CARGOTEC CORPORATION, Q3 2017 INTERIM REPORT, 27 OCTOBER 2017 AT 9.00 AM EEST

Cargotec's January-September 2017 interim report: Orders received increased in Hiab, MacGregor and services

• Good development in Kalmar's services

• Strong growth in Hiab's orders received

• MacGregor's orders received increased

• Strong cash flow

July-September 2017 in brief: Strong cash flow from operations

• Orders received increased by 2 percent and totalled EUR 749 (733) million.

• Order book amounted to EUR 1,698 (31 Dec 2016: 1,783) million at the end of the period.

• Sales decreased by 13 percent and totalled EUR 740 (854) million.

• Service sales totalled EUR 215 (210) million.

• Software sales decreased by 10 percent and totalled EUR 31 (35) million.

• Service and software sales represented 33 (29) percent of consolidated sales.

• Operating profit excluding restructuring costs decreased 13 percent and amounted to EUR 57.4 (65.9) million, representing 7.8 (7.7) percent of sales.

• Operating profit was EUR 52.7 (56.2) million, representing 7.1 (6.6) percent of sales.

• Cash flow from operations before financial items and taxes totalled EUR 88.5 (74.4) million.

• Net income for the period amounted to EUR 32.6 (33.5) million.

• Earnings per share was EUR 0.51 (0.52).

January-September 2017 in brief: Around one third of sales from service and software

• Orders received decreased by 2 percent and totalled EUR 2,406 (2,461) million.

• Sales decreased by 8 percent and totalled EUR 2,378 (2,581) million.

• Service sales totalled EUR 645 (641) million.

• Software sales increased by 14 percent and totalled EUR 111 (97) million.

• Service and software sales represented 32 (29) percent of consolidated sales.

• Operating profit excluding restructuring costs totalled EUR 188.6 (189.3) million, representing 7.9 (7.3) percent of sales.

• Operating profit was EUR 169.4 (176.4) million, representing 7.1 (6.8) percent of sales.

• Cash flow from operations before financial items and taxes totalled EUR 141.1 (221.0) million.

• Net income for the period amounted to EUR 106.6 (113.0) million.

• Earnings per share was EUR 1.66 (1.75).

Outlook for 2017 unchanged

Cargotec reiterates its outlook published on 8 February 2017 and expects its operating profit excluding restructuring costs for 2017 to improve from 2016 (EUR 250.2 million).

Cargotec's key figures

*Software sales include Navis business unit and automation software
**Excluding restructuring costs
***Last four quarters' EBITDA

Cargotec's CEO Mika Vehviläinen: Good progress in many areas, sales were a disappointment

Orders received increased in Hiab, MacGregor and services during the third quarter of 2017. The services growth is especially important for us and together with software business it already accounts for one third of our total sales. Hiab's orders received grew strongly in Europe. For the first time in three years MacGregor's orders received increased compared to previous year, and there are positive signals in the merchant ship markets.

Our sales in the third quarter were disappointing compared to our expectations, affecting our operating profit negatively. The sales decline came from low MacGregor delivery volumes, timing of the deliveries in Kalmar projects, as well as supply chain challenges in Hiab and Kalmar's mobile equipment.

In Kalmar, the orders received did not reach our expectations especially in the project business. However, the good development of container throughput continued in the third quarter, and the service sales, which are crucial for our strategy, grew eight percent in Kalmar. Furthermore, we took important steps in the commercialisation of our digital collaboration platform XVELA.

In Hiab, we were able to complete an interesting acquisition in developing markets. Argos is one of the leading manufacturers of loader cranes in Brazil, and with the acquisition we will expand our operations in the market as well. The construction activity is estimated to remain on a good level in our main markets, supporting Hiab's prospects also going forward.

Despite the decline in sales, MacGregor's operating profit in the third quarter remained at last year's level due to cost savings. The share of services accounted for as much as 40 percent of MacGregor's sales already.

Cash flow from operating activities was strong during the third quarter. With a good cash flow we are able to invest in research and development, growth, as well as mergers and acquisitions.

Reporting segments' key figures

Orders received

Order book

Sales

Operating profit

Operating profit excluding restructuring costs

Press conference for analysts and media

A press conference for analysts and media, combined with a live international telephone conference, will be arranged on the publishing day at 11.00 a.m. EEST at Cargotec's head office, Porkkalankatu 5, Helsinki. The event will be held in English. The report will be presented by CEO Mika Vehviläinen and Executive Vice President, CFO Mikko Puolakka. The presentation material will be available at www.cargotec.com by latest 10.30 a.m. EEST.

The telephone conference, during which questions may be presented, can be accessed using the following numbers with access code Cargotec/1627222:

FI: +358 (0)9 7479 0404
SE: +46 (0)8 5065 3942
UK: +44 (0)330 336 9411
US: +1 719-457-1036

The event can also be viewed as a live webcast at www.cargotec.com. An on-demand version of the conference will be published at Cargotec's website later during the day.

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 2016 totalled approximately EUR 3.5 billion and it employs over 11,000 people. www.cargotec.com