Cargotec Corporation: Cargotec's financial statements review 2015: Earnings per share doubled

10 February 2016, 10:38

by Cargotec (Europe)

Cargotec's financial statements review 2015: Earnings per share doubled

Good profit development continued in Kalmar and Hiab in Q4
MacGregor Q4 profit burdened by indirect costs
Aim to be the leader in intelligent cargo handling

The figures in this financial statements review are based on Cargotec Corporation's audited 2015 Financial statements.

October-December 2015 in brief

Orders received decreased 10 percent and totalled EUR 824 (914) million.
Order book decreased 6 percent and amounted to EUR 2,064 (31 Dec 2014: 2,200) million at the end of the period.
Sales totalled EUR 977 (963) million.
Operating profit excluding restructuring costs was EUR 52.1 (71.5) million, representing 5.3 (7.4) percent of sales.
Operating profit was EUR 45.0 (63.0) million, representing 4.6 (6.5) percent of sales.
Cash flow from operations before financial items and taxes totalled EUR 87.3 (84.0) million.
Net income for the period amounted to EUR 35.4 (40.6) million.
Earnings per share was EUR 0.55 (0.63).

January-December 2015 in brief

Orders received totalled EUR 3,557 (3,599) million.
Sales grew 11 percent to EUR 3,729 (3,358) million.
Operating profit excluding restructuring costs was EUR 230.7 (149.3) million, representing 6.2 (4.4) percent of sales.
Operating profit was EUR 213.1 (126.6) million, representing 5.7 (3.8) percent of sales.
Cash flow from operations before financial items and taxes totalled EUR 314.6 (204.3) million.
Net income for the period amounted to EUR 142.9 (72.0) million.
Earnings per share was EUR 2.21 (1.11).
The Board of Directors proposes a dividend of EUR 0.79 per class A share and EUR 0.80 per outstanding class B share be paid.

Outlook for 2016

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	Q4/15	Q4/14	Change	Q1-Q4/15	Q1-Q4/14	Change
Orders received	824	914	-10%	3,557	3,599	-1%
Order book, end of period	2,064	2,200	-6%	2,064	2,200	-6%
Sales	977	963	1%	3,729	3,358	11%
Operating profit*	52.1	71.5	-27%	230.7	149.3	55%
Operating profit, %*	5.3	7.4		6.2	4.4
Operating profit	45.0	63.0	-29%	213.1	126.6	68%
Operating profit, %	4.6	6.5		5.7	3.8
Income before taxes	36.9	53.4		186.2	98.2
Cash flow from operations	87.3	84.0		314.6	204.3
Net income for the period	35.4	40.6		142.9	72.0
Earnings per share, EUR	0.55	0.63		2.21	1.11
Net debt, end of period	622	719		622	719
Gearing, %	46.4	59.2		46.4	59.2
Personnel, end of period	10,837	10,703		10,837	10,703

*excluding restructuring costs

Cargotec's President and CEO Mika Vehviläinen:

The year 2015 was a milestone for Cargotec with regard to our set targets. Kalmar and Hiab reached the profitability improvement measures initiated two years ago ahead of time by the end of the second quarter. MacGregor's market situation is challenging, but we are confident that we are taking the correct measures in order to adapt to the situation in that business area. Orders received were strong also in the fourth quarter in Kalmar and Hiab, and therefore, orders for the full year 2015 reached the previous year's level despite clearly lower orders for MacGregor. Sales in 2015 grew 11 percent and the operating profit margin excluding restructuring costs improved to 6.2 percent. Our 2015 cash flow was also strong. The doubled earnings per share enables dividend growth of 45 percent. We see attractive opportunities in executing our strategy by further investing in growing our businesses, which in our view increases shareholder value best.

Towards the end of the year, we updated our strategy with the aim of transforming Cargotec into a market leader in intelligent cargo handling by building on services, digitalisation and people leadership. We will invest in R&D in order to ensure that our products remain market leaders and ahead of our competitors' products. We will develop our portfolio by investing in businesses with high growth, as well as by complementing our technological competence and geographical coverage. In particular, we will invest in competence development in order to accelerate our transformation process. We have also updated our financial targets: the new goals for each of the business areas are to reach 10 percent operating profit margin (EBIT) over the cycle as well as to grow faster than the market, and for the group to reach 15 percent return on capital employed (ROCE pre-tax) over the cycle. These targets reflect our growth strategy and expected high return on the planned investments.

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. EET at Cargotec's head office, Porkkalankatu 5, Helsinki. The event will be held in English. The report will be presented by President and CEO Mika Vehviläinen and Executive Vice President, CFO Eeva Sipilä. The presentation material will be available at www.cargotec.com by 10:00 a.m. EET.

The telephone conference, during which questions may be presented, can be accessed using the following numbers with access code Cargotec/7650465:

FI: +358 9 6937 9543

SE: +46 8 5033 6539

UK: +44 20 3427 1918

US: +1 646 254 3361

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.

Source: Cargotec