23.10.2014

Solid improvement for Hiab

Hiab has reported a three percent rise in its nine month revenues, with a strong rise in profits – while sister company Kalmar has started to recover.

Hiab revenues for the first nine months were €629 million, three percent up on this time last year, while order intake improved eight percent to €676 million. Operating income for the period was €30.6 million, almost two and half times last year’s €13.5 percent.

Looking at the third quarter, revenues were €200 million, up just one percent, however operating profits more than doubled from €5.6 to €12 million. The order book at the end of the quarter was €245 million, 23 percent higher than a year ago and 21 percent up since the start of the year.

Reachstacker and container terminal equipment manufacturer Kalmar saw nine month revenues fall four percent to €1.04 billion, with order intake up three percent, although the order book ended up 15 percent lower than last year at €883 million. Operating profits slumped from €36.4 million last year to €21.7 million so far this year.

In the third quarter revenues jumped nine percent to €385 million, while operating income doubled from €14.9 to €30.7 million in the last three months,

The two companies and MacGregor are part of Cargotec which saw nine month revenues improve six percent to €2.4 billion, while pre-tax profits dropped to €44.7 million from €67.7 million last year.

Chief executive Mika Vehviläinen said: “Our profit improvement programme progressed as planned in Hiab and Kalmar during the third quarter, and its effects are already being seen in both businesses' operating profit figures. We are continuing our determined efforts to complete this programme. Hiab and Kalmar's market environment remained unchanged, however, uncertainty has increased. Third-quarter orders for both business areas were in line with the comparison period. Uncertainty increased in MacGregor's market during the autumn. In order to safeguard improved profitability in such a market, we have decided to launch measures in several areas, such as sales, services and procurement, and have established a more customer-oriented organisation. The development of this business area will require the same determined efforts that are already bearing fruit at Hiab and Kalmar.”

Vertikal Comment

Hiab and Kalmar have undergone a series of changes and restructuring in recent years, and while changes are still underway, the two businesses do appear to be settling down and if left to build on the changes are likely to see an ongoing improvement as they go into 2015. Hiab in particular seems to be making some solid progress as it restructures and improves its sales, distribution and marketing, along with a solid new product plan.