28.04.2009

Cargotec stays in the black

Cargotec, owner of Hiab loader cranes and Kalmar port handling equipment has released its first quarter results which show the company remained marginally profitable.

Hiab revenues for the period were €153 million, 34 percent lower than for the same period last year, while order intake fell 40 percent to €138 million, the order book at the end of the March was €148 million, just 10 percent lower than at the end of March 2008

The division posted an operating loss of €8.1 million, prior to restructuring costs of around €4 million. This compares to a profit of €17.7 million last year

Kalmar posted revenues of €306 million just five percent down on last year, while order intake dropped 54 percent to €224 million, although the company still sits on a €611 million order book. Operating income was €13.6 million compared to €19.4 million last year.

The MacGregor ship crane and hatch business had revenues of €218 million – up 23 percent on last year although order intake slipped 78 percent to €96 million, however the company sits on a €2 billion order book, so it is not exactly suffering. Operating income rose 55 percent to €18.4 million.

The group as a while achieved revenues of €675 million just seven percent down on last year. Pre-tax profits were just €900,000 compared to €39.4 million in 2008

Cargotec chief executive Mikael Mäkinen said:
"Our performance in the first quarter was in line with our expectations. Delivery volumes were still rather healthy, but order intake weakened clearly compared to the record-high level during the comparison period 2008. Cost savings from the restructuring measures initiated were not yet visible in the result, but we are on the right track and the results will start to show later this year. In order to further improve our efficiency and global footprint, we plan to close a loader crane factory in Meppel, Netherlands, and invest in a new multi-assembly unit in Poland. In addition, we are taking a big step in executing Cargotec's One Company strategy with the planned combination of Hiab and Kalmar sales and services network in EMEA region."