29.04.2014

Hiab profits jump

Cargotec has published its first quarter results which show a strong profits recovery at Hiab and Kalmar.

Hiab sales for the quarter were up eight percent to €208 million, although order intake only improved one percent to €218 million, leaving the backlog one percent lower at €211 million. Operating profits jumped from just €2 million last year to €13.4 million this year -thanks to lower restructuring costs.

Kalmar saw revenues edge up just one percent to €327 million, with order intake falling 10 percent to €330 million. In comparison, operating profits jumped 53 percent to €10.7 millon.

MacGregor marine crane division, posted a surprising 32 percent growth in revenues, to €217 million, on the back of a 50 percent jump in order intake to €315 million. However restructuring and other costs slashed operating profits from €12 million last year to €7.7 million this year.

Cargotec as a whole improved its revenues 11 percent to €751 million, while pre-tax profits jumped almost 70 percent to €18.3 million, but net debt at the end of the period was €824 million, compared to €506 million at this time last year.

Chief executive Mika Vehviläinen said: “During the first quarter, market activity was good and especially in MacGregor order intake continued healthy. We are delighted to note that the €40 million profit improvement programme currently being implemented in both Kalmar and Hiab is beginning to yield positive results. Hiab's first-quarter profitability was at its highest in several years. Kalmar's performance also continued to improve, but we are disappointed with the cost overruns in one ship-to-shore crane project sold in 2012.”

“MacGregor's operating profit was weak due to low delivery volumes for merchant ships, the relative growth of the offshore business, and acquisition costs. However, we believe that MacGregor's profitability will improve in the forthcoming quarters. We will continue our determined efforts to improve our profitability and I expect positive results this year.”