02.02.2023
Strong finish for Hiab
Loader crane manufacturer Hiab has reported a strong end to the year, as has its sister company Kalmar. Hiab - part of Cargotec - has reported a strong performance for the year and in particular the fourth quarter.
Full Year
Hiab revenues for the year were €1.58 billion - up 26 percent on last year - while operating profit increased 50 percent to €217.1 million. Order intake for the year was five percent higher at €1.81 billion, leaving the order book at €1.18 billion - a 20 percent improvement on this time last year.
Fourth Quarter
Fourth quarter sales were 35 percent higher at €456 million, while operating profit came in €61.3 million - a jump of 81 percent on the same period last year. Order intake slipped two percent to €377 million.
Kalmar
Revenues at reach stacker and crane manufacturer Kalmar improved 28 percent to €1.94 billion, outpaced by order intake of €2.1 billion, roughly the same as last year. The order book at the end of the year was up 10 percent on the year at €1.4 billion. Operating profits however slumped 59 percent to €142.1 million, this was due to a €36 million write off relating to the transfer of the Kalmar heavy crane rights to Rainbow Industries in China in the summer, compared to a gain in the previous year - the comparable operating profit was €190.1 million, up 58 percent on last year.
Fourth Quarter
Fourth quarter sales totalled €618 million, up 44 percent on the same period last year. Order intake improved six percent to €544 million. Operating profits more than doubled to €67 million while ‘comparable' operating profit was €69 million, an increase of 90 percent on the year.
Cargotec results
Cargotec as a whole achieved revenues of €4.09 billion, a 23 percent rise on the year, pre-tax profits slumped 76 percent to €79 million due to various write offs and write downs.
Chief executive Mika Vehviläinen said: “2022 was excellent for Cargotec. Several global crises characterised the year, however, Cargotec's orders received, sales and comparable operating profit were at a record levels. The execution of the refocused strategy, published in March, has started successfully. The exit from Kalmar heavy cranes business is finalised, and the changes in the operating model, aimed at increasing the independence of the business areas, have been taken into use. Regarding the evaluation of strategic options for MacGregor, Cargotec’s board decided in November that, in the future, MacGregor would no longer be part of Cargotec’s portfolio.”
“We continued to invest in product development to support our customers' business and promote environmental solutions. As examples, Kalmar started serial production of fully electric reachstackers while Hiab now provides an electric version of all its truck mounted forklifts. These and many other of our eco-efficient solutions have been very well received by our customers, and the eco portfolio sales increased by 54 percent compared to the previous year, amounting to €964 million.”
“Cargotec goes into 2023 with a record order book. However, current economic forecasts and the global situation, as well as price increases and availability challenges of materials and components still create uncertainty. We are well prepared and able to react to rapid market situation changes. In addition, our financial position is strong, especially as only a small number of our loans will mature this year.”
Vertikal Comment
Another strong year for both Hiab, and ‘comparably’ speaking Kalmar. Cargotec is however set to go through something of a mini transformation as it looks to appoint a new chief executive and with any luck dispose of the MacGregor business, which once again marred the overall result with a negative result. Aside from that the company looks to be in good shape for further growth and higher margins, with the parts and service business continuing to grow, while investments in green energy powered machines is beginning to pay off. Hopefully it can find a chief executive who can build on the achievements over the past 10 years.
With that proviso, the future for the core business looks bright.
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