Q3 Interim Review January-September 2007 President and CEO Mikael - - PowerPoint PPT Presentation

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Q3 Interim Review January-September 2007 President and CEO Mikael - - PowerPoint PPT Presentation

Jan 07, 2023 30 likes •235 views

Q3 Interim Review January-September 2007 President and CEO Mikael Mkinen October 18, 2007 1 Key issues in January-September 2007 Q3 order intake record strong at MEUR 1,028 (79/2006: 603). Jan-Sep orders received totalled MEUR 2,892

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October 18, 2007

1

Q3 Interim Review January-September 2007 President and CEO Mikael Mäkinen

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October 18, 2007 2

Key issues in January-September 2007

  • Q3 order intake record strong at MEUR 1,028

(7–9/2006: 603). Jan-Sep orders received totalled MEUR 2,892 (1-9/2006: 2,194).

  • Q3 sales were MEUR 713 (7–9/2006: 625). Sales growth
  • f 13%, with half organic. Jan-Sep sales were MEUR

2,151 (1,900).

  • Services development continued strong with 28% growth.
  • Q3 operating profit from operations was MEUR 52.5

(7–9/2006: 52.1) representing 7.4 (8.3)% of sales. Jan- Sep operating profit from operations was MEUR 156.6 (164.0) representing 7.3 (8.6)% of sales.

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October 18, 2007 3

Market activity was lively

  • Development of world economy and trade lively
  • Container traffic volumes continue to grow
  • Ship building at ship yards continues at

high level

  • Load handling equipment demand in Europe strong

but U.S. demand weak due to significant drop in construction activity

  • Demand for services developed positively
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October 18, 2007 4

Cargotec’s order intake at record level

  • Hiab

– Load handling equipment demand strong in Europe, particularly in Central Eastern Europe, Russia and China – U.S. market and order intake weak

  • Kalmar

– Demand for container handling equipment healthy – Demand for heavy industrial handling equipment continued to be lively in Europe

  • MacGREGOR

– Demand for marine cargo handling and offshore solutions continued very high – Many orders from long ship series with deliveries extending for a period of several years

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October 18, 2007 5

Orders received

MEUR +32% +70% 1,028 2,892 1,848 2,337 2,910 2,385 2,194 603

500 1,000 1,500 2,000 2,500 3,000 3,500

2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 1-9/06 1-9/07 7-9/06 7-9/07

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October 18, 2007 6

Order book record high

MEUR

*Pro forma

2,552 2,244 1,594 1,544 1,281 1,173

500 1,000 1,500 2,000 2,500 3,000 3 1 . 1 2 . 3 * 3 1 . 3 . 4 * 3 . 6 . 4 * 3 . 9 . 4 * 3 1 . 1 2 . 4 * 3 1 . 3 . 5 * 3 . 6 . 5 3 . 9 . 5 3 1 . 1 2 . 5 3 1 . 3 . 6 3 . 6 . 6 3 . 9 . 6 3 1 . 1 2 . 6 3 1 . 3 . 7 3 . 6 . 7 3 . 9 . 7

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October 18, 2007 7

Sales growth continued – half of growth organic

MEUR +14% +13%

625 1,900 1,658 2,358 1,900 2,597 713 2,151 400 800 1,200 1,600 2,000 2,400 2,800 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 1-9/06 1-9/07 7-9/06 7-9/07

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October 18, 2007 8

1,072 1,368 1,187 476 720 498 509 403 466 1,335 991 620 356 352 552

300 600 900 1,200 1,500

2004* 2005* 2006 1-9/07 2004* 2005* 2006 1-9/07 2004* 2005* 2006 1-9/07

Geographical development of sales – fastest growth in Asia

Americas Asia Pacific EMEA MEUR

*Pro forma

+31%

  • 10 %

+20 %

1-9 1-9 1-9

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October 18, 2007 9

428 492 572 537 95 109 134 111 223 267 311 294 128 110 116 132

418 100 91 228

100 200 300 400 500 600 700

2004* 2005* 2006 1-9/07 2004* 2005* 2006 1-9/07 2004* 2005* 2006 1-9/07 2004* 2005* 2006 1-9/07

Services grew by 28% y-on-y representing 25% of sales

Hiab MacGREGOR Kalmar MEUR

*Pro forma 1-9 1-9 1-9 1-9

+45 % +28 % +11 % +29 % Cargotec

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October 18, 2007 10

13.7 6.8% 27.8 8.5% 15.0 8.0% (4.0) 52.5 7.4% 86.0 9.4% 111.7 9.3% 35.9 7.5% (11.9) 221.7 8.5%

Operating profit from operations by business area

MEUR Hiab % Kalmar % MacGREGOR % Group admin, others Cargotec total % Pro forma 2005 7-9/2007 2006 Pro forma 2004 44.6 6.4% 66.4 7.7% 20.9 6.2% (8.0) 123.9 6.5% 17.4 8.4% 27.5 9.5% 9.9 7.8% (2.7) 52.1 8.3% 7-9/2006 66.6 7.9% 97.6 8.5% 27.5 7.5% (12.3) 179.4 7.6%

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October 18, 2007 11

Jan-Sep analysis – operating profit from operations

Hiab Kalmar MacGREGOR Group administration Cargotec total

1-9/2007 1-9/2006 54.5 63.3 7.9% 9.4% 78.6 83.5 8.0% 9.5% 37.0 26.2 7.6% 7.6% (13.5) (9.0) 156.6 164.0 7.3% 8.6%

  • Investments in strengthening Cargotec’s

presence and market position are increasing corporate admin costs in 2007

  • Cost reserve for Dutch factory
  • U.S. demand clearly below last year,

strong development in Europe and Asia not fully compensating

  • Cost impact from the purchase price

allocation treatment of acquisitions in 1-9/07 MEUR 4.6 of which over half in MacGREGOR

  • Sales impact of acquired service companies
  • Higher costs from expanding presence in big

cranes and automation solutions

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October 18, 2007 12

53 157 222 179 52 85 15 124 164 18 18 18

50 100 150 200 250 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 1-9/06 1-9/07 7-9/06 7-9/07 MEUR 240 195

Operating profit

Non-recurring capital gain

182 70

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October 18, 2007 13

Earnings per share (basic)

Euros 0.81 1.97 2.57

Non-recurring capital gain

0.55 1.72 0.60 0.81 2.11 1.20 1.76 2.37 0.21 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 1-9/06 1-9/07 7-9/06 7-9/07

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October 18, 2007 14

Cash flow from operating activities before financial items and taxes

MEUR 56 139 147 194 158 250 66 179

50 100 150 200 250 300

2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 1-9/06 1-9/07 7-9/06 7-9/07

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October 18, 2007 15

Key figures

Pro forma 30.9.2007 2006 2005 Basic earnings per share EUR 1.72 2.57 2.11 Equity per share EUR 13.96 13.72 11.93 Interest-bearing net debt MEUR 364.6 107.5 120.5 Total equity/total assets % 40.2 47.6 46.2 Gearing % 41.6 12.3 15.7 Return on equity % 16.7 20.2 19.2 Return on capital employed % 17.6 23.1 20.9

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October 18, 2007 16

Acquisitions completed in January-September 2007

  • Services company Tagros in Slovenia
  • Berger sales, service, installation network in Eastern Europe
  • Sales and services company Truck och Maskin i Örnsköldsvik in Northern

Sweden

  • Increased stake in distribution and services company BG Crane in Australia
  • U.S. services company PES for ports and intermodal terminals
  • Manufacturing base in India through Indital
  • Offshore and sub-sea load handling systems company Hydramarine in Norway
  • Plimsoll in Singapore focused on offshore deck equipment
  • Kalmar Asia Pacific minority stake
  • Kalmar distributor Kalmar España in Spain
  • Offshore service company Vestnorsk Hydraulikkservice in Norway
  • Component and steel structure manufacturer Balti ES in Estonia
  • U.S. services company Bay Equipment Repairs
  • Port automation technology company Advanced Cargo

Transhipment in the Netherlands Q3

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October 18, 2007 17

Services strengthened through Cargotec Services

  • perating model
  • Aim is to speed up services growth by better

focusing resources and service knowhow

  • Cooperation in service concept

development, spare parts sales and training

  • f service people will be strengthened by a

matrix organisation, where Cargotec Services acts as an internal centre of expertise.

  • Special focus in the operating model will be

put on total maintenance of container and bulk terminals as well as significant refurbishment and conversion projects.

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October 18, 2007 18

Focus on R&D and expansion of presence

  • Expansion of production presence:
  • Indonesia (offshore solutions)
  • India (container and load

handling equipment)

  • China (offshore solutions)
  • Vietnam (joint-venture for

hatch cover manufacturing)

  • Estonia (component

manufacturing)

  • R&D focus areas:
  • Hiab: expansion of product

families, biggest capacity loader crane latest addition

  • Kalmar: big cranes and

automation solutions as well as eco-efficiency

  • MacGREGOR: new control

systems and electrical solutions

During 2007 Cargotec has invested in research and development as well as expansion of presence in component manufacturing and assembly. R&D expenditure has risen to 1.5% of sales.

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October 18, 2007 19

Outlook

  • General market activity is expected to continue healthy with the exception
  • f the U.S. load handling market. In accordance with its plans, Cargotec

continues growth and efficiency related investments, which burden the 2007 result.

  • Thanks to the record value of orders received so far in the year the

estimate for full year 2007 order intake growth has been raised to close to 30 %.

  • The sales growth estimate for 2007 is unchanged at approximately 15 %,

which implies strong sales growth for the final quarter. Due to the growth

  • perating profit in euros will improve from the previous quarters. Operating

profit margin for the final quarter is estimated to remain at the third quarter level.

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October 18, 2007 20

Questions & Answers

  • Mr. Mikael Mäkinen, President and CEO
  • Mr. Kari Heinistö, Senior Executive Vice President and CFO
  • Ms. Eeva Mäkelä, SVP IR & Communications
  • Ms. Tiina Naumanen, Group Controller