Cargotec's financial statements review 2014: Profit improvement measures enhanced operating profit; Q4 operating profit improved significantly

The figures in this financial statements review are based on Cargotec Corporation's audited 2014 Financial statements.

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October-December 2014 in brief

• Orders received decreased 5 percent and totalled EUR 914 (958) million.

• Order book amounted to EUR 2,200 (31 Dec 2013: 1,980) million at the end of the period.

• Sales grew 5 percent to EUR 963 (914) million.

• Operating profit excluding restructuring costs was EUR 71.5 (38.6) million, representing 7.4 (4.2) percent of sales.

• Operating profit was EUR 63.0 (15.3) million, representing 6.5 (1.7) percent of sales.

• Cash flow from operations before financial items and taxes totalled EUR 84.0 (133.9) million.

• Net income for the period amounted to EUR 40.6 (7.7) million.

• Earnings per share was EUR 0.63 (0.12).

January-December 2014 in brief

• Orders received increased 9 percent and totalled EUR 3,599 (3,307) million.

• Sales grew 6 percent to EUR 3,358 (3,181) million.

• Operating profit excluding restructuring costs was EUR 149.3 (126.5) million, representing 4.4 (4.0) percent of sales.

• Operating profit was EUR 126.6 (92.5) million, representing 3.8 (2.9) percent of sales.

• Cash flow from operations before financial items and taxes totalled EUR 204.3 (180.9) million.

• Net income for the period amounted to EUR 72.0 (55.4) million.

• Earnings per share was EUR 1.11 (0.89).

• The Board of Directors proposes a dividend of EUR 0.54 per class A share and EUR 0.55 per class B share be paid.

Outlook for 2015

Cargotec's 2015 sales are expected to grow from 2014 (3,358 MEUR). Operating profit excluding restructuring costs for 2015 is expected to improve from 2014 (149.3 MEUR).

Cargotec's President and CEO Mika Vehviläinen:

Our results for 2014 are a clear indication that our profit improvement programmes have progressed well and that we are implementing the issues defined in our strategy, one step at a time. Both fourth-quarter orders and sales grew on the previous quarter. Operating profit improved across the business areas towards the year-end with the fourth quarter clearly outperforming the previous quarters. I am also delighted with the improvement in cash flow.

Even though the overall financial results for 2014 were below our expectations, I am more convinced that we can meet our future targets. Our market position is strengthened by several successful new product launches. In North America in particular, market activity is expected to continue positive both for Hiab and Kalmar. We face challenging markets in MacGregor, but there is still much room for improvement in our own operations. In 2015, we will continue the profit improvement programmes in Kalmar and Hiab and the development programmes launched in MacGregor in order to improve the business area's profitability over the cycle.