Cargotec - Interim report (Q1 and Q3)

Cargotec's January-March 2016 interim report: Profitability improved according to target

CARGOTEC CORPORATION, INTERIM REPORT, 29 APRIL 2016 AT 8.30 AM EEST

Cargotec's January-March 2016 interim report: Profitability improved according
to target

  * Strong order intake in Kalmar and Hiab
  * MacGregor profitability satisfactory considering current market situation
  * Strategy execution proceeding as planned


January-March 2016 in brief

  * Orders received decreased 4 percent and totalled EUR 903 (939) million.
  * Order book amounted to EUR 2,095 (31 Dec 2015: 2,064) million at the end of
    the period.
  * Sales declined 7 percent and totalled EUR 828 (889) million.
  * Operating profit excluding restructuring costs increased 12 percent and was
    EUR 58.5 (52.3) million, representing 7.1 (5.9) percent of sales.
  * Operating profit was EUR 57.7 (51.3) million, representing 7.0 (5.8) percent
    of sales.
  * Cash flow from operations before financial items and taxes totalled EUR
    90.8 (51.6) million.
  * Net income for the period amounted to EUR 39.1 (36.4) million.
  * Earnings per share was EUR 0.61 (0.56).

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                      1-3/2016 1-3/2015 Change   2015
----------------------------------------------------------
 Orders received                903      939    -4%  3,557

 Order book, end of period    2,095    2,469   -15%  2,064

 Sales                          828      889    -7%  3,729

 Operating profit*             58.5     52.3    12%  230.7

 Operating profit, %*           7.1      5.9           6.2

 Operating profit              57.7     51.3    13%  213.1

 Operating profit, %            7.0      5.8           5.7

 Income before taxes           50.9     47.5         186.2

 Cash flow from operations     90.8     51.6         314.6

 Net income for the period     39.1     36.4         142.9

 Earnings per share, EUR       0.61     0.56          2.21

 Net debt, end of period        603      789           622

 Gearing, %                    45.3     62.2          46.4

 Personnel, end of period    11,203   10,698        10,837



*excluding restructuring costs


Cargotec's CEO Mika Vehviläinen:
The start of the year 2016 was strong in Kalmar and Hiab, whereas the market
situation in MacGregor remained challenging, as in the previous year. Despite
the lack of orders for large automation projects, orders for Kalmar reached the
comparison period's level and Hiab's order intake grew eight percent from the
comparison period. Our sales declined seven percent from the comparison period.
As earlier announced, the timing of Kalmar's deliveries lowered its first-
quarter volume. MacGregor's sales were burdened by the challenging market
situation. However, Kalmar's strengthened order book supports our growth target
for the full year. According to target, our profitability improved to seven
percent thanks to Hiab's very strong quarter. Due to restructuring measures
undertaken in 2015, MacGregor's profitability was satisfactory considering the
current market situation.

Execution of our strategy published at the end of 2015 is proceeding according
to plan in all three focus areas: services, digitalisation and leadership
development. In March, we closed the INTERSCHALT acquisition, which is important
for the development of our services and software businesses. In early April, we
organised our first hackathon, where 57 hackers-chosen from numerous volunteers-
invented, among other things, the use of mobile technologies at ports. At the
exhibition for load handling equipment, we also introduced a new virtual way of
controlling a forestry crane remotely from inside a truck cabin. In addition,
during the quarter we launched an internal leadership development programme,
which will continue throughout the year.

Press conference for analysts and media
A press conference for analysts and media, combined with a live international
telephone conference, will be arranged on the publishing day at 10:00 a.m. 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 Eeva Sipilä. The presentation material will be available at
www.cargotec.com by at 10:00 a.m. EEST.

The telephone conference, during which questions may be presented, can be
accessed using the following numbers with access code Cargotec/3057834:
FI: +358 9 6937 9590
SE: +46 8 5065 3937
UK: +44 20 3427 1903
US: +1 646 254 3365

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:
Eeva Sipilä, Executive Vice President and CFO, tel. +358 20 777 4104
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084

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 almost 11,000 people. www.cargotec.com

[HUG#2008233]

Attachments:

Cargotec interim report Q1 2016, pdf.pdf