10.02.2010

Hiab ends year down 37%

Cargotec, owner of Hiab loader cranes and Kalmar reach stackers and port equipment has published its full year 2009 results.

Revenues at Hiab fell 37 percent to €568 million, with order intake falling 40 percent leaving an order book at year end of just €119 million. Operating income at the loader crane manufacturer fell from a profit of €49 million in 2008 to a loss of €35 million in 2009.

The fourth quarter showed some improvement with sales down just 29 percent to €152 million.

Kalmar saw revenues for the year fall 34 percent to just over €1 billion, although this accelerated in the fourth quarter to a fall of 48 percent, as order intake dried Order intake for the year was €738 compared to €1.5 billion in 2008, leaving the company with an order book of €427 million.

The group as a whole saw revenues fall by 25 percent to €2.5 billion while last years pre tax profit of €145 million turned into a loss of €26.7 million in 2009.

Cargotec’s chief executive Mikael Mäkinen said:
“There were many positives in 2009 despite the difficult market situation. Thanks to successful deliveries of marine cargo handling equipment we achieved an excellent result in marine business. Our cash flow strengthened throughout the year. In addition, our streamlining of operations and development of our supply set-up progressed as planned. I am satisfied with the €32 million underlying operating profit we reached in the fourth quarter and with restructuring costs remaining smaller than anticipated in the same period, our full year operating profit turned positive”.

Vertikal Comment

This is certainly a better result than what could have been, Cargotec has carried out substantial restructuring this year including the merger of Kalmar and Hiab at year end.

Its challenge now though will be to retain the performance and brand identity of its individual businesses, Hiab and Kalmar - which serve very different markets- after the operations are fully merged. Hiab’s revenues are now modest for such a major global crane brand at around $750 million.

In the final analysis there will be a good number of manufacturing companies that will look at a 25 percent fall in revenues and a double digit loss with envy this year.