Higher sales, fewer orders for Hiab
Cargotec has published its third quarter results showing higher sales and profits for Hiab, and Kalmar, but both saw steep falls in order intake.
for the nine months to the end of September were €1.34 billion, up 19 percent on the same period last year. Order intake however was 25 percent lower than last year at just over €1 billion, leaving the order book 24 percent lower at €900 million. Operating profit
for the period was up 31 percent to €204.4 million.
were 16 percent higher at €1.54 billion, although order intake fell 15 percent to €1.3 billion, leaving the order book/backlog 18 percent lower at €1.17 billion. operating profit
on a like for like basis increased 77 percent to €205.3 million.
for the quarter were 11 percent higher at €420 million, compared to the same quarter last year. Order intake fell 27 percent to €311 million. Operating profit
for the period was 24 percent higher at €61.5 million.
Third quarter revenues
slipped four percent to €503 million, while order intake fell 17 percent to €392 million. operating profit
jumped 63 percent to €64.1 million.
Cargotec, which also includes MacGregor saw revenues
rise 18 percent to €3.06 billion, while pre-tax profit
more than tripled to €3.06 billion. Net debt at the end of September was 16 percent lower at €406 million.
Chief executive Casimir Lindholm
said: “In the big picture, the third quarter was a continuation of the first half of the year. We are operating in an increasingly complex business environment due to geopolitical uncertainty, high interest rates and low consumer confidence. With larger investments in particular, we saw our customers postpone their investment decisions. Our orders received declined 20 percent. However, we kept harvesting our large order book collected in the past two years when the order intake was exceptionally high. Our operational execution was at a good level and sales increased by six percent. Eco portfolio sales continued to grow faster, by 13 percent, representing 33 percent of total sales in the quarter.”
Hiab, orders received continued to be affected by delayed customer decision making, stemming from high inflation and interest rates as well as extended truck chassis delivery times. Hiab’s order book however, remained at a good level.”
“In Kalmar, the demand picture was mixed, and orders received declined 17 percent. Demand for smaller mobile equipment used in small and midsized terminals and industrial operations remained at a good level while our distribution related product categories were impacted by destocking. With larger equipment, the customer decision making remained slow.”
“Separation of our core businesses Kalmar and Hiab into two world leading standalone companies is progressing according to the previously communicated plan. Despite prevailing market uncertainty, I feel confident about our future. We have made significant progress in many areas and with the cost saving actions, combined with continuous improvements and investments, we aim to safeguard our profitability and keep our core businesses' comparable operating profit above 10 percent even in challenging market conditions.”
This is a bit of a mixed back from Hiab and Kalmar, while the immediate result is very positive, the lower third quarter growth and order intake, along with shrinking order books suggests a slowing market, although as we have seen at Palfinger the long lead times of trucks and chassis is also having an impact, while possibly pushing higher demand forward into 2024 and 2025.
The upcoming separation plans for of Hiab and Kalmar might also be having something of an impact as dealers wait and see?. All said and done this is another very positive set of numbers from both companies.