Cargotec Climbs as Marine Unit Bounces Back: Helsinki Mover
Cargotec Oyj, a Finnish supplier of cargo-handling equipment, gained the most in a week after its maritime and offshore unit reported fourth-quarter orders that beat analysts’ estimates.
Shares of Cargotec increased 3.2 percent to 21.56 euros at 10:56 a.m. in Helsinki trading, the biggest intraday gain since Feb. 4. Volume exceeded 180,000 shares, more than the daily three-month average.
Cargotec is pushing ahead with a planned spinoff of its MacGregor marine-equipment unit, announcing today it will be domiciled in Singapore. More than 70 percent of the unit’s sales come from the Asia-Pacific region. MacGregor booked 215 million euros in orders in the fourth quarter, outpacing the 143 million euros of the prior period, it said today. The unit’s earnings before taxes reached 14.7 percent of sales in the quarter, compared with a full-year margin of 12.9 percent.
It was “especially important” for the marine unit to “snap the bleak trend of recent quarters,” Juha Kinnunen and Sauli Saumala, analysts at Helsinki-based Inderes Oy, said in a note. “Both profit and orders exceeded our expectations clearly. This is very important keeping in mind the ongoing listing process.”
The company, which has appointed Mika Vehvilaeinen from Finnair Oyj as chief executive officer starting next month, said it expects 2013 sales to decline “slightly” while operating profit excluding restructuring costs is expected to remain at last year’s level.
“We expected also operating profit excluding one-time costs to decline, so in this respect the guidance was positive,” Kinnunen and Saumala said.
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