CARGOTEC CORPORATION, 2021 HALF YEAR FINANCIAL REPORT, 28 JULY 2021 AT
Cargotec’s half year financial report January–June 2021: Record-high orders
- Orders received increased by 101 percent and totalled
EUR 1,276 million in the second quarter - Service orders received increased by 27 percent in the second quarter
- Excellent quarter for Hiab
- Profitability improved
- Global logistics and supply chain challenges affected delivery times
April–June 2021 in brief: Strong order book
- Orders received increased by 101 percent and totalled
EUR 1,276 (637) million. - Order book amounted to
EUR 2,606 (31 Dec 2020 : 1,824) million at the end of the period. - Sales increased by 13 percent and totalled
EUR 853 (756) million. - Service sales increased by 12 percent and totalled
EUR 268 (239) million. - Service and software sales represented 36 (37) percent of consolidated sales.
- Operating profit was
EUR 45 (-20) million, representing 5.2 (-2.6) percent of sales. Operating profit includes items affecting comparability worthEUR -25 (-69) million. - Comparable operating profit increased by 41 percent and amounted to
EUR 70 (49) million, representing 8.2 (6.5) percent of sales. - Cash flow from operations before financial items and taxes totalled
EUR 13 (4) million. - Net income for the period amounted to
EUR 26 (-36) million. - Earnings per share was
EUR 0.40 (-0.56).
January–June 2021 in brief: Operating profit increased
- Orders received increased by 69 percent and totalled
EUR 2,392 (1,417) million. - Order book amounted to
EUR 2,606 (31 Dec 2020 : 1,824) million at the end of the period. - Sales decreased by 2 percent and totalled
EUR 1,583 (1,614) million. - Service sales increased by 5 percent and totalled
EUR 523 (499) million. - Service and software sales represented 38 (36) percent of consolidated sales.
- Operating profit was
EUR 69 (7) million, representing 4.4 (0.4) percent of sales. Operating profit includes items affecting comparability worthEUR -52 (-88) million. - Comparable operating profit increased by 28 percent and amounted to
EUR 121 (95) million, representing 7.7 (5.9) percent of sales. - Cash flow from operations before financial items and taxes totalled
EUR 64 (26) million. - Net income for the period amounted to
EUR 35 (-25) million. - Earnings per share was
EUR 0.55 (-0.39).
Outlook for 2021
*The comparable operating profit has been specified from
Cargotec’s key figures
MEUR | Q2/21 | Q2/20 | Change | Q1-Q2/21 | Q1-Q2/20 | Change | 2020 |
Orders received | 1,276 | 637 | > 100% | 2,392 | 1,417 | 69% | 3,121 |
Service orders received | 284 | 224 | 27% | 583 | 493 | 18% | 987 |
Order book, end of period | 2,606 | 1,822 | 43% | 2,606 | 1,822 | 43% | 1,824 |
Sales | 853 | 756 | 13% | 1,583 | 1,614 | -2% | 3,263 |
Service sales | 268 | 239 | 12% | 523 | 499 | 5% | 1,005 |
Software sales* | 37 | 43 | -15% | 73 | 83 | -13% | 166 |
Service and software sales, % of sales | 36% | 37% | 38% | 36% | 36% | ||
Eco portfolio sales | 173 | 187 | -7% | 320 | 378 | -15% | 777 |
Eco portfolio sales, % of sales | 20% | 25% | 20% | 23% | 24% | ||
Operating profit | 44.8 | -19.5 | > 100 % | 69.3 | 7.0 | > 100% | 70.4 |
Operating profit, % | 5.2% | -2.6% | 4.4% | 0.4% | 2.2% | ||
Comparable operating profit | 69.6 | 49.4 | 41% | 121.2 | 94.7 | 28% | 226.7 |
Comparable operating profit, % | 8.2% | 6.5% | 7.7% | 5.9% | 6.9% | ||
Income before taxes | 37.5 | -28.1 | > 100 % | 55.8 | -8.4 | > 100% | 34.5 |
Cash flow from operations before financing items and taxes | 13.1 | 3.6 | > 100 % | 64.3 | 26.4 | > 100% | 296.4 |
Net income for the period | 25.8 | -36.5 | > 100 % | 35.4 | -25.1 | > 100% | 8.1 |
Earnings per share, EUR | 0.40 | -0.56 | > 100 % | 0.55 | -0.39 | > 100% | 0.13 |
Interest-bearing net debt, end of period | 773 | 846 | -9% | 773 | 846 | -9% | 682 |
Gearing, % | 60.0% | 63.8% | 60.0% | 63.8% | 52.4% | ||
Interest-bearing net debt / EBITDA** | 3.0 | 3.6 | 3.0 | 3.6 | 3.2 | ||
Return on capital employed (ROCE), last 12 months, % | 5.3% | 3.4% | 5.3% | 3.4% | 2.8% | ||
Personnel, end of period | 11,496 | 12,158 | -5% | 11,496 | 12,158 | -5% | 11,552 |
*Software sales include the strategic business unit Navis and automation software
**Last 12 months’ EBITDA
In the calculation of the balance sheet related key figures the assets held for sale and liabilities related to assets held for sale are included in the applicable account groups, even though in the balance sheet they are presented on one row.
Cargotec’s CEO
The second quarter of 2021 was significantly different from the comparison period. The demand for our solutions was further increased by the market recovery after last year's difficult pandemic situation and the increase in economic activity that started at the end of 2020. Our main demand drivers - number of containers handled at ports globally, construction activity, and the level of new vessel contracting - were all growing strongly in early 2021.
Our orders received more than doubled, reaching an all-time record of almost
Our order book increased by 43 percent from the end of 2020, driven by high orders in Kalmar mobile equipment and Hiab. We estimate that, in addition to the strong market, high demand is due to the pent-up demand from last year as well as customers preparing for longer delivery times and price increases.
Our sales increased by 13 percent from the comparison period, although global logistics challenges and component shortages in the supply chain have extended our delivery times and limited our ability to meet the increasing demand.
The economic recovery from the pandemic is also reflected in the prices of raw materials, components and freight transportation. We are prepared to respond to the situation with price increases and active cooperation with our suppliers. Challenges in the supply chain and the related price increases mainly affected Kalmar’s results. Cargotec’s comparable operating profit increased by 41 percent, driven by higher comparable operating profit in Hiab. Comparable operating profit increased also in MacGregor while Kalmar's comparable operating profit was at the comparison period’s level.
The impact of extended delivery times and increased costs will also be seen in the next quarter, but we expect the situation to improve towards the end of the year.
Our service business developed strongly in the second quarter with service orders received increasing by 27 percent compared to the comparison period. Service sales grew by 12 percent and, together with the software business, constituted 36 percent of our total sales.
After the reporting period, in early July, we announced that we had completed the sale of the Navis business to
On
During this spring, we have refined our strategy and during the second half of the year we will continue our determined investments in sustainable and profitable growth. Our key business driver is to reduce the carbon footprint of the logistics industry. We have continued our product development investments and, during the end of this year, Kalmar’s entire portfolio becomes available as electrically powered versions.
Reporting segments’ key figures
Orders received
MEUR | Q2/21 | Q2/20 | Change | Q1-Q2/21 | Q1-Q2/20 | Change | 2020 |
Kalmar | 600 | 293 | > 100% | 1,129 | 627 | 80% | 1,401 |
Hiab | 508 | 223 | > 100% | 933 | 519 | 80% | 1,210 |
MacGregor | 169 | 120 | 41% | 331 | 271 | 22% | 511 |
Internal orders | 0 | 0 | 0 | 0 | -1 | ||
Total | 1,276 | 637 | > 100% | 2,392 | 1,417 | 69% | 3,121 |
Order book
MEUR | Change | ||||||
Kalmar | 1,258 | 842 | 49% | ||||
Hiab | 831 | 503 | 65% | ||||
MacGregor | 517 | 480 | 8% | ||||
Internal order book | 0 | 0 | |||||
Total | 2,606 | 1,824 | 43% |
Sales
MEUR | Q2/21 | Q2/20 | Change | Q1-Q2/21 | Q1-Q2/20 | Change | 2020 |
Kalmar | 382 | 350 | 9% | 705 | 754 | -7% | 1,529 |
Hiab | 316 | 243 | 30% | 603 | 544 | 11% | 1,094 |
MacGregor | 156 | 163 | -4% | 275 | 315 | -13% | 642 |
Internal sales | 0 | 0 | 0 | 0 | -1 | ||
Total | 853 | 756 | 13% | 1,583 | 1,614 | -2% | 3,263 |
Operating profit
MEUR | Q2/21 | Q2/20 | Change | Q1-Q2/21 | Q1-Q2/20 | Change | 2020 |
Kalmar | 28.2 | -13.1 | > 100% | 46.1 | 11.0 | > 100% | 61.8 |
Hiab | 40.0 | 18.0 | > 100% | 73.2 | 46.4 | 58% | 97.3 |
MacGregor | -1.0 | -26.8 | 96% | -8.9 | -34.9 | 74% | -48.2 |
Corporate administration and support functions | -22.5 | 2.4 | < -100% | -41.1 | -15.5 | < -100% | -40.7 |
Total | 44.8 | -19.5 | > 100% | 69.3 | 7.0 | > 100% | 70.4 |
Comparable operating profit
MEUR | Q2/21 | Q2/20 | Change | Q1-Q2/21 | Q1-Q2/20 | Change | 2020 |
Kalmar | 33.4 | 32.8 | 2% | 53.6 | 60.7 | -12% | 126.1 |
Hiab | 45.4 | 24.9 | 82% | 84.1 | 55.6 | 51% | 128.8 |
MacGregor | 3.1 | -0.7 | > 100% | 6.4 | -3.1 | > 100% | 6.6 |
Corporate administration and support functions | -12.3 | -7.7 | -59% | -22.9 | -18.5 | -24% | -34.9 |
Total | 69.6 | 49.4 | 41% | 121.2 | 94.7 | 28% | 226.7 |
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
The telephone conference, during which questions may be presented, can be accessed by registering here. The registration opens 15 minutes prior to the event. The event conferencing system will call the participant on the phone number provided and place the participant into the event.
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Attachment
- Cargotec’s half year financial report January–June 2021
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