (936) million.
  * Operating profit excluding restructuring costs increased 12 percent and was
    EUR 64.8 (58.0) million, representing 7.2 (6.2) percent of sales.
  * Operating profit was EUR 62.6 (54.9) million, representing 7.0 (5.9) percent
    of sales.
  * Cash flow from operations before financial items and taxes totalled EUR
    55.8 (101.3) million.
  * Net income for the period amounted to EUR 40.4 (27.4) million.
  * Earnings per share was EUR 0.63 (0.43).


January-June 2016 in brief

  * Orders received decreased 5 percent and totalled EUR 1,728 (1,826) million.
  * Sales declined 5 percent and totalled EUR 1,727 (1,825) million.
  * Operating profit excluding restructuring costs increased 12 percent and was
    EUR 123.3 (110.3) million, representing 7.1 (6.0) percent of sales.
  * Operating profit was EUR 120.2 (106.2) million, representing 7.0 (5.8)
    percent of sales.
  * Cash flow from operations before financial items and taxes totalled EUR
    146.6 (152.8) million.
  * Net income for the period amounted to EUR 79.6 (63.9) million.
  * Earnings per share was EUR 1.23 (0.99).



Outlook for 2016 unchanged
Cargotec's 2016 sales are expected to be at the 2015 level (EUR 3,729 million)
or slightly below. Operating profit excluding restructuring costs for 2016 is
expected to improve from 2015 (EUR 230.7 million).

Cargotec's key figures
 MEUR                  4-6/2016 4-6/2015 Change 1-6/2016 1-6/2015 Change   2015
-------------------------------------------------------------------------------
 Orders received            825      887    -7%    1,728    1,826    -5%  3,557

 Order book, end of                        -13%                     -13%
 period                   2,033    2,342           2,033    2,342         2,064

 Sales                      898      936    -4%    1,727    1,825    -5%  3,729

 Operating profit*         64.8     58.0    12%    123.3    110.3    12%  230.7

 Operating profit, %*       7.2      6.2             7.1      6.0           6.2

 Operating profit          62.6     54.9    14%    120.2    106.2    13%  213.1

 Operating profit, %        7.0      5.9             7.0      5.8           5.7

 Income before taxes       57.5     46.3           108.3     93.8         186.2

 Cash flow from
 operations                55.8    101.3           146.6    152.8         314.6

 Net income for the
 period                    40.4     27.4            79.6     63.9         142.9

 Earnings per share,
 EUR                       0.63     0.43            1.23     0.99          2.21

 Net debt, end of
 period                     619      735             619      735           622

 Gearing, %                45.5     56.9            45.5     56.9          46.4

 Personnel, end of                10,730                   10,730
 period                  11,422                   11,422                 10,837



*excluding restructuring costs


Cargotec's CEO Mika Vehviläinen:
Our business developed favourably during the second quarter. Orders for Kalmar
decreased slightly from the comparison period's level, while Hiab's order intake
grew eight percent from the comparison period. It was pleasing to see service
orders increase 12 percent compared to the comparison period. Profitability
continued to improve in Kalmar and Hiab compared to the previous year. On the
other hand, the market situation in MacGregor remained challenging. At MacGregor
we have already begun implementing new measures to lower our cost level through
actions taken primarily in Norway as well as by merging two divisions.

The execution of our strategy published at the end of 2015 is proceeding in all
three focus areas: services, digitalisation and leadership development. Business
areas have continued their service development efforts during the quarter, and
we have increased resources for digitalisation initiatives. For example, we
launched the first products based on our common Cargotec IoT Cloud, a shared
connectivity and analytics platform for all our businesses, through which we can
provide more efficient analytics to our customers based on equipment data. The
INTERSCHALT integration is proceeding as planned and we are getting positive
customer feedback about the combined offering of XVELA's maritime industry
software and the INTERSCHALT software. Our internal leadership development
programme was launched during the last quarter and has gone forward according to
plans.

Alternative performance measures (APMs) used in Cargotec's financial reporting

New ESMA (European Securities and Markets Authority) guidelines on Alternative
Performance Measures (Alternative performance measure (APM) = financial measure
other
than financial measure defined or specified in IFRSs) are effective as of 3 July
2016. The new guidelines have had no impact on performance measures used by
Cargotec, but in accordance with the guidelines, Cargotec publishes the
explanation of use, definitions as well as reconciliations of its APMs to IFRS
financial statements.

APMs are used at Cargotec to better convey the underlying business performance
and to enhance comparability from period to period. APMs are not substituting
the performance measures stipulated by IFRS, but are instead reported as
complementary information.

The alternative performance measures used by Cargotec are:

  * Operating profit excluding restructuring costs= Operating profit +
    restructuring costs
  * Operating profit excluding restructuring costs, % of sales = (Operating
    profit + restructuring costs) / Sales * 100
  * Interest-bearing net-debt = Interest-bearing debt - interest-bearing assets
    +/- Foreign-currency hedge of corporate bonds

Restructuring costs include restructuring provisions, asset impairments and
disposals, expenses for vacant premises and other restructuring-related expenses
in case of a significant restructuring programme of Cargotec or its business
area. In the interim report, the reconciliation of operating profit excluding
restructuring costs to operating profit of the statement of income is presented
in note 3. Reconciliation of interest-bearing net debt to interest-bearing
liabilities and assets is presented in note 6.

Press conference for analysts and media
A press conference for analysts and media, combined with a live international
telephone conference, will be arranged on the publishing day at 2:00 p.m. EEST
at Cargotec's head office, Porkkalankatu 5, Helsinki. The event will be held in
English. The report will be presented by CEO Mika Vehviläinen and Executive Vice
President, CFO Mikko Puolakka. The presentation material will be available at
www.cargotec.com by 2:00 p.m. EEST.

The telephone conference, during which questions may be presented, can be
accessed using the following numbers with access code Cargotec/101647:
FI: +358 9 6937 9590
SE:  +46 8 5033 6539
UK: +44 20 3427 1914
US: +1 646 254 3364

The event can also be viewed as a live webcast at www.cargotec.com. An on-demand
version of the conference will be published at Cargotec's website later during
the day.


For further information, please contact:
Mikko Puolakka, Executive Vice President and CFO, tel. +358 20 777 4105

Cargotec (Nasdaq Helsinki: CGCBV) is a leading provider of cargo and load
handling solutions with the goal of becoming the leader in intelligent cargo
handling. Cargotec's business areas Kalmar, Hiab and MacGregor offer products
and services that ensure our customers a continuous, reliable and sustainable
performance. Cargotec's sales in 2015 totalled approximately EUR 3.7 billion and
it employs over 11,000 people. www.cargotec.com

[HUG#2029590]

Attachments:

Cargotec Q2 2016 interim report, pdf.pdf