21.07.2015

Profits soar at Hiab & Kalmar

Cargotec, owner of Hiab loader cranes and Kalmar port equipment has published its half year results which show strong improvements to all of its business sectors.

Hiab revenues increased five percent to 450 million for the half year with order intake almost identical to the same period last year at 477 million. Operating profits at the loader crane company were 43.9 million more than double last years levels.

Looking at the second quarter revenues Improved seven percent to €237 million, although order intake dropped 15 percent to €221 million, mainly due to the fact that the company booked its big MAN contract in the same quarter last year. However the order book at the end of the quarter was 12 percent higher than this time last year at €297 million. Operating profits for the period jumped around 63 percent to €25.3 million.

At Kalmar year to date revenues jumped 21 percent to €786 million, with order intake up 25 percent to €906 million. Last years loss of €9 million was converted to a profit this year of €57.1 million. In the quarter revenues jumped 21 percent to €391 million, while the operating profit of €28.2 million compares to a loss in the same quarter last year of €19.7 million.

Chief executive Mika Vehviläinen said: “In the second quarter, market activity and orders were healthy in Kalmar and Hiab, but orders for MacGregor remained low due to a challenging shipping market. Our sales developed favourably during the quarter. The development of Hiab and Kalmar's operating profit margin during several quarters shows that profit improvement measures have yielded sustainable results. We cannot be satisfied with profitability in MacGregor. However, effectiveness and cost savings programmes are progressing as planned and we continue with our determined efforts to safeguard MacGregor's profitability”.

“I am delighted to state that Kalmar and Hiab completed their profit improvement programmes – begun in 2013 – ahead of schedule. Efficiency improvement in these business areas continues, but the focus is shifting towards profitable growth. We have determinedly invested in product development and our offering. Hence, I am convinced that we can provide our customers with significant added value in their cargo handling needs. We will also continue developing our service business in all business areas”.

Vertikal Comment

A first class set of numbers from Cargotec which really seems to be on a roll now, with all three of its businesses beginning to find their stride after years of struggling as a centralised bureaucracy changed overall strategies back and forth in knee-jerk reactions to quarterly results.

The decision in 2012 to decentralise to the operating companies and dispense with a bloated corporate headquarters is now starting to pay off in spades, especially when combined with the current economic improvements.

The next few years look bright for Cargotec.