Cargotec’s financial results for 2023 indicate a remarkable year marked by significant increases in both sales and profitability.
In the fourth quarter, orders received showed improvement compared to the third quarter, reaching a total of US$1.6 million. The annual sales witnessed a 12% increase, reaching US$4.9 million while the comparable operating profit surged by an impressive 62% to US$553 million.
Notably, the company achieved a record-high operative cash flow, totalling US$586 million in 2023. The ongoing MacGregor turnaround is progressing according to the announced plan. It is important to note that all the figures presented in this financial statements review are based on Cargotec Corporation’s audited financial statements for the year 2023.
Summarizing January to December 2023, Cargotec achieved record-breaking figures in sales, profitability, and cash flow. Despite an 18% decrease in orders, totalling US$4.30 million, the order book at the period’s end amounted to US$3 million. Sales demonstrated a 12% increase, reaching US$4.9 million, with service sales rising by 9% to US$1.5 million, constituting 30% of consolidated sales.
The Eco portfolio sales surged by 18% to US$1.6 million, representing 33% of consolidated sales. The operating profit reached US$522 million, equivalent to 10.6% of sales, including items affecting comparability worth minus US$32 million. The comparable operating profit saw a substantial 62% increase, totalling US$553 million, constituting 11.2% of sales.
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. 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 that Hiab’s comparable operating profit margin will exceed 12% in 2024, anticipates Kalmar’s comparable operating profit margin to surpass 11% in the same year and expects MacGregor’s comparable operating profit in 2024 to show improvement compared to the 2023 figure of US$35.5 million.
Reporting segments’ key figures
Orders received
| Million Euros | Q4/23 | Q4/22 | Change | 2023 | 2022 | Change |
| Kalmar | 405 | 544 | -26% | 1,705 | 2,081 | -18% |
| Hiab | 401 | 377 | 6% | 1,466 | 1,807 | -19% |
| MacGregor | 209 | 269 | -22% | 816 | 976 | -16% |
| Internal orders | 0 | 0 | 0 | 0 | ||
| Total | 1,015 | 1,190 | -15% | 3,987 | 4,862 | -18% |
Order book
| Million Euros | 31 Dec 2023 | 31 Dec 2022 | Change |
| Kalmar | 1,024 | 1,428 | -28% |
| Hiab | 799 | 1,185 | -33% |
| MacGregor | 988 | 927 | 7% |
| Internal order book | 1 | 1 | |
| Total | 2,812 | 3,541 | -21% |
Sales
| Million Euros | Q4/23 | Q4/22 | Change | 2023 | 2022 | Change |
| Kalmar | 509 | 618 | -18% | 2,050 | 1,943 | 5% |
| Hiab | 450 | 456 | -1% | 1,787 | 1,578 | 13% |
| MacGregor | 234 | 165 | 42% | 733 | 569 | 29% |
| Internal sales | 0 | 0 | 0 | -1 | ||
| Total | 1,193 | 1,239 | -4% | 4,569 | 4,089 | 12 % |
Operating profit
| Million Euros | Q4/23 | Q4/22 | Change | 2023 | 2022 | Change |
| Kalmar | 58.9 | 67.0 | -12% | 264.2 | 142.1 | 86% |
| Hiab | 47.8 | 61.3 | -22% | 252.1 | 217.1 | 16% |
| MacGregor | 6.7 | -143.6 | > 100% | 31.8 | -190.2 | > 100% |
| Corporate administration and support functions | -24.3 | -13.5 | -80% | -64.4 | -62.9 | -2% |
| Total | 89.0 | -28.8 | > 100% | 483.8 | 106.1 | > 100% |
Cargotec implemented a modification to the definition of the alternative performance measure, comparable operating profit, effective from 1 January 2023. The restated comparable operating profit now incorporates the impacts of the purchase price allocation, totalling approximately US$17.2 million in 2022. Specifically, approximately US$1.08 million pertained to Kalmar, US$3.23 million to Hiab, and US$12.9 million to MacGregor. Further details about this adjustment can be found in the stock exchange release issued on 4 April 2023.
In addition, Cargotec has adjusted its eco portfolio sales for the second quarter of 2023. The initially reported amount of US$390 million has been revised to US$428 million, constituting 33% of Cargotec’s consolidated sales during that quarter.
