Cargotec to Present Kalmar as Discontinued Operations in Restated Financials for 2023

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Cargotec to Present Kalmar as Discontinued Operations in Restated Financials for 2023

(IN BRIEF) Cargotec Corporation has approved a demerger plan, separating the Kalmar business area into an independent listed company by June 30, 2024. Shareholders, representing a significant portion of Cargotec’s shares and votes, have expressed support for the demerger. Consequently, Cargotec will present Kalmar as discontinued operations starting from the first quarter of 2024, in accordance with IFRS 5. The restated financial information for 2023, which includes comparative data, distinguishes between continuing and discontinued operations. However, it does not forecast standalone profitability for either business before or after the demerger. The financials disclosed are unaudited.

(PRESS RELEASE) HELSINKI, 8-Apr-2024 — /EuropaWire/ — As announced in a stock exchange release on 1 February 2024, the Board of Directors of Cargotec Corporation (“Cargotec”) has approved a demerger plan concerning the separation of the Kalmar business area into an independent listed company (the “Demerger”). The planned completion date of the Demerger is 30 June 2024. The Demerger is subject to approval by the Annual General Meeting of Cargotec to be held on 30 May 2024. Certain major shareholders of Cargotec, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Kone Foundation, holding in the aggregate approximately 41 percent of the shares and approximately 75 percent of the votes in Cargotec, have indicated their support for the proposed Demerger.

Due to the proposed Demerger, Cargotec presents the Kalmar business area as discontinued operations under IFRS 5 Non-current Assets held for Sale and Discontinued operations starting from the first quarter of 2024 and publishes restated quarterly financial information on its 2023 financials. These restated financials constitute comparative information for Cargotec when the Kalmar business area is presented as discontinued operations.

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 Cargotec as continuing and Kalmar business area as discontinued operations do not reflect the past or future profitability of either business on a stand-alone basis before the Demerger or after it.

The restated financial information included in this release is unaudited.

Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec’s business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec has signed the United Nations Global Compact Business Ambition for 1.5°C. The company’s sales in 2023 totalled approximately EUR 4.6 billion and it employs around 11,400 people. www.cargotec.com

Cargotec’s key figures 2023

Restated
MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Continuing operations
Orders received 588 562 522 610 2,282
Service orders received 219 190 183 194 787
Order book, end of period 2,078 1,961 1,894 1,788 1,788
Sales 589 648 598 684 2,519
Service sales 200 201 197 208 806
Service sales, % of sales 34% 31% 33% 30% 32%
Eco portfolio sales 186 217 192 202 797
Eco portfolio sales, % of sales 32% 33% 32% 30% 32%
Operating profit 41.7 78.6 76.7 39.0 236.0
Operating profit, % 7.1% 12.1% 12.8% 5.7% 9.4%
Comparable operating profit 49.7 80.6 60.9 45.5 236.7
Comparable operating profit, % 8.4% 12.4% 10.2% 6.7% 9.4%
Profit before taxes 35.4 74.0 73.9 36.2 219.5
Profit for the period 23.7 54.7 62.2 21.7 162.4
Basic earnings per share, EUR 0.37 0.85 0.97 0.31 2.49
Discontinued operations Q1/23 Q2/23 Q3/23 Q4/23 2023
Orders received 471 437 392 405 1,705
Service orders received 143 136 129 137 545
Order book, end of period 1,389 1,281 1,172 1,024 1,024
Sales 485 552 503 509 2,049
Service sales 146 143 137 147 574
Service sales, % of sales 30% 26% 27% 29% 28%
Eco portfolio sales 160 181 175 202 718
Eco portfolio sales, % of sales 33% 33% 35% 40% 35%
Operating profit 62.3 71.9 63.6 50.0 247.8
Operating profit, % 12.8% 13.0% 12.6% 9.8% 12.1%
Comparable operating profit 62.7 77.7 70.6 65.7 276.7
Comparable operating profit, % 12.9% 14.1% 14.0% 12.9% 13.5%
Profit before taxes 60.3 67.1 60.4 45.7 233.5
Profit for the period 48.9 52.9 44.8 39.6 186.2
Basic earnings per share, EUR 0.76 0.82 0.70 0.62 2.89
Published
Cargotec total Q1/23 Q2/23 Q3/23 Q4/23 2023
Orders received 1,059 999 914 1,015 3,987
Service orders received 362 326 312 331 1,331
Order book, end of period 3,467 3,242 3,065 2,812 2,812
Sales 1,074 1,200 1,102 1,193 4,569
Service sales 346 344 334 355 1,379
Service sales, % of sales 32% 29% 30% 30% 30%
Eco portfolio sales 346 397 367 404 1,515
Eco portfolio sales, % of sales 32% 33% 33% 34% 33%
Operating profit 104.0 150.5 140.3 89.0 483.8
Operating profit, % 9.7% 12.5% 12.7% 7.5% 10.6%
Comparable operating profit 112.4 158.3 131.5 111.2 513.3
Comparable operating profit, % 10.5% 13.2% 11.9% 9.3% 11.2%
Profit before taxes 95.7 141.0 134.3 81.9 453.0
Profit for the period 72.6 107.7 107.1 61.3 348.7
Basic earnings per share, EUR 1.13 1.67 1.66 0.92 5.38
Cash flow from operations before finance items and taxes 26.5 41.2 184.4 292.1 544.2
Interest-bearing net debt, end of the period 393 503 406 179 179
Gearing, % 26.4% 31.9% 24.2% 10.2% 10.2%
Interest-bearing net debt / EBITDA* 1.0 5.1 4.4 5.7 0.3
Return on capital employed (ROCE), last 12 months, % 7.5% 4.3% 3.7% 4.8% 19.9%
Personnel at the end of the period 11,640 11,745 11,786 11,391 11,391
*Last 12 months` EBITDA

Consolidated statement of income (restated)

MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Sales 588.8 648.2 598.4 684.0 2,519.4
Cost of goods sold -455.9 -479.2 -455.2 -532.7 -1,923.0
Gross profit 132.9 169.1 143.3 151.3 596.5
Gross profit, % 22.6% 26.1% 23.9% 22.1% 23.7%
Selling and marketing expenses -30.8 -31.8 -30.5 -34.9 -128.0
Research and development expenses -10.3 -11.0 -10.3 -12.8 -44.4
Administration expenses -47.7 -45.9 -45.9 -58.7 -198.2
Restructuring costs -3.3 -1.7 -2.0 -6.4 -13.4
Other operating income 1.9 1.9 3.3 1.6 8.7
Other operating expenses -1.0 -1.9 17.8 -2.2 12.7
Share of associated companies’ and joint ventures’ net result 0.0 0.0 0.9 1.1 2.1
Operating profit 41.7 78.6 76.7 39.0 236.0
Operating profit, % 7.1% 12.1% 12.8% 5.7% 9.4%
Finance income 1.3 0.7 2.0 3.1 7.0
Finance expenses -7.5 -5.3 -4.8 -5.9 -23.5
Profit before taxes 35.4 74.0 73.9 36.2 219.5
Profit before taxes, % 6.0% 11.4% 12.4% 5.3% 8.7%
Income taxes -11.7 -19.3 -11.7 -14.5 -57.1
Profit for the period, continuing operations 23.7 54.7 62.2 21.7 162.4
Profit for the period, continuing operations, % 4.0% 8.5% 10.4% 2.9% 6.4%
Profit for the period, discontinued operations 48.9 52.9 44.8 39.6 186.2
Profit for the period 72.6 107.7 107.1 61.3 348.7
Profit for the period, % 12.3% 16.6% 17.9% 9.0% 13.8%
Profit for the period attributable to:
Shareholders of the parent company 72.7 107.7 107.2 59.2 346.9
Non-controlling interest -0.1 -0.1 -0.1 2.1 1.8
Total 72.6 107.7 107.1 61.3 348.7
Earnings per share for profit attributable to the shareholders of the parent company:
Basic earnings per share, EUR
Continuing operations 0.37 0.85 0.97 0.31 2.49
Discontinued operations 0.76 0.82 0.70 0.62 2.89
Diluted earnings per share, EUR
Continuing operations 0.37 0.85 0.96 0.31 2.48
Discontinued operations 0.76 0.82 0.69 0.62 2.88

Consolidated statement of comprehensive income (restated)

MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Profit for the period 72.6 107.7 107.1 61.3 348.7
Other comprehensive income
Items that cannot be reclassified to statement of income:
Actuarial gains (+) / losses (-) from defined benefit plans 0.2 0.7 -0.1 -8.2 -7.4
Taxes relating to items that cannot be reclassified to statement of income 0.0 -0.1 0.0 1.7 1.5
Items that can be reclassified to statement of income:
Gains (+) / losses (-) on cash flow hedges 9.2 -12.3 -9.5 32.5 19.9
Gains (+) / losses (-) on cash flow hedges transferred to statement of income -6.8 2.0 2.1 -16.4 -19.2
Translation differences -30.1 -14.0 18.0 3.6 -22.5
Taxes relating to items that can be reclassified to statement of income -1.0 1.9 1.6 -3.0 -0.5
Share of other comprehensive income of associates and JV, net of tax 0.7 0.0 0.0 0.0 0.7
Other comprehensive income, net of tax -27.9 -21.8 12.2 10.1 -27.4
Comprehensive income for the period 44.7 85.8 119.2 71.5 321.2
Comprehensive income for the period attributable to:
Shareholders of the parent company 44.8 85.8 119.4 69.4 319.5
Non-controlling interest -0.1 0.0 -0.1 2.1 1.7
Total 44.7 85.8 119.2 71.5 321.2
Comprehensive income for the period attributable to the shareholders of the parent company
Continuing operations -6.2 36.7 76.8 28.2 135.6
Discontinued operations 51.1 49.1 42.6 41.1 183.9
Total 44.8 85.8 119.4 69.4 319.5

Segment information

Sales, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 485 552 503 509 2,050
Hiab 432 485 420 450 1,787
MacGregor 157 164 179 234 733
Internal sales 0 0 0 0 0
Cargotec total, published 1,074 1,200 1,102 1,193 4,569
Adjustment items related to discontinued operations 485 552 503 509 2,049
Continuing operations total, restated 589 648 598 684 2,519
Published
Sales by geographical area, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 512 532 473 542 2,059
Americas 412 468 426 412 1,717
Asia-Pacific 151 199 203 240 792
Cargotec total 1,074 1,200 1,102 1,193 4,569
Restated
Sales by geographical area, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 315 335 273 314 1,237
Americas 176 198 194 198 766
Asia-Pacific 97 115 132 172 516
Continuing operations total 589 648 598 684 2,519
Published
Sales by geographical area, % Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 48% 44% 43% 45% 45%
Americas 38% 39% 39% 35% 38%
Asia-Pacific 14% 17% 18% 20% 17%
Cargotec total 100% 100% 100% 100% 100%
Restated
Sales by geographical area, % Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 54% 52% 46% 46% 49%
Americas 30% 30% 32% 29% 30%
Asia-Pacific 16% 18% 22% 25% 20%
Continuing operations total 100% 100% 100% 100% 100%
Cargotec total Published
Operating profit and EBITDA, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 62.8 78.4 64.1 58.9 264.2
Hiab 61.4 81.5 61.5 47.8 252.1
MacGregor -7.4 8.2 24.3 6.7 31.8
Corporate administration and support functions -12.8 -17.6 -9.6 -24.3 -64.4
Operating profit 104.0 150.5 140.3 89.0 483.8
Depreciation, amortisation and impairment* 28.5 28.2 29.5 28.7 114.9
EBITDA 132.5 178.7 169.8 117.7 598.7
*Includes the effects of allocating the acquisition cost of businesses
Kalmar -0.2 -0.2 -0.2 -0.2 -0.8
Hiab -0.8 -0.8 -0.8 -0.8 -3.1
MacGregor -1.8 -1.7 -1.7 -1.7 -6.9
Cargotec total -2.8 -2.7 -2.7 -2.7 -10.8
Continuing operations Restated
Operating profit and EBITDA, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Operating profit 41.7 78.6 76.7 39.0 236.0
Depreciation, amortisation and impairment 14.4 14.1 15.5 13.8 57.7
EBITDA 56.0 92.7 92.2 52.8 293.7
Operating profit, % Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 12.9% 14.2% 12.7% 11.6% 12.9%
Hiab 14.2% 16.8% 14.7% 10.6% 14.1%
MacGregor -4.7% 5.0% 13.6% 2.8% 4.3%
Cargotec total, published 9.7% 12.5% 12.7% 7.5% 10.6%
Continuing operations total, restated 7.1% 12.1% 12.8% 5.7% 9.4%
Items affecting comparability, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar
Restructuring costs -0.4 0.0 -0.5 -0.3 -1.2
Other items affecting comparability – – -6.6 -7.4 -14.0
Items affecting comparability, total -0.4 0.0 -7.1 -7.7 -15.2
Hiab
Restructuring costs 0.0 0.1 0.0 0.0 0.1
Other items affecting comparability 0.0 – 0.0 0.0 0.0
Items affecting comparability, total 0.0 0.1 0.0 0.0 0.1
MacGregor
Restructuring costs -3.3 -1.8 -2.0 -6.4 -13.5
Other items affecting comparability -4.7 -0.3 17.8 -0.1 12.7
Items affecting comparability, total -8.0 -2.1 15.8 -6.5 -0.8
Corporate administration and support functions
Restructuring costs 0.0 0.0 0.0 0.0 0.0
Other items affecting comparability 0.0 -5.8 0.1 -7.9 -13.6
Items affecting comparability, total 0.0 -5.8 0.1 -7.9 -13.6
Items affecting comparability, Cargotec total, published -8.4 -7.8 8.8 -22.1 -29.6
Items affecting comparability, continuing operations total, MEUR
Restructuring costs -3.3 -1.7 -2.0 -6.4 -13.4
Other items affecting comparability -4.7 -0.3 17.8 -0.1 12.7
Items affecting comparability, continuing operations total -8.0 -2.0 15.8 -6.5 -0.7
Comparable operating profit, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 63.2 78.4 71.2 66.6 279.4
Hiab 61.4 81.4 61.5 47.8 252.1
MacGregor 0.7 10.3 8.5 13.1 32.6
Corporate administration and support functions -12.8 -11.8 -9.7 -16.4 -50.8
Cargotec total, published 112.4 158.3 131.5 111.2 513.3
Continuing operations total, restated 49.7 80.6 60.9 45.5 236.7
Comparable operating profit, % Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 13.0% 14.2% 14.1% 13.1% 13.6%
Hiab 14.2% 16.8% 14.7% 10.6% 14.1%
MacGregor 0.4% 6.3% 4.8% 5.6% 4.5%
Cargotec total, published 10.5% 13.2% 11.9% 9.3% 11.2%
Continuing operations total, restated 8.4% 12.4% 10.2% 6.7% 9.4%
Orders received, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 471 437 392 405 1,705
Hiab 380 375 311 401 1,466
MacGregor 208 187 211 209 816
Internal orders received 0 0 0 0 0
Cargotec total, published 1,059 999 914 1,015 3,987
Adjustment items related to discontinued operations 471 437 392 405 1,705
Continuing operations total, restated 588 562 522 610 2,282
Orders received by geographical area, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 456 480 431 416 1,784
Americas 382 328 239 357 1,307
Asia-Pacific 220 191 244 242 896
Cargotec total, published 1,059 999 914 1,015 3,987
Orders received by geographical area, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 242 263 237 239 981
Americas 197 179 133 187 697
Asia-Pacific 149 120 152 184 604
Continuing operations total, restated 588 562 522 610 2,282
Orders received by geographical area, % Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 43% 48% 47% 41% 45%
Americas 36% 33% 26% 35% 33%
Asia-Pacific 21% 19% 27% 24% 22%
Cargotec total, published 100% 100% 100% 100% 100%
Orders received by geographical area, % Q1/23 Q2/23 Q3/23 Q4/23 2023
EMEA 41% 47% 45% 39% 43%
Americas 34% 32% 26% 31% 31%
Asia-Pacific 25% 21% 29% 30% 26%
Continuing operations total, restated 100% 100% 100% 100% 100%
Order book, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 1,390 1,281 1,172 1,024 1,024
Hiab 1,121 1,007 900 799 799
MacGregor 956 953 993 988 988
Internal order book 1 1 1 1 1
Cargotec total, published 3,467 3,242 3,065 2,812 2,812
Adjustment items related to discontinued operations 1,389 1,281 1,172 1,024 1,024
Continuing operations total, restated 2,078 1,961 1,894 1,788 1,788
Published
Number of employees at the end of period Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 5,024 5,087 5,101 4,907 4,907
Hiab 3,897 3,961 3,972 3,877 3,877
MacGregor 1,975 1,935 1,945 1,853 1,853
Corporate administration and support functions 744 762 768 754 754
Cargotec total 11,640 11,745 11,786 11,391 11,391
Published
Average number of employees Q1/23 Q2/23 Q3/23 Q4/23 2023
Kalmar 5,025 5,037 5,063 5,041 5,041
Hiab 3,877 3,914 3,929 3,932 3,932
MacGregor 1,982 1,965 1,958 1,938 1,938
Corporate administration and support functions 746 752 757 758 758
Cargotec total 11,630 11,667 11,707 11,669 11,669

Capital expenditure, depreciation, amortisation and impairment of continuing operations (restated)

Capital expenditure, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Owned assets
Intangible assets 0.3 1.3 0.5 0.5 2.6
Land and buildings 0.4 0.1 1.1 0.9 2.6
Machinery and equipment 5.0 5.2 4.5 5.3 20.1
Right-of-use assets
Land and buildings 3.1 4.2 2.6 5.3 15.3
Machinery and equipment 3.4 3.7 3.7 4.0 14.8
Total 12.2 14.6 12.4 16.1 55.3
Depreciation, amortisation and impairment, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Owned assets
Intangible assets 3.5 3.4 3.4 3.2 13.5
Land and buildings 0.7 0.7 0.6 0.6 2.5
Machinery and equipment 2.8 2.6 2.7 3.3 11.5
Right-of-use assets
Land and buildings 4.6 4.5 5.8 3.2 18.0
Machinery and equipment 2.8 2.9 3.0 3.5 12.2
Total 14.4 14.1 15.5 13.8 57.7

Statement of income for discontinued operations

MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Sales 485.3 551.6 503.1 509.4 2,049.4
Cost of goods sold -363.1 -419.3 -381.4 -376.8 -1,540.6
Gross profit 122.2 132.4 121.7 132.5 508.8
Gross profit, % 25.2% 24.0% 24.2% 26.0% 24.8%
Selling and marketing expenses -19.9 -21.8 -19.8 -24.0 -85.5
Research and development expenses -12.8 -12.1 -12.1 -16.8 -53.9
Administration expenses -28.0 -29.6 -18.6 -35.0 -111.2
Restructuring costs -0.4 0.0 -0.5 -0.3 -1.2
Other operating income 7.6 8.1 7.8 7.7 31.2
Other operating expenses -8.0 -7.2 -16.7 -17.4 -49.4
Share of associated companies’ and joint ventures’ net result 1.7 2.1 1.9 3.3 9.0
Operating profit 62.3 71.9 63.6 50.0 247.8
Operating profit, % 12.8% 13.0% 12.6% 9.8% 12.1%
Finance income 1.5 1.0 1.5 1.7 5.7
Finance expenses -3.6 -5.9 -4.7 -5.9 -20.0
Profit before taxes 60.3 67.1 60.4 45.7 233.5
Profit before taxes % 12.4% 12.2% 12.0% 9.0% 11.4%
Income taxes -11.4 -14.1 -15.6 -6.1 -47.3
Profit for the period, discontinued operations 48.9 52.9 44.8 39.6 186.2
Profit for the period, % 10.1% 9.6% 8.9% 7.8% 9.1%
Profit for the period attributable to:
Shareholders of the parent company 48.9 52.9 44.8 39.6 186.2
Earnings per share for profit attributable to the shareholders of the parent company:
Basic earnings per share, EUR 0.76 0.82 0.70 0.62 2.89
Diluted earnings per share, EUR 0.76 0.82 0.69 0.62 2.88

Discontinued operations, other information

Capital expenditure, MEUR Q1/23 Q2/23 Q3/23 Q4/23 2023
Owned assets 17.7 10.4 12.6 15.1 55.8
Right-of-use assets 2.6 5.2 13.3 4.7 25.9
Total 20.3 15.6 26.0 19.8 81.7
Depreciation, amortisation and impairment, MEUR
Owned assets 10.5 10.2 9.9 10.5 41.1
Right-of-use assets 3.6 4.0 4.1 4.3 16.1
Total 14.1 14.2 14.1 14.9 57.2

Media Contacts:

Mikko Puolakka
CFO
tel. +358 20 777 4105

Aki Vesikallio
Vice President
Investor Relations
tel. +358 40 729 1670

SOURCE: CARGOTEC CORPORATION

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