18.06.2014

More cost overruns at Kalmar

Kalmar owner Cargotec has increased its estimates for cost overruns at its Kalmar reach stacker and port handling division.

The company previously stated that the majority of sales of the large projects sold in 2011-2012 had been recognised as revenue and that significant cost overruns related to one ship-to-shore crane project sold in 2012 were found and accounted for.

However Cargotec will now take a further €40 million hit - due to project cost overruns - in Kalmar’s second quarter operating profit, in addition to the €9 million booked in the first quarter. This is estimated to cover the costs for finalising project deliveries.

Kalmar president Olli Isotalo will take over the operative responsibility of the Automation & Projects division responsible for project sales and delivery in addition to his current responsibilities, following the replacement of those involved with the ship-to-shore crane project. Cooperation negotiations have been started to reorganise the ship-to-shore crane business.

In spite of the further cost overruns Cargotec's outlook for 2014 is unchanged