Q3: strong performance and execution continued
This release is a summary of
The figures presented in this report are unaudited. Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
THIRD QUARTER HIGHLIGHTS
- Order intake
- Service annual agreement base value increased 2.8 percent (+1.5 percent on a comparable currency basis) to
- Order book
- Sales
- Adjusted EBITA margin 10.0 percent (10.4) and adjusted EBITA
- Operating profit
- Earnings per share (diluted)
- Free cash flow
JANUARY-
- Order intake
- Service order intake
- Sales
- Adjusted EBITA margin 8.9 percent (7.1) and adjusted EBITA
- Operating profit
- Earnings per share (diluted)
- Free cash flow
- Net debt
FOURTH QUARTER DEMAND OUTLOOK
The worldwide demand picture remains subject to volatility due to the COVID-19 pandemic.
In
Global container throughput continues to be at a record high, and long-term prospects related to global container handling remain good overall.
FINANCIAL GUIDANCE
Third quarter | January - September | |||||||
7-9/ 2021 |
7-9/ 2020 | Change% |
1-9/ 2021 |
1-9/ 2020 | Change% |
R12M |
1-12/ 2020 | |
Orders received, MEUR | 713.7 | 565.5 | 26.2 | 2,283.2 | 1,884.0 | 21.2 | 3,126.5 | 2,727.3 |
Order book at end of period, MEUR | 1,997.4 | 1,742.8 | 14.6 | 1,715.5 | ||||
Sales total, MEUR | 773.6 | 767.9 | 0.7 | 2,236.8 | 2,242.1 | -0.2 | 3,173.6 | 3,178.9 |
Adjusted EBITDA, MEUR 1 | 98.6 | 103.2 | -4.5 | 264.1 | 232.2 | 13.7 | 388.6 | 356.7 |
Adjusted EBITDA, % 1 | 12.7% | 13.4% | 11.8% | 10.4% | 12.2% | 11.2% | ||
Adjusted EBITA, MEUR 2 | 77.4 | 80.1 | -3.4 | 199.0 | 158.7 | 25.4 | 301.1 | 260.8 |
Adjusted EBITA, % 2 | 10.0% | 10.4% | 8.9% | 7.1% | 9.5% | 8.2% | ||
Adjusted operating profit, MEUR 1 | 69.2 | 71.2 | -2.7 | 174.1 | 131.8 | 32.1 | 267.1 | 224.9 |
Adjusted operating margin, % 1 | 9.0% | 9.3% | 7.8% | 5.9% | 8.4% | 7.1% | ||
Operating profit, MEUR | 49.9 | 40.3 | 23.7 | 134.0 | 90.8 | 47.6 | 217.0 | 173.8 |
Operating margin, % | 6.4% | 5.2% | 6.0% | 4.0% | 6.8% | 5.5% | ||
Profit before taxes, MEUR | 43.1 | 35.6 | 21.1 | 110.9 | 94.1 | 17.9 | 187.1 | 170.3 |
Net profit for the period, MEUR | 31.4 | 25.9 | 21.2 | 78.2 | 67.7 | 15.4 | 133.3 | 122.9 |
Earnings per share, basic, EUR | 0.40 | 0.33 | 21.6 | 0.99 | 0.85 | 15.4 | 1.68 | 1.54 |
Earnings per share, diluted, EUR | 0.40 | 0.33 | 21.6 | 0.99 | 0.85 | 15.4 | 1.68 | 1.54 |
Interest-bearing net debt / Equity, % | 46.7% | 61.5% | 46.1% | |||||
Net debt / Adjusted EBITDA, R12M 1 | 1.5 | 2.2 | 1.6 | |||||
Return on capital employed, % | 9.3% | 8.3% | ||||||
Adjusted return on capital employed, % 3 | 13.1% | 11.1% | ||||||
Free cash flow, MEUR | 39.0 | 81.4 | 72.0 | 188.9 | 249.2 | 366.1 | ||
Average number of personnel during the period | 16,638 | 17,068 | -2.5 | 17,027 |
1) Excluding adjustments, see also note 10 in the summary financial statements
2) Excluding adjustments and purchase price allocation amortization, see also note 10 in the summary financial statements
3) ROCE excluding adjustments, see also note 10 in the summary financial statements
PRESIDENT AND CEO
In Q3, overall market sentiment continued to be good and similar to the previous quarter, although COVID-19 related market volatility is not over. Year-on-year,
Component availability, customer delays and other supply chain constraints continued to affect our sales in Q3, with a quarterly impact of approximately
Our Q3 adjusted EBITA margin was 10.0%, which is an excellent achievement given global component and other supply chain issues and the disruptions the pandemic is still causing in many countries. We ended 0.4 percentage points behind last year's record-high Q3 adjusted EBITA margin mainly due to temporary factors that had a positive impact on our personnel expenses a year-ago.
As for our Q3 performance by each business, Service order intake improved by 16.8% year-on-year in comparable currencies, and orders grew in all three regions. Although component shortages and logistics delays impacted Service sales, the adjusted EBITA margin was 18.9%, an all-time high for Q3. The agreement base value grew by 1.5% from the previous year in comparable currencies, continuing to demonstrate the resiliency of our Service growth engine during the pandemic.
Industrial Equipment's external order intake grew by 32.1% in comparable currencies. Net sales continued to be impacted by customer delays and supply chain constraints, and as a result, Industrial Equipment's adjusted EBITA margin was 4.4%, 0.6 percentage points behind the previous year. We continued to make good progress with our strategic initiatives.
In Port Solutions activity remained high within ports, but after three straight quarters of exceptionally strong cumulative orders, the lumpy nature of our project business and timing of customers' decision-making led to lower Q3 orders in comparison to the previous quarters. Overall, in our view, the long-term prospects related to container handling orders remain good. Despite the generally good sales execution in Port Solutions, mobile equipment sales were impacted by component shortages, and as a result, Port Solutions' adjusted EBITA margin totaled 6.3% and was behind last year.
We have updated our demand outlook for Q4 to reflect the current market sentiment, and we reiterate our full-year guidance for 2021 despite the supply chain challenges that have impacted us since the beginning of this year. We expect our net sales to increase in full-year 2021 compared to 2020 and our full-year adjusted EBITA margin to improve from 2020. As for the component availability issues, customer delays and other supply chain constraints, we expect them to continue in Q4 and into 2022. Building upon our successful MHE-Demag and MHPS integrations, and to enhance customer focus and drive further efficiencies, we plan to assess even closer collaboration between our Service and Industrial Equipment Business Areas.
Our announced merger with
Q4 will be my last quarter as the President and CEO of
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Kiira Fröberg
Vice President, Investor Relations
FURTHER INFORMATION
Kiira Fröberg,
Vice President, Investor Relations,
tel. +358 (0) 20 427 2050
IMPORTANT NOTICE
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