29.04.2015

Another solid quarter for Hiab

Hiab loader cranes – part of Cargotec – has reported a two percent rise in revenues with profit up almost 44 percent.

Total revenues were €212 million just two percent up on the same quarter last year, while operating profit – without restructuring costs improved almost 44 percent to €19.2 million. Order intake improved substantially on a year ago rising 17.5 percent to €256 million taking the order book to the highest levels in some time at €322 million, 53 percent higher than this time last year.

Sister company Kalmar - the port handing specialist - has also ‘turned the corner’ with revenues up 21 percent to €395 million, with operating profits of €29.4 million two and half times higher than in the first quarter of 2014. Order intake jumped 38 percent taking the order book up to €893 million.

The MacGregor ship crane and hatch division saw similar gains all of which took Cargotec revenues to €889 million more than 18 percent up on the year, pre-tax profits came in at €47.5 million more than two and half times higher than last year’s €18.3 million.

Cargotec chief executive Mika Vehviläinen said: “2015 began positively for Cargotec. We saw year-on-year improvement in all of our key figures. I am extremely pleased with the way our profit improvement measures are progressing with regard to Kalmar and Hiab. Our new product launches together with the improving market situation are demonstrating as growth in our order book and sales. Our profitability is improving step by step towards our eight percent EBIT margin target set for 2016”.

“We are also satisfied with the nine percent growth seen in orders received in the first quarter. During the first quarter, the market situation related to Kalmar and Hiab developed favourably, while that of MacGregor weakened. We do not expect to see rapid improvement in MacGregor's market situation, which is why we have added a savings programme to our current programmes in order to safeguard the profitability of this business area”.

Vertikal Comment

This is best set of quarterly numbers from Hiab in some time and do suggest that recent stability and continuity are beginning to pay off. If Cargotec can leave the operating businesses to get on with doing what they do best, the next few year’s look bright.

Hiab has some way to go to make up the ground lost to Palfinger during the recession when the company seemed to be constantly restructuring and making major strategy reversals as it focused on quarterly financial reporting, rather than the customer and the business.

Hiab looks like it might be back on the fast track