Cargotec at 5-yr high after profit beat, separation plans

Hiab Oyj

27/04/2023 09:38

** Shares in Finnish engineering group Cargotec  CGCBV.HE 
surge 14% after it reported better-than-expected Q1 earnings and
said it plans to separate its units Hiab and Kalmar
    ** The company's operating profit more than doubled in the
quarter to 104.0 mln euros ($114.90 million), beating Vara;s
estimate of 76.5 mln euros
    ** "Driven by our core businesses Kalmar and Hiab, we
reached a record-high comparable operating profit of 112 mln
euros," the company said
    ** Kalmar and Hiab are two divisions Cargotec intends to
separate, with Kalmar becoming a new listed company by a partial
demerger 
    ** "The good margins especially in the Kalmar unit in Q1
should drive consensus estimates up and the plan to split the
company is good news in my view," Danske Bank analyst Panu
Laitinmäki says
    ** Adds, the separate companies will be more focused and
simpler for investors to follow as Cargotec has so far been bit
of a conglomerate 
    ** The planning of the potential partial demerger intended
to be carried out during 2023
    ** Stock on track for best day in six months; reaches its
highest since October 2017 


($1 = 0.9051 euros)

 (Reporting by Izabela Niemiec)
 ((Izabela.niemiec@thomsonreuters.com))