26.04.2012

Hiab up 12%

Hiab, the load handling division of Cargotec has reported a strong increase in order intake and a 12% rise in revenues for the first quarter of 2012.

Total sales were €202 million, 12 percent higher than this time last year, while order intake jumped 22 percent to €246 million, taking the order book up 21 percent to €229 million. The main driver for this, in terms of product, was loader crane sales, with a strong pick up in the USA.

Hiab operating income doubled to €7.6 million, due, says the company, to the higher volumes and greater efficiencies, coupled with supply chain improvements.

Overall Cargotec fared less well, with revenues improving just four percent to €793 million, as order intake slipped 10 percent to €737 million, although the effect on the order book was just one percent, reducing it to a still very healthy €2.3 billion. Pre-tax profits also suffered, slipping around 25 percent to €34.7 million.

Geographically the America’s, Cargotec’s weakest region, was the fastest growing in terms of revenues jumping 34 percent, while Europe edged up one percent and Asia fell six percent.

Chief executive Mikael Mäkinen said: “During the first quarter, market activity was healthy, even though orders lagged behind those of the comparison period. Although the low level of new ship orders was evident in Marine's order intake, in accordance with our expectations the focus of orders is shifting from merchant ships to offshore.”

“In Load Handling (Hiab), orders for the first quarter grew by 22 percent. Due to stronger order books and successful deliveries by Terminals and Load Handling, our sales developed favourably. However, profitability fell short of our target. Although Terminals (Kalmar) did not progress as planned, we are confident of an improvement for the full year. In March, we decided to initiate the evaluation of a listing of Marine on the Singapore Exchange, in order to secure further growth. The evaluation work has proceeded according to plan. We will report on this as work progresses, by the end of the third quarter.”

Vertikal Comment

Cargotec has reorganised its divisions again this year and really now needs to settle down and allow its separate businesses to focus externally on its customers and markets.

The group has good products and strong brands but has suffered in the past from too large a corporate management group. This was due to change this year as it reverted to three strong and more independent operations, this should start to show benefits as the year progresses.

As long as there is not another change in strategy in the meantime.