CARGOTEC CORPORATION, INSIDE INFORMATION, 28 MAY 2024 AT 11:15 AM (EEST)
Inside information: MacGregor settles the dispute with a monopile installation
vessel customer and Cargotec starts the sales process of MacGregor
As announced on 30 April 2024 in conjunction with Cargotec's interim report
January-March 2024, MacGregor has had a dispute related to one and only monopile
installation vessel project. MacGregor and the customer have now settled this
dispute.
The settlement will have an approximately EUR 25 million negative impact on
MacGregor's second quarter 2024 operating profit. The costs will be reported as
items affecting comparability as the costs are related to a one of its kind
pilot project and the product is no longer in MacGregor's sales portfolio.
Booking of the settlement cost will not impact Cargotec's outlook on MacGregor's
comparable operating profit for 2024, which was published on 1 February 2024.
Cargotec estimates MacGregor's comparable operating profit in 2024 to improve
from 2023 (EUR 33 million).
MacGregor's core businesses, merchant and services, are performing well.
MacGregor's offshore business' performance, however, has been overall
unsatisfactory. While the traditional offshore solutions business has performed
well and it has been profitable, projects related to two new offshore wind
solutions have caused losses due to their pilot nature and technical challenges.
MacGregor has therefore now decided to stop offering the monopile installation
solution and it is no longer in MacGregor's sales portfolio. Another offshore
wind solution, containing advanced technologies for the servicing of offshore
wind turbines, is still a part of MacGregor offering. There are approximately
ten of these smaller loss-making offshore pilot projects to be finalised mainly
in 2024. MacGregor will not commit to any new pilot projects until all technical
challenges are solved.
These actions are the final stage of the restructuring programme to turn around
the offshore business. Offshore wind projects represent less than half of
MacGregor's offshore equipment related order book, which amounted to EUR 87
(Q1/23: 134) million at the end of the first quarter 2024.
Cargotec's Board of Directors decided on 14 November 2022 that MacGregor will
not be part of Cargotec's portfolio in the future. However, from a value
creation perspective, the timing for divesting the business was not ideal. Since
that, MacGregor's performance and market conditions have clearly improved, and
with the above-described dispute now being settled, Cargotec has decided to
proceed with the sale process of MacGregor.
"It is an important milestone for us to reach a settlement with the customer
related to the monopile installation vessel project. Our solution is technically
advanced but we were unable to reach agreement between the companies on the way
forward in the lengthy project. Having the dispute resolved means that we are in
an even stronger position than before to further build on our profitability
journey," says Leif Byström, President, MacGregor.
For more information:
Leif Byström, President, MacGregor, tel. +46 70 674 3022
Aki Vesikallio, Vice President, Investor Relations, Cargotec, tel.
+358 40 729 1670
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 has signed the United
Nations Global Compact Business Ambition for 1.5C. The company's sales in 2023
totalled approximately EUR 4.6 billion and it employs around 11,300 people.
www.cargotec.com
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