01.02.2024

Record result for Hiab & Kalmar

Cargotec, owner of Hiab cranes and Kalmar Marine handling equipment has published its annual results today, with record sales and profits, but lower order intake. The results of the two key operations are as follows.

Hiab

Full year
Total revenues €1.79 billion +13%
Order intake €1.47 billion -19%
Order book/backlog €799 million -33%
Operating Profit €252 million +16%

Fourth Quarter
Total revenues €450 million -1%
Order intake €401 million +6%
Operating Profit €47.8 million -22%

Kalmar

Full year
Total revenues €2.05 billion +5%
Order intake €1.7 billion -18%
Order book/backlog €1.02 billion-28%
Operating Profit €264.2 million +86%

Fourth Quarter
Total revenues €509 million -18%
Order intake €405 million-26%
Operating Profit €58.9 million – 12%

Cargotec as a whole
Cargotec, which also includes MacGregor, saw full year revenues improve 12 percent to €4.57 billion. While the pre-tax profits reached €453 million compared to just €79 million for 2022. The difference due to most of the additional revenues flowing through to the bottom line.

Chief executive Casimir Lindholm said: “2023 was a step change for Cargotec in many ways, with good results for four consecutive quarters. As a result, we reached record high sales, comparable operating profit and cash flow for the full year. In April we announced our plan to separate our core businesses Kalmar and Hiab into two world leading standalone companies.”

“The business environment in 2023 was complex due to geopolitical tensions, high interest rates, and low consumer confidence. On one hand we harvested on our high order book, which was collected in 2021 and 2022. Hence, our sales in 2023 increased by 12 percent, while service sales and eco portfolio sales reached record levels. Driven by higher sales, successful management of inflationary pressures as well as MacGregor turnaround, our comparable operating profit improved by 62 percent, representing 11.2 percent of the consolidated sales.”

“On the other hand, orders received were on a lower level than in the exceptional years of 2021 and 2022. We addressed the lower order intake with cost saving actions announced in October, aiming for €50 million annual fixed cost savings in 2024. The actions have progressed according to our expectations. We reduced approximately 300 roles globally in the fourth quarter related to the cost savings and we are confident reaching the target.”

“2024 will be another exciting year for Cargotec. We will continue to focus on executing the planned partial demerger and look for a solution for MacGregor. In addition, we are well-prepared to respond to the prevailing market conditions as we progress on our journey towards two world leading listed companies.”

Vertikal Comment

This is another very good set of numbers from Hiab and Kalmar, although there are signs that the market is slowing and that 2024 might be more challenging.
Cargotec also needs to get on with the separation of the two main companies and the sale of MacGregor. The whole thing has been dragging on for far too long. It is now saying that it will ask shareholders to approve the demerger plan at the Annual General Meeting at the end of May. So hopefully by midyear it will be done, and
Hiab and Kalmar will be separate standalone companies, while MacGregor might just have a new owner.

In spite of this the business is clearly doing well and each operating business in decent shape for separation.