Strong first half for Hiab

Cargotec - owner of Hiab and Kalmar - has released its half year results.

Loader crane manufacturer Hiab has reported a 23 percent increase in revenues for the first six months achieving €744 million, while order intake came in eight percent higher at just over €1 billion. Operating profit for the period jumped 45 percent to just over €106 million.

Looking at the second quarter, revenues were €404 million, up 28 percent on the same quarter last year, while order intake was just three percent higher leaving the order book at the end of June standing at €1.25 billion, up 27 percent on the year. Operating profits were 56 percent higher at €62.6 million.

Sister company Kalmar achieved total revenues of €1.07 billion, a 13 percent increase on last year, but a six percent decline in order intake compared to the first half of 2021. Operating profit declined 22 percent to €35.9 million, thanks to the hit the company is taking on the transfer of heavy crane assets to Rainbow Industries (RIC) See: Kalmar to transfer Heavy Crane assets to RIC. Comparable operating profit would have been 30 percent higher at €69.9 million.
Moving on to the second quarter, sales totalled €428 million - a 12 percent increase on the year - with order intake falling five percent to €567, leaving the order book at €1.6 billion, up 23 percent on the year. Operating profits came in at €5.9 million a decline of 22 percent due once again to the write of. Comparable operating income was €41.4 million, up 24 percent on the same quarter last year.

Cargotec as a whole which also includes MacGregor, reported half year revenues of €1.81 billion an increase on the same period last year of 14 percent, while the company achieved the pre-tax profit €76.4 million, an increase of 37 percent on this time last year.
Cargotec chief executive Mika Vehviläinen said: “The second quarter was successful for Cargotec. Our personnel did an excellent job in a challenging operating environment, making our good performance possible. Our orders received, order book and comparable operating profit reached all-time records. Also, our sales grew significantly compared to the comparison period.”

“Despite the cost level increases, our margins have remained at a good level which demonstrates our business agility and effective pricing. We again made price increases required by the market situation during the second quarter and continue to monitor the situation. The success was particularly prominent at Hiab, which reached record high sales and comparable operating profit in the second quarter.”

“We published our refocused strategy during the previous quarter this included the evaluation of strategic options of MacGregor including a potential sale of the business. MacGregor’s second quarter result was still burdened by the investments made to the offshore segment, low sales and delays in the service’s spare part deliveries as well as the weak profitability of the first offshore wind power projects.”

“In accordance with our strategy, we continued to focus on R&D during the second quarter. Our R&D investments increased by over 10 percent compared to the comparison period. We launched several new eco-efficient products during the quarter and, in response to the logistics industry’s growing demand for electric solutions, invested in expanding the Kalmar manufacturing plant in Kansas, USA. Our eco portfolio sales increased by 25 percent from the comparison period. The service business growth continued as well with sales up by 13 percent and orders received by nine percent. In the second quarter service sales constituted 32 percent of our total sales.”

“Our starting position for the latter half of the year is good. Even though market forecasts have been cut during the quarter, our markets are still estimated to grow. Despite the surrounding uncertainty, we enter the second half of the year in a good position with a strong balance sheet and a record order backlog. The supply chain challenges are expected to continue also during the second half of the year. In Cargotec’s business the third quarter is typically less active than the second quarter. We also anticipate the third quarter sales mix to be slightly weaker than in the second quarter.”


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