GlobeNewsWire - Cargotec Oyj Classe B (CGCBV) Review of Cargotec's 2022 financial statements: Record year for Kalmar and Hiab (2023)


Review of Cargotec's 2022 financial statements: record year for Kalmar and Hiab

₋ Order intake, sales and comparable operating income at record levels
₋ Record sales of eco and service bags
₋ MacGregor's portfolio streamlining had a significant negative impact on operating income

Summary from October to December 2022: Comparable operating result increased

  • Incoming orders rose by 13 percent and amounted to EUR 1,190 (1,051) million.
  • The order backlog at the end of the period was EUR 3,541 (December 31, 2021: 2,847) million.
  • Sales increased by 36 percent to EUR 1,239 (910) million.
  • Service sales increased by 22 percent to EUR 354 (289) million.
  • Service sales accounted for 29 (32) percent of consolidated sales.
  • Sales of green portfolios increased by 61% to EUR 268 (166) million.
  • Sales of the ecological portfolio accounted for 22 (18) percent of group sales.
  • The operating result was EUR -29 (8) million, which corresponds to -2.3 (0.9) percent of sales. The operating result includes comparable effects of EUR -117 (-37) million.
  • The comparable operating result rose by 95 percent to EUR 89 (45) million, which corresponds to 7.2 (5.0) percent of sales.
  • The operating cash flow before financial items and taxes is EUR 147 (60) million.
  • The net income for the year is -68 (-8) million euros.
  • The basic earnings per share were EUR -1.04 (-0.13).

January-December 2022 in brief: strong sales growth in ecological wallets

  • Incoming orders rose by 10 percent and amounted to EUR 4,862 (4,427) million.
  • The order backlog at the end of the period was EUR 3,541 (December 31, 2021: 2,847) million.
  • Sales increased by 23 percent to EUR 4,089 (3,315) million.
  • Service revenue increased by 17 percent to EUR 1,264 (1,076) million.
  • Service sales accounted for 31 (32) percent of consolidated sales.
  • Sales of green portfolios increased by 54% to EUR 964 (626) million.
  • Sales of the ecological portfolio accounted for 24 (19) percent of group sales.
  • The operating result was EUR 106 (356) million, which corresponds to 2.6 (10.7) percent of sales. The operating result includes comparable effects of EUR -226 (124) million. The decrease in operating income is primarily due to the gain on disposal of the Navis software business in the comparative period.
  • The comparable operating result rose by 43 percent to EUR 332 (232) million, which corresponds to 8.1 (7.0) percent of sales.
  • Operating cash flow before financial items and taxes amounted to EUR 231 (169) million.
  • The net profit for the year is 23 (247) million euros.
  • The undiluted earnings per share were EUR 0.37 (3.82).
  • The Board of Directors proposes to the Annual General Meeting to pay a dividend of EUR 1.34 for each class A share and EUR 1.35 for each class B share outstanding.

Outlook for 2023

Cargotec estimates that its core businesses1The comparable operating result of 2023 improves compared to 2022 (EUR 3842million) and the comparable operating result of MacGregor in 2023 is positive (EUR -472Million).3

1) Hiab and Kalmar, excluding heavy cranes and including business administration and support functions

2) Cargotec has changed the definition of the alternative performance measure Comparable Operating Result effective January 1, 2023. The updated comparable operating profit will also include the impact of the purchase price allocation, which amounted to €4m in Core and €12m at MacGregor in 2022. Comparable figures have been calculated using the new definition. The restatement of the figures for 2022 will be published before the announcement of the results for the first quarter of 2023.

3) Outlook for 2023 does not include comparable operating profit from Kalmar's heavy crane business, which is being discontinued.

Cargotec key figures

BRANCH OFFICEQ4/22Q4/21To change20222021To change
received orders1.1901.05113%4.8624.42710%
receive service orders34530812%1.2861.16211%
Order book, period end3.5412.84724%3.5412.84724%
service sale35428922%1.2641.07617%
Sales of services, % of sales29%32%31%32%
Sale of ecological portfolios26816661%96462654%
Ecological portfolio sales, % of sales22%18%24%19%
operating result-28.88.3< -100 %106.1355.7-70%
Operating Income, %-2,3%0,9%2,6%10,7%
comparable operating result88.645.595%332.1231.543%
Comparable Operating Profit, %7,2%5,0%8,1%7,0%
profit before taxes-40,64.7< -100 %79,0333.1-76%
Cash flow from operations before financial items and taxes147.259.7> 100 %231.2169.337%
Period Utility-67,6-8.2< -100 %23.2246.7-91%
Basic earnings per share, EUR-1.04-0,13< -100 %0,373.82-90%
Interest-bearing net debt at the end of the period378414-9%378414-9%
Gang, %24,8%26,8%24,8%26,8%
Remunerated Net Debt / EBITDA*1.20,91.20,9
Return on Capital Employed (ROCE), letzte 12 Monate, %4,6%14,5%4,6%14,5%
Employees, end of period11.52611.1743%11.52611.1743%

* EBITDA for the last 12 months

When calculating the balance sheet-related ratios, the assets held for sale and the liabilities associated with the assets held for sale are included in the corresponding groups of accounts, although they are presented in one line on the balance sheet.

Cargotec CEO Mika Vehviläinen: Successful and eventful year with many nuances

The year 2022 was an excellent year for Cargotec. The year was marked by several global crises; However, Cargotec's order intake, sales and comparable operating profit were all at record levels.

The implementation of the realigned strategy published in March has got off to a successful start. Kalmar's exit from the large crane business has been completed and changes have been made to the operating model aimed at increasing the independence of the businesses. With regard to the evaluation of MacGregor's strategic options, the Board of Directors of Cargotec decided in November that MacGregor will no longer be part of the Cargotec portfolio in the future.

Cargotec's comparable operating profit margin was around 8 in 2022, when its core businesses Hiab and Kalmar had comparable operating profit margins above 11. The positive development of Hiab and Kalmar continued and their excellent performance in the seasonally strong fourth quarter ensured that Cargotec's comparable operating profit for 2022 increased to a record level of 332 million euros.

MacGregor's result was a disappointment. Fourth quarter comparable operating profit was negative by 31 million euros due to investments in offshore wind projects and cost overruns as well as the MacGregor portfolio streamlining, which had a material negative impact on operating profit. We have taken steps to ensure the best possible shareholder value in the sale of MacGregor. Despite the disappointing result, MacGregor's merchant shipping and services business performed well and was profitable. Excluding the offshore wind business, MacGregor's comparable operating profit margin would have been around 3 percent in 2022.

In 2022, we are releasing new performance targets for our core businesses and underscoring our strategy to grow profitably by solving our customers' sustainability challenges. The goals are sales growth faster than the market; comparable operating income of 12% in 2025 and 15% in 2030; double the sales growth of the eco wallet compared to traditional products; and a reduction of greenhouse gas emissions in the value chain by at least 50 percent by 2030 compared to 2019 levels. Although our emissions intensity has decreased in 2022 compared to 2019 levels, the increase in CO2 emissions in the core businesses Hiab and Kalmar was 15% , in the entire Cargotec value chain it was 5%. The combination of financial and sustainability goals shows how central sustainability is to Cargotec's strategy.

We continue to invest in product development to support our customers' businesses and promote green solutions. For example, Kalmar has started series production of all-electric forklifts, while Hiab now offers an electric version of all of its truck-mounted forklifts. These and many other of our eco-efficient solutions have been very well received by our customers. Sales of green portfolios rose by 54 percent year-on-year to EUR 964 million. In the core businesses, the increase in portfolio sales was in line with our announced targets, ie twice as high as for traditional products.

In addition to strong technological knowledge, the service business is also one of our strengths. The excellent development continued in 2022 with an increase in order intake by 11% and service sales by 17% to a record value of 1,264 million euros. Services accounted for 31 percent of our consolidated sales. The profitability of our service business is at an excellent level and still offers a lot of growth potential, for example by increasing the spare parts registration rate. This supports our goal of increasing our recurring revenue.

In December, I informed Cargotec's Board of Directors of my intention to retire from Cargotec during 2023. The Board of Directors has started looking for a successor. In 2023 it will be ten years since I took office. I believe this is the right time to welcome a new CEO who will lead the financially and operationally strong Cargotec into its next phase of development. It has been a pleasure and a privilege to lead Cargotec's transformation and development together with so many dedicated and talented colleagues, customers and partners.

Cargotec enters 2023 with a record order backlog. However, current economic forecasts and the global situation as well as price increases and material and component availability problems still cause uncertainty. We are well prepared and able to react to rapid changes in the market situation. In addition, our financial position is strong with only a small portion of our loans maturing this year.

I would like to thank our employees for their commitment and our customers and shareholders for their trust in 2022.

Key figures from reporting segments

received orders

BRANCH OFFICEQ4/22Q4/21To change20222021To change
internal orders0000
In total1.1901.05113%4.8624.42710%

order book

BRANCH OFFICEDecember 31, 2022December 31, 2021To change
Internal order book10
In total3.5412.84724%


BRANCH OFFICEQ4/22Q4/21To change20222021To change
Internal Sales00-1-1
In total1.23991036%4.0893.31523%

operating result

BRANCH OFFICEQ4/22Q4/21To change20222021To change
Kalmar67.032.6> 100 %142.1344,5-59%
macgregor-143,6-32.1< -100 %-190.2-40,0< -100 %
Support functions and business administration-13.5-26,249%-62,9-93,533%
In total-28.88.3< -100 %106.1355.7-70%

comparable operating result

BRANCH OFFICEQ4/22Q4/21To change20222021To change
macgregor-31,4-23,7-33%-36,0-14.7< -100 %
Support functions and business administration-11.8-7.7-52%-46,3-40,1-fifteen%
In total88.645.595%332.1231.543%

Conference call for analysts, investors and media

A live international conference call for analysts, investors and the media will be held at 10:00 am on the day of publication. m.TSE. The event is in English. The report will be presented by CEO Mika Vehviläinen and CFO Mikko Puolakka. The presentation material will be available by 9:30 a.m. at the latest. m.TSE.

To ask questions, please join the conference call by registering using the link below: . After registration, conference phone numbers and a conference ID will be provided to access the conference. Questions can be asked during the conference. If you have any questions, please press *5 on your phone keypad to join the queue.
The event can also be viewed as a live webcast on . The conference call will be recorded and an on-demand version of the conference will be posted to Cargotec's website later in the day.
Please note that by dialing into the telephone conference, the participant agrees that personal data such as name and company name will be collected.

For more information contact:
Mikko Puolakka, Finanzdirektor, Tel. 5
Aki Vesikallio, Vice President Investor Relations, Tel. 0

Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flows for a better everyday life with its leading cargo handling solutions and services. The Cargotec Kalmar, Hiab and MacGregor divisions are pioneers in their fields. Due to their unique position in ports, at sea and on roads, they optimize global freight flows and create sustainable customer benefits. Cargotec has signed the United Nations Global Compact Business Ambition for 1.5°C. The company achieved sales of around 4 billion euros in 2022 and employs around 11,500 people.


GlobeNewsWire - Cargotec Oyj Classe B (CGCBV) Review of Cargotec's 2022 financial statements: Record year for Kalmar and Hiab (1)
GlobeNewsWire - Cargotec Oyj Classe B (CGCBV) Review of Cargotec's 2022 financial statements: Record year for Kalmar and Hiab (2)

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