Cargotec's restated 2017 financial information and comparison figure for 2018 outlook in accordance with new accounting principles
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 28 MARCH 2018 AT 3.00 PM EEST
Cargotec's restated 2017 financial information and comparison figure for 2018 outlook in accordance with new accounting principles
Cargotec applies the new IFRS 15 and IFRS 9 accounting standards as well as the amendments to the IFRS 2 standard starting from 1 January 2018. Cargotec discloses the financial impacts of the transitional adjustments related to the adoption of IFRS 15 and IFRS 9 and the amended IFRS 2, as well as the restated figures for 2017 due to the retrospective adoption of IFRS 15. Cargotec has also aligned the definitions of the equipment, service and software businesses from the beginning of 2018 and discloses the restated comparison period figures of 2017 for the reporting segments.
The adoption of IFRS 15 decreased sales in 2017 by EUR 30.3 million, of which Kalmar's share was EUR 25.2 million, Hiab's EUR 0.1 million and MacGregor's EUR 5.0 million. The 2017 operating profit, excluding restructuring costs, decreased by EUR 4.6 million, of which Kalmar's share was EUR 3.6 million, Hiab's EUR 0.1 million and MacGregor's EUR 1.0 million.
Cargotec confirms the 2018 outlook published on 8 February 2018: Cargotec's operating profit excluding restructuring costs for 2018 is expected to improve from 2017 (EUR 258.6 million, IFRS 15 restated). The previous 2017 comparison figure for operating profit excluding restructuring costs was EUR 263.2 million.
The adoption of the new accounting principles resulted in an increase of EUR 3.5 million in Cargotec's equity in the opening balance 2018, including the following adjustments:
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IFRS 15, Revenue from contracts with customers, was adopted retrospectively with the allowed transitional reliefs. The adoption of IFRS 15 resulted in changes in the timing of revenue recognition related to certain products. The retrospective adoption of these changes resulted in an increase of EUR 1.3 million in Cargotec's equity in the opening balance of 2017, and a reduction of EUR 3.7 million in the net income for the year 2017.
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IFRS 9, Financial instruments, was adopted prospectively with the allowed transitional reliefs. The adoption of IFRS 9 resulted in an increase in the credit loss provision regarding the less than 90 days overdue receivables related to which Cargotec previously recognized no generic credit loss provision. In addition, certain loan receivables were impaired on the adoption of IFRS 9. These transitional adjustments resulted in a reduction of EUR 1.6 million in Cargotec's equity in the opening balance of 2018.
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Amendments to IFRS 2 regarding the classification and measurement of share-based payment transactions were adopted prospectively. As a result of the amendments, the share-based payments that are settled net in shares after withholding taxes are accounted for in full as equity-settled arrangements despite the fact that Cargotec pays in cash the taxes related to the rewards on behalf of the participants. The adoption of IFRS 2 amendments resulted in an increase of EUR 7.5 million in Cargotec's equity in the opening balance of 2018.
Additional information regarding the transitional adjustments is disclosed in Cargotec's Financial review 2017 under the section Accounting principles for the consolidated financial statements.
Due to the aligned definitions of the equipment, service and software businesses, EUR 32.8 million was restated from equipment sales into service sales in 2017, of which Hiab's share was EUR 16.2 million and MacGregor's EUR 16.6 million.
The first interim report of 2018 to be published on 24 April will be prepared in accordance with the new accounting principles.
The restated financial information is unaudited.
Quarterly key figures
| Cargotec | Q1/2017 | Q2/2017 | Q3/2017 | Q4/2017 | 2017 | |
| Orders received | MEUR | 857 | 800 | 749 | 784 | 3,190 |
| Service orders received | MEUR | 235 | 214 | 225 | 221 | 896 |
| Order book | MEUR | 1,821 | 1,717 | 1,699 | 1,566 | 1,566 |
| Sales | MEUR | 792 | 836 | 736 | 886 | 3,250 |
| Service sales | MEUR | 224 | 223 | 223 | 238 | 907 |
| Software sales | MEUR | 35 | 42 | 30 | 45 | 152 |
| Service and software sales, % of sales | % | 33% | 32% | 34% | 32% | 33% |
| Operating profit | MEUR | 56.0 | 58.9 | 52.5 | 54.7 | 222.1 |
| Operating profit | % | 7.1% | 7.0% | 7.1% | 6.2% | 6.8% |
| Operating profit* | MEUR | 58.9 | 70.6 | 57.2 | 71.9 | 258.6 |
| Operating profit* | % | 7.4% | 8.4% | 7.8% | 8.1% | 8.0% |
| Basic earnings / share | EUR | 0.56 | 0.56 | 0.50 | 0.42 | 2.05 |
| Kalmar | Q1/2017 | Q2/2017 | Q3/2017 | Q4/2017 | 2017 | |
| Orders received | MEUR | 448 | 386 | 351 | 369 | 1,555 |
| Order book | MEUR | 973 | 929 | 895 | 786 | 786 |
| Sales | MEUR | 364 | 397 | 371 | 465 | 1,598 |
| Service sales | MEUR | 107 | 106 | 111 | 121 | 445 |
| Software sales | MEUR | 35 | 42 | 30 | 45 | 153 |
| Operating profit* | MEUR | 27.9 | 32.3 | 30.0 | 42.8 | 133.1 |
| Operating profit* | % | 7.7% | 8.1% | 8.1% | 9.2% | 8.3% |
| Hiab | Q1/2017 | Q2/2017 | Q3/2017 | Q4/2017 | 2017 | |
| Orders received | MEUR | 288 | 279 | 260 | 289 | 1,116 |
| Order book | MEUR | 302 | 290 | 294 | 300 | 300 |
| Sales | MEUR | 270 | 282 | 252 | 280 | 1,084 |
| Service sales | MEUR | 65 | 65 | 64 | 65 | 258 |
| Operating profit* | MEUR | 39.5 | 44.0 | 33.7 | 39.9 | 157.2 |
| Operating profit* | % | 14.6% | 15.6% | 13.4% | 14.3% | 14.5% |
| MacGregor | Q1/2017 | Q2/2017 | Q3/2017 | Q4/2017 | 2017 | |
| Orders received | MEUR | 121 | 136 | 139 | 126 | 521 |
| Order book | MEUR | 547 | 501 | 511 | 481 | 481 |
| Sales | MEUR | 158 | 157 | 114 | 141 | 571 |
| Service sales | MEUR | 52 | 52 | 48 | 53 | 205 |
| Operating profit* | MEUR | 2.2 | 4.3 | 2.9 | 1.2 | 10.6 |
| Operating profit* | % | 1.4% | 2.7% | 2.5% | 0.8% | 1.9% |
| *Operating profit excluding restructuring costs | ||||||
For further information, please contact:
Mikko Puolakka, Executive Vice President and CFO, tel. +358 20 777 4105
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084
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's sales in 2017 totalled approximately EUR 3.2 billion and it employs over 11,000 people. www.cargotec.com