15.10.2012

Cargotec issues profit warning

Cargotec has issued a statement on its third quarter results and reduced its profit forecasts due to cost overruns in its Kalmar Terminals business.

The operating profit margin for 2012 is now expected to be around five percent on increased revenues, previous guidance suggested an operating profit margin of approximately six percent.

According to preliminary results, Cargotec's third quarter revenues were €794 million with an operating margin of 4.9 percent. Order intake in the quarter was €719 million.

A statement from the company said: “We have reduced the full-year 2012 operating profit margin guidance given in July. Due to cost overruns - the profitability of large projects in the Terminals business area fell below expectations in the third quarter - and therefore also the fourth quarter performance is expected to remain below previous expectations. The guidance is also affected by slippages of deliveries over the year-end into 2013 in the Marine business area.”

The company has also announced that it is planning to centralise its reachstacker and empty container handler production in Europe to its facility in Stargard Szczecinski, Poland.

Reachstakers and empty container handlers are currently assembled at the Lidhult plant in Sweden, which will now focus on forklift truck production. Cargotec will begin negotiations on personnel reductions tomorrow. Initial estimates suggest a reduction of approximately 130 employees in Lidhult.