- Sequentially stable demand in Hiab and Kalmar, Hiab's orders amounted to
EUR 386 million and Kalmar'sEUR 402 million - MacGregor’s merchant and services businesses' good performance continued, challenges remain in offshore projects
- Hiab's comparable operating profit margin was 16.6 (14.2), Kalmar's 13.5 (13.0) and MacGregor's 6.0 (0.4) percent
- All business areas improved their cash flow, combined cash flow from operations before finance items and taxes totalled
EUR 174 (26) million - Demerger is progressing according to the plan
Continuing operations' January–March 2024 in brief: Comparable operating profit increased
- Orders received increased by 11 percent and totalled
EUR 653 (588) million. - Order book amounted to
EUR 1,799 (31 Dec 2023 : 1,788) million at the end of the period. - Sales increased by 5 percent and totalled
EUR 617 (589) million. - Service sales increased by 3 percent and totalled
EUR 207 (200) million. - Service sales represented 33 (34) percent of consolidated sales.
- Eco portfolio sales decreased by 6 percent and totalled
EUR 174 (186) million. - Eco portfolio sales represented 28 (32) percent of consolidated sales.
- Operating profit was
EUR 70 (42) million, representing 11.3 (7.1) percent of sales. The operating profit includes items affecting comparability worthEUR -2 (-8) million. - Comparable operating profit increased by 43 percent and amounted to
EUR 71 (50) million, representing 11.5 (8.4) percent of sales. - Profit for the period amounted to
EUR 47 (24) million. - Basic earnings per share was
EUR 0.73 (0.37). - Cash flow from operations before finance items and taxes totalled
EUR 174 (26) million.1
Outlook for 2024 unchanged
MacGregor’s comparable operating profit in 2024 to improve from 2023 (EUR 33 million).
Kalmar is presented as discontinued operations due to the proposed demerger
As announced in a stock exchange release on
Due to the proposed Demerger,
Under IFRS 5, the result from discontinued operations is reported separately from continuing operations’ income and expenses in the consolidated statement of income. Comparative periods are restated accordingly. The consolidated balance sheet is not restated. The presented discontinued operations include revenue and operating expenses directly related to the Kalmar business area and other income and costs related to continuing operations that are not expected to continue after the Demerger, or would have been avoided without the Demerger. As a result, financial information presented for
Contrary to the presentation method according to IFRS 5, in the presented segment information, Kalmar's profit is still reported according to the normal calculation method, taking depreciation and amortisation into account.
The restated financial information included in this release is unaudited.
Continuing operations’ key figures
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Orders received | 653 | 588 | 11% | 2,282 |
Service orders received | 205 | 219 | -6% | 787 |
Order book, end of period | 1,799 | 2,078 | -13% | 1,788 |
Sales | 617 | 589 | 5% | 2,519 |
Service sales | 207 | 200 | 3% | 806 |
Service sales, % of sales | 33% | 34% | 32% | |
Eco portfolio sales | 174 | 186 | -6% | 797 |
Eco portfolio sales, % of sales | 28% | 32% | 32% | |
Operating profit | 69.7 | 41.7 | 67% | 236.0 |
Operating profit, % | 11.3% | 7.1% | 9.4% | |
Comparable operating profit | 71.2 | 49.7 | 43% | 236.7 |
Comparable operating profit, % | 11.5% | 8.4% | 9.4% | |
Profit before taxes | 68.2 | 35.4 | 93% | 219.5 |
Profit for the period | 47.1 | 23.7 | 98% | 162.4 |
Basic earnings per share, EUR | 0.73 | 0.37 | 98% | 2.49 |
Discontinued operations’ key figures*
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Orders received | 402 | 471 | -15% | 1,705 |
Service orders received | 156 | 143 | 9% | 545 |
Order book, end of period | 972 | 1,389 | -30% | 1,024 |
Sales | 439 | 485 | -10% | 2,049 |
Service sales | 137 | 146 | -7% | 574 |
Service sales, % of sales | 31% | 30% | 28% | |
Eco portfolio sales | 176 | 160 | 10% | 718 |
Eco portfolio sales, % of sales | 40% | 33% | 35% | |
Operating profit | 49.9 | 62.3 | -20% | 247.8 |
Operating profit, % | 11.4% | 12.8% | 12.1% | |
Comparable operating profit | 65.6 | 62.7 | 5% | 276.7 |
Comparable operating profit, % | 14.9% | 12.9% | 13.5% | |
Profit before taxes | 47.0 | 60.3 | -22% | 233.5 |
Profit for the period | 34.2 | 48.9 | -30% | 186.2 |
Basic earnings per share, EUR | 0.53 | 0.76 | -30% | 2.89 |
*Due to Kalmar business area's classification as discontinued operations, suspended depreciation and amortisation starting from
Cargotec’s key figures*
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Orders received | 1,054 | 1,059 | 0% | 3,987 |
Service orders received | 361 | 362 | 0% | 1,331 |
Order book, end of period | 2,770 | 3,467 | -20% | 2,812 |
Sales | 1,056 | 1,074 | -2% | 4,569 |
Service sales | 343 | 346 | -1% | 1,379 |
Service sales, % of sales | 32% | 32% | 30% | |
Eco portfolio sales | 350 | 346 | 1% | 1,515 |
Eco portfolio sales, % of sales | 33% | 32% | 33% | |
Operating profit | 119.6 | 104.0 | 15% | 483.8 |
Operating profit, % | 11.3% | 9.7% | 10.6% | |
Comparable operating profit | 136.8 | 112.4 | 22% | 513.3 |
Comparable operating profit, % | 13.0% | 10.5% | 11.2% | |
Profit before taxes | 115.3 | 95.7 | 20% | 453.0 |
Cash flow from operations before finance items and taxes | 173.9 | 26.5 | > 100% | 544.2 |
Profit for the period | 81.2 | 72.6 | 12% | 348.7 |
Basic earnings per share, EUR | 1.26 | 1.13 | 12% | 5.38 |
Interest-bearing net debt, end of period | 57 | 393 | -86% | 179 |
Gearing, % | 3.1% | 26.4% | 10.2% | |
Interest-bearing net debt / EBITDA** | 0.1 | 1.0 | 0.3 | |
Return on capital employed (ROCE), last 12 months, % | 21.1% | 7.5% | 19.9% | |
Personnel, end of period | 11,266 | 11,640 | -3% | 11,391 |
*Due to Kalmar business area's classification as discontinued operations, suspended depreciation and amortisation starting from
** Last 12 months’ EBITDA
Cargotec’s President and CEO
The first quarter of 2024 provided a strong start for the year. Hiab, Kalmar and MacGregor all improved their comparable operating profit margins. All businesses combined our comparable operating profit amounted to
In Kalmar, strong profitability continued and demand was stable for the third quarter in a row. Kalmar’s orders received amounted to
In Hiab, the quarter was the sixth quarter in a row with a stable level of demand and orders received amounted to
MacGregor’s merchant and services businesses continued to perform well. Orders received increased by 29 percent to
MacGregor’s core businesses merchant and services performed well and, excluding the offshore business, MacGregor's comparable operating profit margin in the first quarter would have been around 11 percent. However, we still have challenges in approximately 10 loss making offshore pilot projects containing advanced technologies. In addition, MacGregor has an ongoing dispute related to one monopile installation vessel project. We have not been committing to any new pilot projects in the past quarters and we have been executing a restructuring programme to turn around the offshore business. At the end of the first quarter, MacGregor's offshore equipment related order book has been reduced to
All segments combined, we generated a strong operative cash flow of
The planned separation of our core businesses Kalmar and Hiab into two world-leading standalone companies is progressing according to the plan, and we are expecting to reach major milestones this year. The completion date of the demerger is expected to be
Cargotec’s Board of Directors approved the demerger plan on 1 February. Since the approval of the plan, we have proceeded steadily. On the first day of April,
The AGM will also elect both Cargotec’s and Kalmar’s Boards of Directors. There would be no overlap between the Boards of
Due to the high certainty of the transaction, Kalmar is reported as discontinued operations since the beginning of the year. Hence, the combined financial targets set in
Hiab’s and Kalmar’s Capital Market Days will be held on 28 and 29 May and I warmly welcome you to follow the events virtually.
Reporting segments’ key figures
Orders received
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Kalmar | 402 | 471 | -15% | 1,705 |
Hiab | 386 | 380 | 1% | 1,466 |
MacGregor | 267 | 208 | 29% | 816 |
Internal orders | 0 | 0 | 0 | |
1,054 | 1,059 | 0% | 3,987 | |
Adjustment items related to discontinued operations | 402 | 471 | -15% | 1,705 |
Continuing operations, total | 653 | 588 | 11% | 2,282 |
Order book
MEUR | Change | ||
Kalmar | 971 | 1,024 | -5% |
Hiab | 770 | 799 | -4% |
MacGregor | 1,028 | 988 | 4% |
Internal order book | 1 | 1 | |
2,770 | 2,812 | -1% | |
Adjustment items related to discontinued operations | 972 | 1,024 | -5% |
Continuing operations, total | 1,799 | 1,788 | 1% |
Sales
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Kalmar | 439 | 485 | -10% | 2,050 |
Hiab | 415 | 432 | -4% | 1,787 |
MacGregor | 203 | 157 | 29% | 733 |
Internal sales | 0 | 0 | 0 | |
1,056 | 1,074 | -2% | 4,569 | |
Adjustment items related to discontinued operations | 439 | 485 | -10% | 2,049 |
Continuing operations, total | 617 | 589 | 5% | 2,519 |
Operating profit
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Kalmar | 51.0 | 62.8 | -19% | 264.2 |
Hiab | 68.7 | 61.4 | 12% | 252.1 |
MacGregor | 10.7 | -7.4 | > 100% | 31.8 |
Corporate administration and support functions | -10.7 | -12.8 | 16% | -64.4 |
119.6 | 104.0 | 15% | 483.8 | |
Adjustment items related to discontinued operations | 49.9 | 62.3 | -20% | 247.8 |
Continuing operations, total | 69.7 | 41.7 | 67% | 236.0 |
Comparable operating profit
MEUR | Q1/24 | Q1/23 | Change | 2023 |
Kalmar | 59.5 | 63.2 | -6% | 279.4 |
Hiab | 68.7 | 61.4 | 12% | 252.1 |
MacGregor | 12.1 | 0.7 | > 100% | 32.6 |
Corporate administration and support functions | -3.5 | -12.8 | 73% | -50.8 |
136.8 | 112.4 | 22% | 513.3 | |
Adjustment items related to discontinued operations | 65.6 | 62.7 | 5% | 276.7 |
Continuing operations, total | 71.2 | 49.7 | 43% | 236.7 |
Telephone conference for analysts, investors and media
A live international telephone conference for analysts, investors and media will be arranged on the publishing day at
To ask questions, please join the teleconference by registering via the following link:
https://palvelu.flik.fi/teleconference/?id=50049131. After the registration, the conference phone numbers and a conference ID to access the conference will be provided. Questions can be presented during the conference.
The event can also be viewed as a live webcast at https://cargotec.videosync.fi/q1-2024. The conference call will be recorded and an on-demand version of the conference will be published at Cargotec’s website later during the day.
Please note that by dialling to the conference call, the participant agrees that personal information such as name and company name will be collected.
For further information, please contact:
Aki Vesikallio, Vice President, Investor Relations, tel. +358 40 729 1670
1 Includes discontinued operations.
2 The business area 2024 profitability outlook is presented using the same principles which are applied in the 2023 external financial reporting.
Attachment
Cargotec 's interim report January–March 2024
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