10.02.2015

Hiab bounces back to profit

Hiab loader cranes has reported a solid return to profitability on flat full year revenues, while sister company Kalmar posted a modest rise in revenues with lower profits.

The two companies are part of Cargotec, which also owns MacGregor marine, the group as a whole posted a positive year in terms of both profits and revenues.

For the 12 months Hiab achieved revenues of €840 million, virtually the same as last year, while order intake for the year improved five percent to €909 million. Operating profit for the period was €42.5 million compared to just €400,000 in 2013. The order book at the end of the year was €264 million, 30 percent up on the year.

Looking at the fourth quarter revenues slipped eight percent to €211 million, while order intake fell four percent, However operating profits in the quarter jumped from a loss of €5.7 million in 2013 to a profit this year of €5.6 million. Thanks to the absence of restructuring charges and improved efficiencies.

For the full year Kalmar achieved revenues of €1.49 billion four percent lower than the prior year, while operating profits slipped by a similar level to €55.3 million. The division’s order book at the end of the year was slightly higher at €805 million.

MacGregor reported a solid year with revenues up 30 percent to €1.03 billion, however operating profits fell around 14 percent to €51.7 million.
Cargotec as a whole reported revenues of €3.36 billion, up six percent on 2013, while pre-tax profits improved almost 25 percent to €98.2 million.

Cargotec chief executive Mika Vehviläinen said: “Our results for 2014 are a clear indication that our profit improvement programmes have progressed well and that we are implementing the issues defined in our strategy, one step at a time. Both fourth-quarter orders and sales grew on the previous quarter. Operating profit improved across the business areas towards the year-end with the fourth quarter clearly outperforming the previous quarters. I am also delighted with the improvement in cash flow”.

“Even though the overall financial results for 2014 were below our expectations, I am more convinced that we can meet our future targets. Our market position is strengthened by several successful new product launches. In North America in particular, market activity is expected to continue positive both for Hiab and Kalmar. We face challenging markets in MacGregor, but there is still much room for improvement in our own operations. In 2015, we will continue the profit improvement programmes in Kalmar and Hiab and the development programmes launched in MacGregor in order to improve the business area's profitability over the cycle”

Vertikal Comment

This is a more positive result for Hiab than the numbers alone might suggest, the company went through what seemed like constant corporate tinkering for many years and while some of that has continued it seems to finally emerging from it all and the fact that it has reported a decent improvement in profitability, even in what was a tough fourth quarter is perhaps a sign that it is ready to start giving Palfinger a 'run for its money'.

Kalmar looks as though it is beginning to overcome its operational problems and MacGregor is likely to see profitability begin to catch up with its revenues growth. All in all Cargotec could achieve a great deal in 2015.