24.10.2019

Buoyant third quarter for Hiab

Loader crane manufacturer Hiab has reported a strong fourth quarter for both sales and profits.

Total revenues for the nine months to the end of September, were €982 million 18 percent up on the same period last year. Order intake was nine percent up on the year at €988 million, leaving the order book at €458 million just one percent higher than at the start of the year. Operating profits for the period were €111 million an improvement of 12 percent on this time last year.
Looking at the third quarter sales were also 18 percent higher at €307 million, while order intake was also €307 million four percent higher than the same quarter in 2018. Operating profits were 27 percent higher at €30.3 million.

Sister company Kalmar posted nine month revenues seven percent higher at €1.25 billion, although order intake was nine percent lower at €1.33 billion, leaving the order book at €1.08 billion, seven percent higher than at the start of the year. Operating profit was €113.3 million, 24 percent higher than last year.
In the third quarter sales were two percent higher at €424 million, with order intake of €396 million down 19 percent on last year. Operating profit was 23 percent higher at €47.5 million.

Total year to date sales for parent company Cargotec which also include marine equipment and lifting company MacGregor were 11 percent higher at €2.67 billion, while operating profits jumped 26 percent to €137.7 million.

Chief executive Mika Vehviläinen said: “Operating profit continued to increase in Kalmar and Hiab, and I am pleased with the good development that continued in Kalmar and Hiab in the third quarter. Kalmar’s comparable operating profit increased by 24 percent and Hiab’s by 41 percent. Our actions to solve Hiab’s supply chain challenges which we started earlier this year proceeded as well.”

“Our service and software business progressed according to our plans. Service orders received increased by four percent, while service sales increased by 13 percent. Software sales grew by 11 percent. The sales of our services and software business was about €1.2 billion during the last 12 months, which is in line with our strategic target of €1.5 billion.”

Vertikal Comment

Hiab continues to go from strength to strength and looks well set for this to continue in 2020, with several new products coming on stream now and its reputation continue to recover the company is on a roll at the moment. The slower growth in order intake is perhaps a sign that growth will slow as we enter the new year, but not by a level that causes too much concern at this point.

On the other hand while Kalmar has performed well, it will be concerned over falling order intake as ports postpone capital expenditure and investment due to the increasingly uncertain global economy. The company is pushing hard to increase its service and software sales in order to try and offset some of the cyclical ups and downs of the market.

All in all another good set of numbers which also highlight market softening.