Cargotec has reported outstanding financial results for the year 2023, reflecting significant growth in both sales and profitability. The fourth quarter showcased improvement in orders received compared to the previous quarter, totaling US$1.6 million. Annual sales experienced an impressive 12% increase, reaching US$4.9 million, while comparable operating profit surged by an impressive 62% to US$553 million, says an article published on a container news website.
Summary
- Cargotec achieved a record-high operative cash flow, totaling US$586 million in 2023.
- Despite an 18% decrease in orders totaling US$4.30 million, the order book at the end of the period amounted to US$3 million.
- The profit for the period amounted to US$376 million, translating to basic earnings per share of US$5.8, a significant improvement from the previous year’s US$0.4.
- Cargotec projects positive future performance, anticipating Hiab’s comparable operating profit margin to exceed 12% in 2024, Kalmar’s comparable operating profit margin to surpass 11% in the same year, and MacGregor’s comparable operating profit in 2024 to show improvement compared to the 2023 figure of US$35.5 million.
Fourth Quarter Highlights
Orders Received: In the fourth quarter, orders received showed improvement, reaching a total of US$1.6 million.
Annual Sales: Annual sales witnessed a substantial 12% increase, reaching US$4.9 million.
Operating Profit: The comparable operating profit saw an impressive surge of 62%, totaling US$553 million.
Operative Cash Flow: Cargotec achieved a record-high operative cash flow, totaling US$586 million in 2023.
MacGregor Turnaround: The ongoing MacGregor turnaround is progressing according to the announced plan.
Full-Year Achievements (January To December 2023)
Orders: Despite an 18% decrease in orders totaling US$4.30 million, the order book at the end of the period amounted to US$3 million.
Sales Increase: Sales demonstrated a noteworthy 12% increase, reaching US$4.9 million, with service sales rising by 9% to US$1.5 million, constituting 30% of consolidated sales.
Eco Portfolio Sales: Eco portfolio sales surged by 18% to US$1.6 million, representing 33% of consolidated sales.
Operating Profit: The operating profit reached US$522 million, equivalent to 10.6% of sales, with a comparable operating profit seeing a substantial 62% increase, totaling US$553 million, constituting 11.2% of sales.
Cash Flow: The cash flow from operations before finance items and taxes reached a record high at US$586 million, compared to the previous year’s US$249 million.
Profit for the Period: The profit for the period amounted to US$376 million, translating to basic earnings per share of US$5.8, a significant improvement from the previous year’s US$0.4.
Future Projections
Cargotec projects positive future performance, anticipating Hiab’s comparable operating profit margin to exceed 12% in 2024, Kalmar’s comparable operating profit margin to surpass 11% in the same year, and MacGregor’s comparable operating profit in 2024 to show improvement compared to the 2023 figure of US$35.5 million.
Financial Adjustments
Cargotec implemented modifications to the definition of the alternative performance measure, comparable operating profit, effective from January 1, 2023. The restated comparable operating profit now incorporates the impacts of the purchase price allocation, totaling approximately US$17.2 million in 2022.
Additionally, adjustments to eco portfolio sales for the second quarter of 2023 were made, revising the initially reported amount from US$390 million to US$428 million, constituting 33% of Cargotec’s consolidated sales during that quarter. Further details about these adjustments are available in the stock exchange release issued on April 4, 2023.
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Source: container news
