22.10.2009

Hiab down 40%

Loader crane company Hiab has reported nine month sales of €416 down 40% on the same period last year

The company says that the low sales volume, which also edged down in the quarter reflects the general weakness in the load handling equipment market and customers' lack of willingness to invest.

Order intake fro the period was €382 million, 42 percent down on last year, resulting in a decline in the company’s backlog of 23 percent to €127 million.

Hiab posted an operating loss of €29 million, compared to a profit of €46 million in 2008.

Sister company Kalmar, which builds reach stackers and port equipment, due shortly be merged with Hiab, saw revenues drop 28 percent to €795 while operating profits slipped 72 percent to €21 million. Order intake fell 53 percent to €576 million reducing the order book to €459 million 35 percent down on the year.

Cargotec’s other division MacGregor performed better with revenues up two percent to €704 million although order intake dropped 68 percent to €409 million cutting the company’s order book by 18 percent to €1.8 billion.

Cargotec as a whole saw revenues fell 23 percent to €1.9 billion, while pre tax profits fell from €142 million to a loss of €27 million.

Cargotec chief executive Mikael Mäkinen said: "We have initiated significant structural changes and restructuring measures in order to improve efficiency and competitiveness. I am very satisfied with the commitment of our organisation to the change, although we have had to make tough decisions to adjust our cost structure. The cost savings are already beginning to improve our profitability. The current weak demand for cargo handling equipment is something we cannot impact, but with the restructuring, we are stronger than ever when the market recovers".