Cargotec’s Interim Report January–September 2008 Q3 · 2009. Furthermore, Somaport operating in...

Cargotec’s Interim Report

January–September 2008

Q3

2 Cargotec’s Interim Report for January–September 2008

Cargotec’s Interim Report for January–September 2008

• Cargotec’srestructuringmeasuresannouncedinSeptemberaim,inadditiontoadjustingcapacity,atanannualresultimprovementof

approximatelyEUR25million.Theplanaffectssome700people.Thesavingsactionsareexpectedtoresultincostsandassetwritedownsof

approximatelyEUR35million.

• OrdersreceivedduringJanuary–September2008totalledEUR3,136(2,892)million.Duringthethirdquarter,ordersreceivedwereEUR967

(1,028)million.

• Theorderbookcontinuedtostrengthen,reachingEUR3,486(December31,2007:2,865)million,attheendofthereportingperiod.

• SalesgrewinJanuary–Septemberby15percent,amountingtoEUR2,476(2,151)millionwithservicessalesrepresenting26(25)percentof

totalsales.SalesforthethirdquarterwereEUR848(713)million.

• OperatingprofitforJanuary–SeptemberwasEUR156.9(156.8)millionwithEUR49.6(52.5)millionattributabletothethirdquarter.Operating

marginforJanuary–Septemberwas6.3(7.3)percentand5.8(7.4)forthethirdquarter.

• CashflowfromoperatingactivitiesbeforefinancialitemsandtaxestotalledEUR158.1(138.8)million.

• NetincomeforthereportingperiodamountedtoEUR111.9(109.5)million.

• EarningspershareforJanuary–SeptemberwereEUR1.77(1.72).

• Thenumberofpersonneltotalled12,000(December31,2007:11,187)attheendofSeptember.

• Themarketsituationinthelargeprojectsideofcontainerhandlingishealthy,andoffersareatahighlevel.Ontheotherhandinconstruction

relatedcustomersegmentsinEuropeandtheUSthemarketsituationinloadhandlinghasfurtherweakenedfromSeptember.Theship

buildingmarketiseveningoutasearlierexpected.Orderintakeinthefinalquarteroftheyearisaccordingtoearlierexpectationsexpected

tobebelowthehighlevelofpreviousquarters.Cargotec’s2008salesgrowthisexpectedtobeapproximately13percent.Thegrowthrate

inthefinalquarterislikelytoslowfromJanuary–Septemberduetotheeconomicuncertaintyandapossibilityofprojectdeliveries

beingdelayed.Operatingmarginforfullyear2008isestimatedtobeattheJanuary–Septembermarginlevel.Themarginestimateis

excludingtheexpectedcostsandassetwritedownsfromrestructuringoperations,intotalapproximatelyEUR35million.

Operating Environment

Themarketsforloadhandlingequipmentweakenedduringthe

thirdquarterinWesternEurope.Theconstructionindustrydecline

visibleinSouthernEuropeduringthefirsthalfof2008expanded

intotherestofWesternEuropeloweringorderintakeinthe

thirdquarter.InAsiaPacific,growthremainedhealthy,withthe

exceptionofJapan.IntheUnitedStates,demandforloadhand-

lingequipmentcontinuedweak.

Themarketsforcontainerhandlingequipmentremainedhealthy.

Themarketforreachstackers,straddlecarriersandrubber-tyred

gantry(RTG)craneswereespeciallyactive.Duetoeconomic

uncertainty,demandformediumandlightforklifttrucksaswell

asterminaltractorsinmaturemarketsweakenedtowardsthe

endofthethirdquarter.Portoperators’interestinautomation

remainedstrong.Severalautomationprojectsareinsimulation

andplanningphase.

Themarketsformarinecargoflowsystemsandoffshoresolu-

tionscontinuedtobelively.Demandforshipcranes,hatchcovers

andcargosecuringsystemsremainedhigh,reflectingstrongde-

mandforequipmentforbulkcarriersandgeneralcargovessels.

Theturbulenceinthefinancialmarketsisexpectedtoslowdown

newshipordersfortheremainderoftheyear.Containership

marketweakenedduringthethirdquarter.Demandforoffshore

solutionsremainedlively.

Demandforservicesremainedfavourableinthethirdquarter:

customersareincreasinglyinterestedinimprovingtheiroperatio-

nalflexibility.Inemergingmarkets,highusageratesofequipment

supporteddemandforservices.ServicedemandinEurope

remainedhealthy.IntheUS,thefurtherweakenedeconomicenvi-

ronmentaffecteddemandforservices.Demandformarinecargo

serviceswassupportedbyhighactivityinrepairshipyards.

Orders Received

OrdersreceivedbyCargotecinJanuary–SeptembertotalledEUR

3,136(2,892)million.Thevalueoforderssecuredduringthethird

quarterwasEUR967(1,028)million.


Orders received, MEUR 1-9/2008 1-9/2007 1-12/2007

Hiab 661 731 985

Kalmar 1,217 1,083 1,429

MacGREGOR 1,264 1,080 1,696

Internalordersreceived -7 -3 -4

Total 3,136 2,892 4,106

Hiab

OftotalordersreceivedinJanuary–September,Hiabaccounted

forEUR661(731)millionwhileitsshareofordersreceivedin

July–SeptemberwasEUR194(223)million.Ordersreceivedhave

declinedasaresultofadropindemandinconstructionrelated

customersegmentsintheUSandalsoinWesternEuropeduring

thethirdquarter.

Hiabsecuredalargenumberofsmallindividualorders,whichis

typicalofitsoperations.Demandfordemountablesystems

continuedhealthy,Hiabbookinganorderfor90ofsuchunits

duringthesecondquartertobedeliveredtotheUnited

Kingdom’sMinistryofDefence.Furthermore,Hiabdelivered

demountablesanddeepwastecollectionunitstotheOlympic

VillageinBeijing,China.

InSeptember,HiabreceivedanorderfromBAESystemsInc.

intheUS,whichspecialisesinthedevelopment,deliveryand

supportofadvanceddefenceandaerospacesystems.Theorder

includes428loadercranesand32hooklifts.Amajorpartofthe

orderwasbookedinthethirdquarter.Deliveryoftheequipment

willstartduringthefourthquarterof2008,withmostofthe

deliveriestakingplaceduring2009.

Kalmar

OftotalordersreceivedinJanuary–September,Kalmaraccounted

forEUR1,217(1,083)millionwhileitsshareofordersreceivedin

July–SeptemberwasEUR365(324)million.Amajorpartofthebig

ordersreceivedwillbedeliveredin2009.Severalordersinclude

navigation,containerpositionverificationandremotemonitoring

systemsdevelopedbyKalmar.Orderintakeforreachstackerswas

onarecordhighlevelduringthethirdquarter.

Duringthethirdquarter,Kalmarbookedasignificantorderfor

E-One+rubber-tyredgantrycranes(RTG)fromSouthAfrica.A

totalof32RTGswillbedeliveredtoTransnetPortTerminalin

CapeTown,SouthAfricastartinginthesummerof2009withthe

lastunitsarrivinginautumn2010.

Duringthereportingperiod,Kalmaralsoreceivedanorder

ofsevenE-One+rubber-tyredgantrycranes(RTG)and10reach-

stackersfromIndianArshiyaInternational.Thedeliveryofthis

equipmentisscheduledtostartattheendof2008.

InJune,Kalmarreceivedanorderfor30terminaltractors,

sevenE-One+rubber-tyredgantrycranes(RTG)andfivereach-

stackersfromSociedadPortuariaRegionaldeCartagena(SPRC)

ofColombia.ThisequipmentwilloperateatSPRC’snewContecar

terminalinCartagena.Thesmallerequipmentisscheduledtobe

on-sitebyNovember,andtheRTGswillbeoperationalbyMay

2009.

InMay,Kalmarreceivedanorderfor30straddlecarriersfrom

TransnetPortTerminals(TPT)ofSouthAfrica.Thedeliveriesto

TPT’scontainerterminalinthePortofDurbanbeganinthe

summer,withthefinalunitsarrivinginJanuary2009.

InMarch,Kalmarreceivedanorderfor48EDRIVE®straddle

carriersforEurogate’soperationsinGermany.Atotalof22units

havebeenorderedforEurogate’sCTBBremerhavencontainer

terminal,and13unitswillgotoEurogate’sCTHHamburg.

Another13unitswillbedeployedattheMSCGateBremerhaven

terminal,ajointventurebetweenEurogateandMediterranean

ShippingCompany.Equipmentdeliveriesbeganintheautumn

withthelastunitsarrivingatthebeginningof2009.Inaddition,

KalmarprovidedStevecoOywithtenKalmarEDRIVE®straddle

carriersfortheMussalocontainerterminalinKotka,Finland.

Duringthefirstquarter,KalmarreceivedE-One+rubber-tyred

gantrycranes(RTG)ordersfrom,forexample,Vietnam,Thailand,

India,BrazilandMorocco.Kalmarwilldeliver17ofthesecranes

toVietnamInternationalContainerTerminals’HoChiMinhCityfa-

cilitybetween2008and2010.LCMTCompanyLtd.fromThailand

orderedsixRTGsforitsterminalatthePortofLaemChabang.

ThecranesareduetofordeliverybyMarch2009.Kalmarwill

alsodeliver11RTGstoGatewayTerminalsIndiaatNhavaSheva

inJanuary2009.SouthAmerica’slargestcontainerterminal

operator,SantosBrasilS/A,ordered12RTGsfordeliverybyMarch

2009.Furthermore,SomaportoperatingintheportofCasablanca,

Morocco,orderedtenRTGstobedeliveredinearly2009.

InFebruary,Kalmarreceivedanorderfor22E-One+rubber-tyred

gantrycranes(RTGs)fromSouthAfricanTransnetLimited.This

equipmentwillbedeliveredin2008–2009forthenewPortof

Ngqura.InFebruary,KalmaralsosecuredanorderfromthePort

ofTacomaontheUSWestCoastforthesupplyofsevenstraddle

carriers.Thesewillbeusedincontainerhandlinginon-dockrail

facilitiesandwillbeequippedwithKalmar’smonitoringsystem,

speedinguptheiroperation.Deliveryofthemachinesis

scheduledfortheautumnof2008.

4Cargotec’s Interim Report for January–September 2008

MacGREGOR

Oftotalordersreceivedduringthereportingperiod,MacGREGOR

accountedforEUR1,264(1,080)millionwhileitsshareoforders

receivedinJuly–SeptemberwasEUR411(483)million.Orders

receivedwerestillonahighlevelreflectingthehighvolumesin

shipordersduringearly2008.

Duringthethirdquarter,MacGREGORreceivedsignificanthatch

cover,shipcraneandRoRoequipmentordersfromKorea,Singa-

pore,ChinaandJapan.Atotalof39hatchcoverswillbedelivered

forcontainerships.Anorderofnewshipcranesandhatchcovers

forfourheavy-liftvesselswasreceivedfromSingapore.RoRo

equipmentandhoistablecardeckswillbedeliveredfor16pure

car/truckcarriersin2009–2011.

InAugust,theOffshoredivisionreceivedamajororderfortwo

activeheavecompensatedoffshorecranesfromaFinnish

Finstaship.Thecraneswilldeliveredduringthesecondhalfof

2010.

Duringthesecondquarter,MacGREGORobtainedextensivehatch

coverandRoRoequipmentorders,mainlyfromKoreaandJapan.

Thehatchcoverordersareforalargenumberofcontainerand

bulkvesselstobedeliveredin2009–2012.TheRoRoequipment

ordersincludethedesignandmanufactureofRoRoequipment

aswellashoistablecardecksforfourdeep-seaConRos(vessels

carryingbothcontainerandRoRocargo).Theequipmentwillbe

deliveredin2010–2011.

InJune,MacGREGORsignedacontracttosupplyself-loadingand

unloadingcementhandlingsystemsforthreecementcarriers.

Deliveriesofthesystemswillbeginduringsummer2009.

InMay,theOffshoredivisionreceivedacraneorderfromthe

US-basedEdisonChouestOffshore,itsthirdwithin18months.The

craneswillbedeliveredbythefirstquarterof2009.Furthermore,

alargenumberoforderswerereceived,inparticularfordavits,

fordeliveryduring2008–2009.

Duringthefirstquarter,MacGREGORreceivedalargenumberof

shipcraneandhatchcoverorders,mainlyfromChinaandKorea.

MacGREGORwilldeliveratotalof276bulkhandlingcranesfor

vessels,tobedeliveredtoshipownersinGermany,Singapore,

ChinaandKorea.MacGREGORalsoagreedtodeliverhatchcovers

for70containervessels,120bulkvesselsand41generalcargo

ships.Theequipmentwillbedeliveredin2009–2011.

InMarch,MacGREGORreceivedamajorbulkhandlingequipment

orderfromtheTaiwanPowerCompanyforcoal-handlingequip-

ment.MacGREGOR’sSiwertellbulkhandlingsystemfeaturesa

totallyclosedconveyingsystemthatlimitstheamountofcargo

dustreleasedintotheair.

InMarch,MacGREGORalsoreceivedanorderfor30shipsets

oftankercranesforaChineseshipyard.Provisionandhose

handlingcraneswillbedeliveredin2008–2010fortankers

orderedbyTurkish,Norwegian,RussianandCypriotshipowners.

InJanuary,MacGREGORreceivedRoRoequipmentordersfor12

purecar/truckcarriers(PCTCs).Theseordersincludehoistable

cardecksforfourvesselsthatwillbebuiltintheKoreanHyundai

HeavyIndustriesshipyardanddeliveredduring2009–2010.

Additionally,theordersincludethedesignanddeliveryofkey

componentsforeightPCTCsunderconstructioninChina.

Cargotec Services

Theservicesmarketcontinuedtobeactive,whichwasreflected

inthenumberofmaintenanceandmodernisationcontractsas

wellassparepartordersreceived.Maintenancecontractswere

receivedfromEuropeanaswellasemergingmarketcustomers

inforexampleIndia,RussiaandAfrica.Cargoteccontinuedto

enhanceitsservicenetwork.

Themarketforshipconversionswasveryactiveandseveral

orderswerereceivedtobecarriedoutduring2008–2009.

However,theeconomicuncertaintyhassloweddowndemand

recently.InSeptember,hatchcoverconversionorderswere

receivedforfourtankersconvertedintobulkersfromEverlast

ShippingS.A.inGreece.Thesenewordersfollowanearlierorder

receivedattheendoflastyearfromthesameowner.Contracts

receivedduringMayincludeoneforthesupplyofelectrically

drivenhoistablecardecksforFinnlines’twoRoRovesselsaswell

asacontractfortheconversionofcontrolsystemsonavessel.

InMay,afive-yearoperationandmaintenancecontractfor

rubber-tyredgantrycranes(RTG)andreachstackerswassigned

withArshiyaInternationalinMumbai,Indiaandathree-year

leasingandfullmaintenancecontractforreachstackersinthe

portofGothenburg,Sweden.

AdditionalcontractsincludefromAprilafive-yearfullmainte-

nancecontractonfourship-to-shorecranesthatwillbeoperated

intheportofVuosaari,Finland.Anothercontractinthesameport

coversthemaintenanceofstraddlecarriers,terminaltractorsand

reachstackers.

InMarch,afive-yearservicecontractwassignedwiththe

Norwegiancompany,NorsteveOslo,coveringthemaintenance,

sparepartsandrepairsoffivestraddlecarriersattheSjursøya

containerterminalinthePortofOslo.


Duringthefirstquarter,amajormaintenancecontractforship

unloaderswasreceivedfromthePhilippines.

Order Book

Cargotec’sorderbooktotalledEUR3,486(December31,2007:

2,865)milliononSeptember30,2008.Oftheorderbook,Hiab

accountedforEUR229(260)million,KalmarEUR778(660)million,

andMacGREGOREUR2,480(1,946)million.Anestimatedover80

percentofMacGREGOR’sorderbookwillbedeliveredbytheend

of2010.

Sales

Cargotec’ssalesgrewby15percentJanuary–Septemberand

totalledEUR2,476(2,151)million.Organicgrowthwas12percent.

ThisisaresultofincreaseddeliveryvolumesinKalmarand

MacGREGOR.

SalesforthethirdquarterwereEUR848(713)million.Hiab’ssales

amountedtoEUR209(202)million,Kalmar’sEUR386(326)million

andMacGREGOR’sEUR256(187)million.

Sales, MEUR 1-9/2008 1-9/2007 1-12/2007

Hiab 691 687 931

Kalmar 1,103 979 1,343

MacGREGOR 687 487 748

Internalsales -6 -2 -4

Total 2,476 2,151 3,018

SalesforservicesinJanuary–Septemberincreasedby17percent

year-on-yearandamountedtoEUR639(546)million,

representing26(25)percentoftotalsales.Thisgrowthwas

boostedbystrongdemandforsparepartsandmaintenance

agreements.Servicesaccountedfor23(17)percentofJanuary–

SeptembersalesatHiab,29(30)percentatKalmar,and23(27)

percentatMacGREGOR.

Financial Result

Cargotec’soperatingprofitforJanuary–SeptembertotalledEUR

156.9(156.8)million,representing6.3(7.3)percentofsales.The

operatingprofitincludesaEUR4.9(4.6)millioncostimpactfrom

thepurchasepriceallocationtreatmentofacquisitionsandEUR5

millionincostsfromtheOntheMovechangeprogramme.

Hiab’sprofitabilityforJanuary–Septemberwasweakenedby

lowerdemand,especiallyintheUnitedStatesbutalsoinsome

Europeancountries,increasedrawmaterialandcomponent

pricesandtheslowerandmoreexpensivethanexpectedramp-

upofthecomponentfactoryinNarva,Estonia.Kalmar’sresult

wasweakenedbyaEUR4millionprojectcostprovisionbooked

inthefirstquarterandaEUR5millionprojectcostprovision

bookedinthethirdquarter.MacGREGOR’sprofitability

developmentwasinlinewithexpectations.

Theweakenedmarketsituationweighedonthethirdquarter

result.Duetothis,planningofrestructuringmeasureswas

initiatedinSeptember.Theyareestimatedtoaffectsome700

people.ThemeasuresareaimedatadjustingcapacityinHiab

tobeinlinewiththeprevailingmarketsituationandimproving

Hiab’sandKalmar’sprofitability.

OperatingprofitforthethirdquarterwasEUR49.6(52.5)million,

equalto5.8(7.4)percentofsales.HiabaccountedforEUR9.5

(13.7)millionofthethirdquarteroperatingprofit,Kalmarfor

EUR25.8(27.8)million,andMacGREGORforEUR19.1(15.0)

million.

NetincomeforJanuary–SeptemberwasEUR111.9(109.5)million

andearningspershareEUR1.77(1.72).

Balance Sheet, Financing and Cash Flow

OnSeptember30,2008,Cargotec’snetworkingcapitalincreased

toEUR285(December31,2007:253)million.Theamountof

capitaltiedincomponentsandunfinishedproductscontinued

toincrease.Atthesametime,theamountofnetworkingcapital

employedwaspositivelyimpactedbyafurtherincreaseinthe

amountofadvancesreceived.Tangibleassetsonthebalance

sheetwereEUR273(254)millionandintangibleassetsEUR777

(751)million.

Cashflowfromoperatingactivitiesbeforefinancialitemsand

taxesforJanuary–SeptemberwasEUR158.1(138.8)million.The

dividendpaymentinJanuary–SeptembertotalledEUR65.9(63.9)

millionandacquisitionsamountedtoEUR40.4(169.3)million.

NetdebtwasEUR389(December31,2007:304)million.Thetotal

Order book, MEUR 30.9.2008 30.9.2007 31.12.2007

Hiab 229 255 260

Kalmar 778 684 660

MacGREGOR 2,480 1,614 1,946

Internalorderbook -1 0 -1

Total 3,486 2,552 2,865


equity/totalassetsratiowas35.3(38.3)percentwhilegearing

increasedto44.1(33.9)percent.

Cargotec’sfinancingstructureishealthy.Interest-bearingdebt

consistsmainlyoflong-termcorporatebondsmaturingfromthe

year2012onwards.OnSeptember30,2008,CargotechadEUR

635millionofunusedcreditfacilities.

ReturnonequityforJanuary–Septemberwas16.8(16.7)percent

andreturnoncapitalemployedwas15.1(17.6)percent.

New Products and Product Development

InJanuary–September,Cargotec’sresearchandproductdevelop-

mentexpenditurewasEUR33.3(33.2)million,representing1.3

(1.5)percentofsales.

InApril,CargotecopenedanengineeringcentreinPune,India,

providingengineeringresourcesinemergingmarketsinsupport

ofproductdevelopmentthatbetterrespondstolocalneeds.The

engineeringcentrehasbeenestablishedasaresourcepoolfor

CargotecR&Dcentresaroundtheworld.Itcoversvariousengi-centresaroundtheworld.Itcoversvariousengi-aroundtheworld.Itcoversvariousengi-

neeringactivitiesfromdraftingtostructuralanalysisaswellas

softwareengineering.Itisplannedthattheoperationwillinvolve

over50personsbytheendoftheyear.

InSeptember,Hiabexpandeditscraneofferingwithasolution

thatfulfilsthenewEU-standardandenablesusingtruck-mounted

cranestoliftpersonnelbaskets.

Hiabintroducedanewautomaticloadcoveringsystemtobe

usedwithdemountableunitswhentransportingwasteand

recyclingmaterials.

Duringthefirstquarter,Hiabopenedastate-of-the-artcrane-

testingcentreatitsloadercraneproductionfacilityinHudiksvall,

Sweden.ThecentreoffersHiabandotherbusinessareastheop-

portunitytotestmoreandlongercranesandcomponentsaswell

asensuringthattestingismoreprecisethanbefore.

EarlierthisyearKalmarlaunchedtheProFuture™concept

encompassingallofitsenvironmentallyfriendlyequipment.This

equipmentwillberatedagainstfiveecological decision-making

drivers:sourceofpower,energyefficiency,emissions,noisepollu-

tionandrecyclability.

Duringthethirdquarter,KalmarintroducedtwonewProFuture™

solutions:avariablespeedrubber-tyredgantrycraneanda

variablespeedelectricstraddlecarrier.Variablespeed

technology(VSG)enablestheengineandgeneratorspeedtobe

reducedtotheoptimumlevel,enablingfuelsavingsandcarbon

dioxideemissioncutsofupto10–15percentcomparedtostand-

ardelectricdrivenequipment.Thistechnologyeffectivelymeets

endcustomerexpectationsduetoitsreductionoffuelconsump-

tionandnoiselevels,itsimprovementofenginelifetimecycles

andtheextracostinvolvedbeinglowerthanforhybridsolutions.

Additionally,anelectricforklifttruckwaslaunchedinthemedium

liftrange.

Earlierthisyear,KalmarintroducedtwoProFuture™solutions:

anACelectricalforklifttruckforemptycontainerhandlinganda

hybridstraddlecarrier.Thehybridstraddlecarrieristhemarket’s

firstself-chargingcarrierwhich,thankstoitsspeedcontrol,en-

ergystorageandrecyclingtechnology,enablesfuelsavingsand

carbondioxideemissioncutsofupto25–30percentcompared

tostandardstraddlecarriers.Kalmarreceivedthefirstorderfora

hybridstraddlecarrierduringthethirdquarter.Duringthereport-

ingperiod,Kalmaralsointroducedanewmediumrangeterminal

tractorofferingbetterergonomicsanddrivercomfortaswellas

lowernoiselevelsthanearliermodels.

Duringthefirstquarter,Kalmarlaunchedanew,fully-automated

shuttlecarrierthatisabletopick,placeandtransportcontainers

betweenship-to-shore(STS)andyardstackingcraneswithouta

driver.ThenewKalmarAutoshuttle™ensuresthecostefficiency,

productivityandflexibilityofportoperations,particularlyinthe

verybigportsofthefuture.

MacGREGORcontinuedtodevelopelectronicallyoperatedcargo

handlingsolutionsandanewshipcranecontrolsystem.The

Offshoredivisionfocusedonthedevelopmentofdeckequip-

mentenablingtheuseofcranesindifficultweatherconditions

andwhenoperatingindeepwaters.InSeptember,MacGREGOR

signedthefirstcontracttodelivertotallyelectrically-drivensetsof

RoRoequipmenttotwopurecar/truckcarriers.

InFebruary,MacGREGORsignedanagreementwiththeUSNavy

onthedevelopmentofaship-to-shipvehicletransfersystem.

Withthehelpofthissystem,largevehiclescanbetransferred

fromoneshiptoanotherwhiletheshipsareinmotion.Theproto-

typeofthesystemwillbedeliveredbytheendof2009.

Capital Expenditure

Cargotec’scapitalexpenditureforJanuary–September,

excludingacquisitionsandcustomerfinancing,totalledEUR47.1

(38.0)million.InvestmentsincustomerfinancingwereEUR26.0

(23.5)million.


InApril,Cargotecformedasubsidiary,CargotecPortSecurity,

todevelopenhancedcontainersecuritysolutions.Cargotechas

beenexploringandinvestingintheareaofradiationdetectionin

containersecurityforthepasttwoyears.Ithasenteredintoan

exclusiveglobaltechnicallicensingagreementwiththeUS-based

InnovativeAmericanTechnology,andhassuccessfullyfieldtested

spreader-mountedradiationdetection.

Duringthesecondquarter,Hiabinitiatedtheextensionofataillift

productionplantinOborniki,Poland.Theprojectwillbecomplet-

edduring2008.InKorea,Hiabisinvestinginanewpaintinglineat

theloadercranesproductionunit.Anotherprojectwasfinalised

inRaisio,Finland,resultinginamajorincreaseintheproduction

capacityofdemountablesystemsduetotheimplementationofa

morecompetitiveproductionprocess.

Duringthesecondquarter,Kalmarstartedtoexpanditsproduc-

tionfacilityforrough-terraincontainerhandlingequipmentin

Cibolo,Texas,USAaswellasinitiatinganexpansionofcapacity

inIpoh,Malaysiaforcontainerspreaders.Investmentsinthefirst

quarterincludeexpandingitspresenceintheAmericasby

openinganewsalescompanyinMexicoaswellasanewservice

unitinZeebrugge,Belgium.

InMarch,MacGREGORopenedanewoffshoreequipmentpro-

ductionunitinTianjin,China,approximatelyhalfofitsproduc-

tionbeingdeliveredtovariouspartsofChina.Thenewunitalso

enablesproductionoptimisationandefficiencyimprovements

intheoffshoreproductionunitsofNorwayandSingapore.Part

ofoffshorecranesproductionhasbeenmovedfromNorway

toSingaporetomakeroomfortheincreasedproductionof

biggersizecranesinNorway.Theadditionalcapacityprovided

bythecompany’sowninvestmentsaswellasinvestmentsmade

byitspartnerswillplayanimportantroleintheongoingmajor

increaseindeliveries.

On the Move change programme

InJanuary,CargotecannouncedthelaunchofanextensiveOn

theMovechangeprogrammeaimingataprofitabilityimprove-

mentofEUR80–100million.Thechangeprogrammeaimstoform

abasisforprofitablegrowththroughimprovedcustomerfocus

andefficiency.Theprojectsinthefirstphasehavefocusedon

streamliningsupportfunctionsandcompanystructureaswellas

initiatingITprojectsthatimproveefficiency.Thecountrystructure

streamliningstartedinFinlandhasbeenexpandedtoseveral

countries.InFinlandandSwedenalloperationswillbetransferred

toonecompanypercountryattheyear-end.Theseprojects

are,duetoanacceleratedtimetable,expectedtoincurcostsof

approximatelyEUR10millionin2008,whichisclearlymorethan

expectedinthebeginningoftheyear.

InordertoimproveclosenesstocustomersHiab,Kalmarand

MacGREGORhavechangedtheirstructuretowardsmorecus-

tomerorientedorganizationsduringthereportingperiod.

Duringthethirdquarter,thefocuswasondevelopingtheglobal

supplyfootprintclosertocustomersaswellastowardslower

costenvironments.Toimprovethesupplychain,Cargotecis

planningtoestablishanewassemblyfactoryinPolandmainlyfor

Kalmarequipment.

ThefirstjointsupplychainprojectsareproceedinginChina

andEstonia.TheproductioncapacityinShanghai,Chinawillbe

doubled.TheexpansionwillincludemovingHiab’sassemblyunit

tothesamesiteastheexistingKalmarfacility.Thecapacityand

productivityoftheproductionunitinNarva,Estonia,acquiredin

2007,arebeingupgradedinordertomeetincreasedcomponent

needs.InvestmentsinitiatedsofartoexpandCargotec’sglobal

supplyfootprintareexpectedtoamounttoclosetoEUR50

millionfor2008.

Acquisitions

DuringJanuary–September,Cargoteccompletedsevenacquisi-

tions,ofwhichfourwereinHiab’sbusinessarea.

InordertostrengthenitsR&Dcapabilities,Cargotecacquired60

percentofIdeaDesigning&ConsultingS.r.l.inMassa,Italy.The

companyemploystenpeopleinproductdesign.

InAugust,KalmarsignedanagreementtoacquireArgentina-

basedEquiposyServiciosparaTerminalesyPuertosSRL(ESTP).

ThecompanyhasbeenappointedasKalmar’sdealerforArgenti-

na,UruguayandParaguay.Inadditiontonewequipmentdistribu-

tion,thecompanyprovidesequipmentcommissioning,technical

andsparepartsupport,andequipmentrepairandrefurbishment

inSouthAmerica.Thecompany’ssalesin2007wereclosetoEUR

1millionanditemploys17people.

InJune,Hiabconcludedanagreementtoacquirethebusinessof

along-termdistributoroftailliftsinNewZealand.Inadditionto

tailliftsales,thebusinesscomprisesinstallation,repairs,mainte-

nanceandsparepartssales.TheacquisitionwasclosedinJuly.

AttheendofMarch,Hiabconcludedanagreementtoacquire

theoperationsoftheSouthAfricancompanyBowmanCranes

(Pty)Limited,Hiab’slong-termagentintheregion.Thiscompany

supplies,installsandservicestruck-relatedloadhandlingequip-

ment.In2007,itssaleswereapproximatelyEUR18millionandit

employs70people.


InFebruary,Hiabsignedanagreementtoacquire70percentof

theoperationsofanAustraliancompany,O’Leary’sMaterialHan-

dlingServicesPtyLtd.,theleadingsupplieroftailliftsinWestern

Australia.Thecompanyemploys24peopleandhadsalesof

approximatelyEUR2.6millionin2007.

InFebruary,HiabalsoagreedtoacquireUK-basedDelEquipment

(UK)LimitedandUS-basedUltronLiftCorp.Bothofthese

companiesmanufacturetaillifts.Theaggregatesalesofthe

companiesin2007wereapproximatelyEUR23millionandthe

companiesemploy164persons.

InApril,MacGREGORsignedanagreementtoacquireUS-based

PlatformCraneService,Inc(PCS).Thesalesofthecompany

in2007totalledUSD16millionandthecompanyemploys105

persons.

Employees

OnSeptember30,2008,Cargotecemployed12,000(September

30,2007:11,081)people,theyear-on-yearincreasebeing

attributabletotheacquisitionsconcluded.Hiabemployed4,508

(4,405)people,Kalmar4,777(4,431),andMacGREGOR2,548

(2,162).

OfCargotec’stotalemployees,13(14)percentwerelocatedin

Finland,20(22)percentinSwedenand30(30)percentintherest

ofEurope.NorthandSouthAmericanpersonnelrepresented

11(11)percent,AsiaPacific24(22)percentandtherestofthe

world2(1)percentoftotalemployees.

Shares, Share Capital and Stock Options

Cargotec’ssharecapitalonSeptember30,2008totalledEUR

64,272,120.ThesharecapitalincreasedbyEUR51,747duringthe

reportingperiodasaresultofthesubscriptionforclassBshares

underCargotecoptionrights.OnSeptember30,2008,thenumber

oflistedclassBsharestotalled54,746,031whilethatofunlisted

classAsharestotalled9,526,089.Attheendofthereporting

period,Cargotecheldatotalof2,990,725classBshares,which

correspondsto4.7percentofthetotalnumberofshares.Trading

in2005AstockoptionsendedinMarch.Theremaining2005B

stockoptionsmaybeusedtosubscribeforafurther136,890

classBshares,therebyincreasingCargotec’ssharecapitalby

EUR136,890.

Market Capitalisation and Trading

TheclosingpriceofCargotec’sclassBsharesonSeptember

30,2008wasEUR14.22.TheaveragesharepriceforJanuary–

SeptemberwasEUR25.47,thehighestquotationbeingEUR36.49

andthelowestEUR14.05.InJanuary–September,approximately

65millionCargotecclassBsharesweretradedontheNASDAQ

OMXHelsinki,correspondingtoaturnoverofapproximatelyEUR

1,665million.

OnSeptember30,2008,thetotalmarketvalueofCargotecclass

BshareswasEUR736million,excludingtreasurysharesheld

bytheCompany.Theperiod-endmarketcapitalisation,inwhich

unlistedclassAsharesarevaluedattheaveragepriceofclass

Bsharesonthelasttradingdayofthereportingperiod,wasEUR

889million,excludingtreasurysharesheldbytheCompany.

Changes in Cargotec’s Management

OnFebruary1,2008,Cargotec’sDeputyCEOKariHeinistöwas

appointedtoleadtheOntheMovechangeprogramme.He

continuesasamemberoftheExecutiveBoardandsecretaryto

Cargotec’sBoardofDirectors.EevaSipilä(formerlyMäkelä)was

appointedasCargotec’sCFOasofFebruary1,2008.Sheis

responsibleforaccounting,finance,riskmanagement,investor

relationsandcommunications,andwillcontinueasamemberof

theExecutiveBoard.MinnaKarhuwasappointedasVicePresi-

dent,CorporateCommunicationsofCargotecasof

February1,2008.

Decisions Taken at Cargotec Corporation’s Annual General Meeting

CargotecCorporation’sAnnualGeneralMeeting(AGM)washeld

onFebruary29,2008inHelsinki.Themeetingapprovedthe

financialstatementsandconsolidatedfinancialstatementsas

wellasgranteddischargefromliabilitytothePresidentandCEO

andthemembersoftheBoardofDirectorsfortheaccounting

periodJanuary1–December31,2007.

TheAGMapprovedtheBoard’sproposalofadividendofEUR

1.04foreachofthe9,526,089classAsharesandEUR1.05forthe

52,789,559outstandingclassBshares.

ThenumberofmembersoftheBoardofDirectorswasconfirmed

atsixaccordingtotheproposaloftheBoard’sNominationand

CompensationCommittee.HenrikEhrnrooth,TapioHakakari,Ilkka

Herlin,PeterImmonen,KarriKaitueandAnttiLagerrooswere

electedasmembersoftheBoardofDirectors.


AuthorisedpublicaccountantsJohanKronbergandPricewater-

houseCoopersOywerere-electedasauditorsaccordingtothe

proposalofAuditCommitteeofCargotec’sBoardofDirectors.

Inaddition,theAGMresolvedtoamendtheArticlesofAssocia-

tionmainlyduetoandtoalignwiththenewFinnishCompanies

Acteffectiveasfrom2006.

Authorisations Granted by the Annual General Meeting

TheAGMauthorisedtheBoardofDirectorsofCargotectodecide

onacquisitionoftheCompany’sownshareswithnon-restricted

equity.Thesharesmaybeacquiredinordertodevelopthe

capitalstructureoftheCompany,financeorcarryoutpossible

acquisitions,implementshare-basedincentiveplans,ortobe

transferredforotherpurposesortobecancelled.Thesharesmay

be acquiredthroughadirectedacquisitionasdefinedinFinnish

CompaniesAct,Chapter15§6.

Altogethernomorethan6,400,000ownsharesmaybe

purchased,ofwhichnomorethan952,000areclassAshares

and5,448,000areclassBshares.Theabove-mentionedamounts

includethe1,904,725classBsharesintheCompany’sposses-

sionontheAGMdate,whichwerepurchasedduring2005–2007.

Theproposedamountcorrespondstolessthan10percentof

thesharecapitaloftheCompanyandthetotalvotingrights.The

acquisitionofownshareswilldecreasethenon-restrictedequity.

Theauthorisationisineffectforaperiodof18monthsfromthe

dateofdecisionoftheAGM.

Inaddition,theAGMauthorisedtheBoardofDirectorstodecide

ontransferoftreasuryshares.TheBoardofDirectorswas

authorisedtodecidetowhomandinwhichorderthetreasury

shareswillbetransferred.TheBoardofDirectorsmaydecide

onthetransferoftreasurysharesotherwisethaninproportion

totheexistingpre-emptiverightofshareholderstopurchase

theCompany’sownshares.Thetreasurysharesmaybeusedas

compensationinacquisitionsandinotherarrangementsaswell

astoimplementtheCompany’sshare-basedincentiveplansin

themannerandtotheextentdecidedbytheBoardofDirectors.

TheBoardofDirectorshasalsotherighttodecideonthetransfer

ofthesharesinpublictradingattheNASDAQOMXHelsinkitobe

usedascompensationinpossibleacquisitions.Thisauthorisation

isineffectforaperiodof18monthsfromthedateofdecisionof

theAGM.

Organisation of the Board of Directors

Cargotec’sBoardofDirectorsinitsorganising meetingelected

IlkkaHerlintocontinueasChairmanoftheBoardandHenrik

EhrnroothtocontinueasDeputyChairman.Cargotec’sDeputy

CEOKariHeinistöcontinuestoactassecretarytotheBoardof

Directors.Cargotec’sBoardofDirectorsdecidedthattheAudit

Committee,NominationandCompensationCommitteeaswellas

WorkingCommitteecontinuetoassisttheBoardinitswork.

TheBoardofDirectorselectedamongitsmembersIlkkaHerlin,

KarriKaitueandAnttiLagerroosasmembersoftheAudit

Committee.KarriKaituewasre-electedasChairmanoftheAudit

Committee.BoardmembersHenrikEhrnrooth,TapioHakakari,

IlkkaHerlinandPeterImmonenwereelectedtotheNomina-

tionandCompensationCommittee.IlkkaHerlinwasre-elected

aschairmanoftheNominationandCompensationCommittee.

BoardmembersTapioHakakari,IlkkaHerlinandPeterImmonen

wereelectedtotheWorkingCommittee.IlkkaHerlinwas

re-electedaschairmanoftheWorkingCommittee.

Share Repurchases

Cargotec’sBoardofDirectorsdecidedtoexercisetheauthorisa-

tionoftheAGMtoacquiretheCompany’sownshares.

Inaccordancewiththeauthorisationtheshareswillbeacquired

inordertodevelopthecapitalstructureoftheCompany,finance

orcarryoutpossibleacquisitions,implementshare-based

incentiveplans,ortobetransferredforotherpurposesortobe

cancelled.

ClassBshareswillbepurchasedatpublictradingintheNASDAQ

OMXHelsinkiatthemarketprice.ClassAshareswillbepur-

chasedoutsidetheStockExchangeatthepriceequivalenttothe

averagepriceofclassBsharespaidintheNASDAQOMXHelsinki

onthepurchasedate.

Atotalof1,086,000ownshareswererepurchasedfollowingthe

AGManduntiltheendofSeptember2008atanaveragepriceof

EUR21.73.Cargotecheldatotalof2,990,725classBshareson

September30,2008.

Short-term Risks and Uncertainties

Theglobaleconomicenvironmentisinastateofmajor

uncertainty.Financialmarketturbulencehasincreasedshort-

termrisksanditsimpactsoninvestmentactivityaredifficultto

predict.Cargotecconsidersthatitsprincipalshort-termrisks

anduncertaintiesrelatetoglobaleconomicdevelopmentandits

impactoncustomerdemand.

10Cargotec’sInterimReportforJanuary–September2008Cargotec’s Interim Report for January–September 2008

Thereisanincreasedriskthattheeconomicuncertaintywill

spreadintogeneralinvestmentactivity,whichwouldaffect

demandforCargotecequipment.Lackoffinancingmaydefer

customers’investmentdecisionsorleadtoordercancellations.

Furthermore,thefinancialsituationofcustomersandsuppliers

hasanimpactoncollectingreceivablesandtheamountofcredit

losses.

Weakerdemandwillincreasetheneedforthecompanytoadjust

itsoperations.Profitabilitymaybenegativelyaffectedifthespeed

atwhichdemanddecreasesisfasterthantherateatwhich

restructuringmeasurescanbeimplemented.

Theavailabilityofcomponentshasslightlyimprovedandpricing

pressureshaveeased.However,thereisstillariskthatthesemay

createextracostsordelaydeliveries.

Restructuring program

AsaresultoflowerdemandandprofitabilityCargotecannoun-

cedinSeptemberthatitwouldinitiaterestructuringmeasures,

mainlyinWesternEuropeandNorthAmerica,affectingsome700

people.ThemeasuresareaimedatadjustingcapacityinHiabto

theprevailingmarketsituationandimprovingHiab’sandKalmar’s

profitability.Themainneedformeasuresplannedtoaffect

personnelisinFinland,SwedenandUSA.Finlandisestimatedto

accountforcloseto300people.

InordertoadjustHiab’scapacity,aplanhasbeendrawnto

consolidatecranemanufacturingcapacityinEuropeintothree

factories.Accordingtotheplanmanufacturingwouldcease

intheSalofactoryinFinland.AlternativesolutionsfortheSalo

factoryarebeinginvestigated.Inaddition,Hiab’smanufacturing

operationsatthetruck-mountedforkliftunitinOhio,USAwillbe

closedandmanufacturingwillbeconsolidatedtoajointCargotec

productionunitinKansas.

Thesavingsactionsaim,inadditiontoadjustingcapacity,atan

annualresultimprovementofapproximatelyEUR25million.The

savingsactionsareexpectedtoresultincostsandassetwrite

downsofapproximatelyEUR35million.

Outlook

Themarketsituationinthelargeprojectsideofcontainerhan-

dlingishealthy,andoffersareatahighlevel.Ontheotherhand

inconstructionrelatedcustomersegmentsinEuropeandtheUS

themarketsituationinloadhandlinghasfurtherweakenedfrom

September.Theshipbuildingmarketiseveningoutasearlier

expected.Orderintakeinthefinalquarteroftheyearisaccording

toearlierexpectationsexpectedtobebelowthehighlevelof

previousquarters.

Cargotec’s2008salesgrowthisexpectedtobeapproximately

13percent.Thegrowthrateinthefinalquarterislikelytoslow

fromJanuary–Septemberduetotheeconomicuncertaintyanda

possibilityofprojectdeliveriesbeingdelayed.

Operatingmarginforfullyear2008isestimatedtobeatthe

January–Septembermarginlevel.Themarginestimateis

excludingtheexpectedcostsandassetwritedownsfrom

restructuringoperations,intotalapproximatelyEUR35million.

Financial calendar

FinancialStatementsReviewJanuary–December2008on

MondayFebruary2,2009

Helsinki,October20,2008

Cargotec Corporation

BoardofDirectors

Thisinterimreportisunaudited.


Cargotec’s Interim Report January-September 2008

CondensedConsolidatedIncomeStatement

MEUR 7-9/2008 7-9/2007 1-9/2008 1-9/2007 1-12/2007

Sales 848.4 713.4 2,475.7 2,150.7 3,018.2

Costofgoodssold -688.6 -562.0 -1,981.9 -1,687.6 -2,376.8

Non-recurringitems* - - - - -18.0

Gross profit 159.8 151.3 493.7 463.1 623.4

Grossprofit,% 18.8 % 21.2 % 19.9 % 21.5 % 20.7 %

Costsandexpenses -95.7 -84.6 -294.6 -266.8 -360.8

Depreciation -14.6 -14.3 -42.3 -39.7 -59.8

Shareofassociatedcompanies’andjointventures’income 0.0 0.1 0.0 0.2 0.3

Operating profit 49.6 52.5 156.9 156.8 203.1

Operatingprofit,% 5.8 % 7.4 % 6.3 % 7.3 % 6.7 %

Financingincomeandexpenses -3.8 -4.3 -15.0 -12.1 -18.7

Income before taxes 45.8 48.2 141.8 144.7 184.4

Incomebeforetaxes,% 5.4 % 6.8 % 5.7 % 6.7 % 6.1 %

Taxes -4.0 -13.6 -30.0 -35.2 -46.0

Net income for the period 41.7 34.6 111.9 109.5 138.4

Netincomefortheperiod,% 4.9 % 4.9 % 4.5 % 5.1 % 4.6 %

Net income for the period attributable to:

EquityholdersoftheCompany 41.0 34.3 109.9 108.8 136.5

Minority interest 0.8 0.3 2.0 0.7 1.8

Total 41.8 34.6 111.9 109.5 138.4

Earnings per share for profit attributable

to the equity holders of the Company:

Basicearningspershare,EUR 0.66 0.55 1.77 1.72 2.17

Dilutedearningspershare,EUR 0.66 0.55 1.77 1.72 2.16

*Kalmarbusinessarearelatedcontainerspreaderinspectionandrepairprogramme


CondensedConsolidatedBalanceSheet

ASSETS

MEUR 30.9.2008 30.9.2007 31.12.2007

Non-current assets

Intangibleassets 776.7 754.8 751.2

Tangibleassets 272.9 254.9 253.7

Loansreceivableandotherinterest-bearingassets1) 6.6 2.2 5.5

Investments 8.7 4.1 7.2

Non-interest-bearingassets 93.7 64.5 76.4

Total non-current assets 1,158.7 1,080.5 1,094.0

Current assets

Inventories 885.8 660.1 657.4

Loansreceivableandotherinterest-bearingassets1) 0.3 0.4 0.4

Accountsreceivableandothernon-interest-bearingassets 737.0 574.2 651.9

Cashandcashequivalents1) 121.9 94.0 179.0

Total current assets 1,745.2 1,328.8 1,488.7

Total assets 2,903.9 2,409.2 2,582.6

EQUITY AND LIABILITIES

MEUR 30.9.2008 30.9.2007 31.12.2007

Equity

Shareholders’equity 874.1 871.6 890.6

Minority interest 7.8 5.2 6.1

Total equity 881.9 876.7 896.7

Non-current liabilities

Loans1) 438.5 408.3 433.3

Deferredtaxliabilities 33.3 35.8 38.5

Provisions 41.9 21.8 38.4

Pensionbenefitandothernon-interest-bearingliabilities 99.2 67.1 103.3

Total non-current liabilities 612.9 533.0 613.6

Current liabilities

Loans1) 79.2 53.0 55.1

Provisions 53.9 45.0 70.8

Accountspayableandothernon-interest-bearingliabilities 1,276.0 901.5 946.5

Total current liabilities 1,409.1 999.5 1072.4

Total equity and liabilities 2,903.9 2,409.2 2,582.6

1)Includedininterest-bearingnetdebt


ConsolidatedStatementofChangesinEquity

Attributabletotheequityholdersofthecompany

MEURShare

capital

Sharepremium account

Treasuryshares

Translationdifferences

Fairvalue

reservesRetainedearnings Total

Minority interest

Totalequity

Equityon31.12.2006 64.0 96.0 -23.9 -12.0 10.5 734.2 868.8 8.0 876.8

Gain/lossoncashflowhedgesbookedtoequity* 12.0 12.0 0.0 12.0

Gain/lossoncashflowhedgestransferredto IS -3.7 -3.7 -3.7

Translationdifferences -14.1 -14.1 -0.5 -14.5

Netincomerecogniseddirectlyinequity - - - -14.1 8.3 - -5.8 -0.5 -6.2

Netincomefortheperiod 108.8 108.8 0.7 109.5

Totalrecognisedincomeandexpensesfortheperiod - - - -14.1 8.3 108.8 103.0 0.2 103.3

Dividendspaid -63.2 -63.2 -0.4 -63.6

Sharessubscribedwithoptions 0.1 0.7 0.8 0.8

Acquisitionoftreasuryshares -39.2 -39.2 -39.2

Share-basedincentives,valueofreceivedservices* 1.3 1.3 1.3

Otherchanges - -2.6 -2.6

Equityon30.9.2007 64.1 96.7 -63.1 -26.1 18.9 781.0 871.6 5.2 876.7

Equityon31.12.2007 64.2 97.4 -70.0 -29.6 19.9 808.7 890.6 6.1 896.7

Gain/lossoncashflowhedgesbookedtoequity* -45.9 -45.9 -0.3 -46.2

Gain/lossoncashflowhedgestransferredto IS -1.5 -1.5 0.0 -1.4

Translationdifferences 8.9 8.9 0.3 9.2

Totalnetincomerecogniseddirectlyinequity - - - 8.9 -47.3 - -38.5 0.0 -38.4

Netincomefortheperiod 109.9 109.9 2.0 111.9

Totalrecognisedincomeandexpensesfortheperiod - - - 8.9 -47.3 109.9 71.4 2.0 73.4

Dividendspaid -65.3 -65.3 -0.6 -65.9

Sharessubscribedwithoptions 0.1 0.4 0.4 0.4


Share-basedincentives,valueofreceivedservices* 0.5 0.5 0.5

Otherchanges - 0.3 0.3

Equityon30.9.2008 64.3 97.7 -93.6 -20.7 -27.4 853.8 874.1 7.8 881.9

*Netoftax


MEUR 1-9/2008 1-9/2007 1-12/2007

Netincomefortheperiod 111.9 109.5 138.4

Depreciation 42.3 39.7 59.8

Otheradjustments 45.0 47.1 64.4

Changeinworkingcapital -41.0 -57.5 -27.4

Cash flow from operations 158.1 138.8 235.1

Cashflowfromfinancialitemsandtaxes -33.4 -56.5 -62.5

Cash flow from operating activities 124.8 82.3 172.6

Acquisitions -40.4 -169.3 -172.5

Cashflowfrominvestingactivities,otheritems -72.3 -65.7 -91.8

Cash flow from investing activities -112.7 -235.0 -264.3


Proceedsfromsharesubscriptions 0.4 0.8 1.5

Dividendspaid -65.9 -63.9 -63.8

Proceedsfromlong-termborrowings 0.7 226.9 274.5

Repaymentsoflong-termborrowings -2.2 -10.8 -29.5

Proceedsfromshort-termborrowings 38.0 20.1 40.8

Repaymentsofshort-termborrowings -24.6 -14.4 -31.5

Cash flow from financing activities -77.2 119.6 145.9

Change in cash -65.1 -33.1 54.2

Cash,cashequivalentsandbankoverdraftsatthebeginningofperiod 167.5 114.5 114.5

Effectofexchangeratechanges 2.5 -1.0 -1.1

Cash, cash equivalents and bank overdrafts at the end of period 104.9 80.4 167.5

Bankoverdraftsattheendofperiod 17.0 13.6 11.4

Cash and cash equivalents at the end of period 121.9 94.0 179.0

KeyFigures1-9/2008 1-9/2007 1-12/2007

Equity/share EUR 14.26 13.96 14.29

Interest-bearingnetdebt MEUR 388.7 364.6 303.6

Totalequity/totalassets % 35.3 40.2 38.3

Gearing % 44.1 41.6 33.9

Returnonequity % 16.8 16.7 15.6

Returnoncapitalemployed % 15.1 17.6 16.8

CondencedConsolidatedCashFlowStatement


Segment Reporting

Sales by geographical segment, MEUR 1-9/2008 1-9/2007 1-12/2007

EMEA 1,410 1,187 1,677

Americas 397 498 647

AsiaPacific 669 466 695

Total 2,476 2,151 3,018

Sales by geographical segment, % 1-9/2008 1-9/2007 1-12/2007

EMEA 56.9 % 55.2 % 55.6 %

Americas 16.0 % 23.2 % 21.4 %

AsiaPacific 27.0 % 21.7 % 23.0 %

Total 100.0 % 100.0 % 100.0 %

Sales, MEUR 1-9/2008 1-9/2007 1-12/2007

Hiab 691 687 931

Kalmar 1,103 979 1,343

MacGREGOR 687 487 748

Internalsales -6 -2 -4

Total 2,476 2,151 3,018

Operating profit, MEUR 1-9/2008 1-9/2007 1-12/2007

Hiab 45.7 54.6 73.8

Kalmar 77.5 78.6 105.5 *

MacGREGOR 52.9 37.1 59.4

Corporateadministrationandother -19.2 -13.5 -17.5

Operatingprofitfromoperations 156.9 156.8 221.1

None-recurringitems - - -18.0

Total 156.9 156.8 203.1

*Excludingtheone-offcostofEUR18.0millionrelatedtoacontainerspreaderinspectionandrepairprogramme

Operating profit, % 1-9/2008 1-9/2007 1-12/2007

Hiab 6.6 % 8.0 % 7.9 %

Kalmar 7.0 % 8.0 % 7.9 % *

MacGREGOR 7.7 % 7.6 % 7.9 %

Cargotec,operatingprofitfromoperations 6.3 % 7.3 % 7.3 % *

Cargotec 6.3 % 7.3 % 6.7 %

*Excludingtheone-offcostofEUR18.0millionrelatedtoacontainerspreaderinspectionandrepairprogramme


Orders received, MEUR 1-9/2008 1-9/2007 1-12/2007

Hiab 661 731 985

Kalmar 1,217 1,083 1,429

MacGREGOR 1,264 1,080 1,696

Internalordersreceived -7 -3 -4

Total 3,136 2,892 4,106

Order book, MEUR 30.9.2008 30.9.2007 31.12.2007

Hiab 229 255 260

Kalmar 778 684 660

MacGREGOR 2,480 1,614 1,946

Internalorderbook -1 0 -1

Total 3,486 2,552 2,865

Capital expenditure, MEUR 1-9/2008 1-9/2007 1-12/2007

Infixedassets(excludingacquisitions) 46.5 37.7 52.5

Inleasingagreements 0.6 0.3 0.7

Incustomerfinancing 26.0 23.5 37.5

Total 73.1 61.5 90.7

Number of employees at the end of period 30.9.2008 30.9.2007 31.12.2007

Hiab 4,508 4,405 4,418

Kalmar 4,777 4,431 4,459

MacGREGOR 2,548 2,162 2,223

Corporateadministration 167 83 87

Total 12,000 11,081 11,187

Average number of employees 1-9/2008 1-9/2007 1-12/2007

Hiab 4,540 3,981 4,091

Kalmar 4,639 4,159 4,233

MacGREGOR 2,410 1,773 1,880

Corporateadministration 126 68 72

Total 11,716 9,981 10,276


Notes

Taxes in income statement

MEUR 1-9/2008 1-9/2007 1-12/2007

Current year tax expense 55.0 42.3 56.2

Deferredtaxexpense -9.6 -0.7 -3.9

Taxexpenseforpreviousyears -15.4 -6.4 -6.3

Total 30.0 35.2 46.0

Commitments

MEUR 30.9.2008 30.9.2007 31.12.2007

Guarantees 0.2 2.4 2.2

Dealerfinancing 0.2 5.6 8.4

Endcustomerfinancing 6.7 5.9 7.5

Operatingleases 53.2 50.0 47.7

Offbalancesheetinvestmentcommitments 4.2 - 1.2

Othercontingentliabilities 3.8 5.3 3.7

Total 68.2 69.2 70.6

Fair values of derivative financial instruments

Positive

fairvalue

Negative

fairvalue

Netfair

value

Netfair

value

Netfair

value

MEUR 30.9.2008 30.9.2008 30.9.2008 30.9.2007 31.12.2007

FXforwardcontracts,cashflowhedges 28.0 84.9 -56.9 19.9 11.3

FXforwardcontracts,non-hedgeaccounted 24.7 9.8 14.9 5.5 20.7

Crosscurrencyandinterestrateswaps,cashflowhedges - 2.5 -2.5 -5.2 -4.9

Total 52.7 97.2 -44.5 20.2 27.1

Non-currentportion:

FXforwardcontracts,cashflowhedges 11.7 37.9 -26.2 4.8 -1.1

Crosscurrencyandinterestrateswaps,cashflowhedges - 2.5 -2.5 -5.2 -4.9

Non-current portion 11.7 40.4 -28.6 -0.4 -6.0

Current portion 41.0 56.9 -15.8 20.6 33.2

Nominal values of derivative financial instruments

MEUR 30.9.2008 30.9.2007 31.12.2007

FXforwardcontracts 3,430.6 2,306.4 2,610.0

Crosscurrencyandinterestrateswaps 225.7 225.7 225.7

Total 3,656.3 2,532.1 2,835.7


AcquisitionsDuringJanuary-September2008,CargotecmadesevenacquisitionsofwhichfourinHiabbusinessarea.

InFebruary,inordertostrengthenitsR&Dcapabilities,Cargotecacquired60percentofIdeaDesign&ConsultingS.r.l.Italy.Theaccountingof

thisbusinesscombinationalsoincludestheminorityshare,whichincludearedemptionobligation.TheacquisitionwasfinalisedinFebruary.

InFebruary,HiabmadeanagreementtoacquiretheUK-basedDelEquipment(UK)LimitedandtheUS-basedUltronLiftCorp.Thesecompanies

manufacturetailliftsinUKandUS.TheacquisitionswerefinalisedattheendofMarch.InFebruary,Hiabsignedalsoanagreementtoacquire

70percentoftheoperationsofAustralianO’Leary’sMaterialHandlingServicesPtyLtd.,theleadingsupplieroftailliftsinWesternAustralia.The

acquisitionwasclosedinApril.AttheendofMarch,HiabconcludedanagreementtoacquirethemajorityoftheoperationsofSouthAfrican

BowmanCranes(Pty)Limited.Thiscompanysupplies,installsandservicestruck-relatedloadhandlingequipment.Theacquisitionwasfinalised

inJune.InJune,HiabconcludedanagreementtoacquirethebusinessofZeproTailgate(1987)LimitedinNewZealand.Inadditiontotaillift

sales,thebusinesscomprisesinstallation,repairs,maintenanceandsparepartssales.TheacquisitionwasclosedinJuly.

InApril,MacGREGORsignedanagreementtoacquireUS-basedPlatformCraneService.Inc(PCS).TheacquisitionwasclosedinMay.

KalmaracquiredArgentineanEquiposyServiciosTerminalesyPuertosSRL(ESTP).Inadditiontonewequipmentdistributionthecompanyprovi-

desequipmentcommissioning,technicalandsparepartsupportaswellasequipmentrepairingandrefurbishinginSouthAmerica.

ManagementestimatesthattheconsolidatedsalesforJan1-Sep30,2008wouldhavebeenEUR2,494million,iftheacquisitionshadbeen

completedonJan1,2008.

ThetablebelowsummarizestheacquisitionscompletedinJanuary-September2008.Thebusinesscombinationswereaccountedaspreliminary

asthedeterminationoffairvaluestobeassignedtotheassets,liabilitiesandcontingentliabilitieswereyetnotfinalised.

Net fair values of identifiable Assets and liabilities

assets and liabilities of immediately before the

the acquired businesses business combination

MEUR

Otherintangibleassets 3.0 0.0

Property,plantandequipment 1.5 1.7

Inventories 11.2 11.1

Non-interest-bearingassets 11.2 11.2

Interest-bearingassetsandCashandcashequivalents 0.9 0.9

Interest-bearingliabilities -5.0 -5.0

Othernon-interest-bearingliabilities -16.1 -15.0

Acquired net assets 6.7 4.9

Transactionprice 37.7

Costsrelatedtoacquisitions 1.5

Goodwill 32.5

Transactionpricepaidincash 30.7

Costsrelatedtoacquisitions 1.5

Cashandcashequivalentsinacquiredbusinesses -0.9

Total cash outflow from acquisitions 31.3

ThebusinesscombinationsofHydramarineAS.InditalConstructionMachineryLtd.BayEquipmentRepairsIncandBaltiESwereaccountedas

preliminaryattheendof2007,asthedeterminationoffairvalueswasnotyetfinished.Theaccountingoftheseacquisitionshasbeenfinalised

duringthereviewperiod.Ithadnoimpactonthepreviousyear’sfigures.


AccountingPrinciples

TheinterimreporthasbeenpreparedaccordingtotheInternationalAccountingStandard34:InterimFinancialReporting.

Theaccountingpoliciesadoptedareconsistentwiththoseoftheannualfinancialstatementsof2007.Allfigurespresentedhavebeenrounded

andconsequentlythesumofindividualfiguresmaydeviatefromthepresentedsumfigure.

Adoption of new interpretation starting in January 1, 2008

StartingfromJanuary1,2008CargotechasadoptedthefollowingnewinterpretationbytheIASBpublishedin2007:

-IFRIC14,IAS19-TheLimitonaDefinedBenefitAsset,MinimumFundingRequirementsandtheirinteraction.

Theadoptionoftheinterpretationdoesnothaveamaterialeffectontheinterimfinancialstatements.

Calculation of key figures

Totalequityattributabletotheshareholdersoftheparentcompany

Equity/share = __________________________________________________________________

Shareissueadjustednumberofsharesattheendofperiod(excludingtreasury

shares)

Interest-bearingnetdebt = Interest-bearingdebt-interest-bearingassets

Totalequity

Totalequity/totalassets(%) = 100x __________________________________________________________________

Totalassets-advancesreceived

Interest-bearingdebt-interest-bearingassets

Gearing(%) = 100x __________________________________________________________________

Totalequity

Netincomeforperiod

Returnonequity(%) = 100x __________________________________________________________________

Totalequity(averageforperiod)

Incomebeforetaxes+interestandotherfinancingexpenses

Returnoncapitalemployed(%) = 100x __________________________________________________________________

Totalassets-non-interest-bearingdebt(averageforperiod)

Netincomefortheperiodattributabletotheshareholdersoftheparentcompany

Basicearnings/share = __________________________________________________________________

Shareissueadjustedweightedaveragenumberofsharesduringperiod(excludingtreasuryshares)

20 Cargotec’s Interim Report for January–September 2008Cargotec’s Interim Report for January–September 2008

QuarterlyFigures

Cargotec Q3/2008 Q2/2008 Q1/2008 Q4/2007 Q3/2007

Ordersreceived MEUR 967 1,013 1,155 1,214 1,028

Orderbook MEUR 3,486 3,360 3,287 2,865 2,552

Sales MEUR 848 901 727 868 713

Operatingprofit MEUR 49.6 63.1 44.2 64.3* 52.5

Operatingprofit % 5.8 7.0 6.1 7.4* 7.4

Basicearnings/share EUR 0.66 0.61 0.50 0.45 0.55

Hiab Q3/2008 Q2/2008 Q1/2008 Q4/2007 Q3/2007

Ordersreceived MEUR 194 238 228 254 223

Orderbook MEUR 229 238 253 260 255

Sales MEUR 209 253 230 244 202

Operatingprofit MEUR 9.5 18.5 17.7 19.1 13.7

Operatingprofit % 4.5 7.3 7.7 7.8 6.8

Kalmar Q3/2008 Q2/2008 Q1/2008 Q4/2007 Q3/2007


Orderbook MEUR 778 790 824 660 684

Sales MEUR 386 396 322 364 326

Operatingprofit MEUR 25.8 32.3 19.4 26.9* 27.8

Operatingprofit % 6.7 8.2 6.0 7.4* 8.5

MacGREGOR Q3/2008 Q2/2008 Q1/2008 Q4/2007 Q3/2007


Orderbook MEUR 2,480 2,334 2,211 1,946 1,614

Sales MEUR 256 254 177 261 187

Operatingprofit MEUR 19.1 21.9 11.9 22.3 15.0

Operatingprofit % 7.5 8.6 6.7 8.6 8.0

*Excludingtheone-offcostofEUR18.0millioninKalmarbusinessarearelatedtoacontainerspreaderinspectionand

repair programme

Cargotec’s Interim Report January–September 2008 Q3 · 2009. Furthermore, Somaport operating in...

Documents

Transcript of Cargotec’s Interim Report January–September 2008 Q3 · 2009. Furthermore, Somaport operating in...