21.10.2015

Hiab doubles profits

Hiab, Kalmar and MacGregor owner Cargotec, has reported a strong third quarter for all three operations with a doubling of profits at Hiab

Hiab revenues for the nine months to the end of September were €679 million eight percent up on last year, with order intake increasing six percent to €717 million. Operating profits for the period more than doubled, from €30.1 million to €68.6 million.

Looking at the third quarter revenues improved 14 percent to €229 million, outpaced by order intake, up 21 percent to €239 million. Operating profits continued their strong pace doubling from €12 million to €24.8 million. While the year to date profit numbers last year included high restructuring costs – enhancing the comparison, the quarterly number is largely free of this and is a genuine indication of underlying improvement.

Kalmar reported year to date revenues up 16 percent to €1.19 billion, with order intake jumping 24 percent to €1.37 billion. Operating profits improved almost 22 percent to €92.7 million. In the third quarter revenues were €409 million – up six percent, with order intake up 22 percent to €463 million. Operating profits improved just over 15 percent to €35.5 million.

Cargotec as a whole saw revenues increase 15 percent to €2.75 while pre-tax profits more than tripled, increasing from €44.7 million at this point last year to €149.2 million.

Chief executive Mika Vehviläinen said: “Market activity in container handling and truck-related load handling solutions continued to be healthy in the third quarter. Our investments in new products and operational development were highlighted in several major orders received during the quarter. Demand was strong in the United States and Europe. For MacGregor, the challenging market situation in merchant shipping and offshore continued, resulting in low order volumes. Overall Cargotec’s orders and sales developed favourably during the quarter. Profitability continued to improve in Kalmar and Hiab. During the quarter, to improve profitability MacGregor announced new restructuring measures in addition to the already on-going programmes”.

Vertikal Comment

It is good to see such a strong performance at a time when the markets we cover seem to be taking an uncertain pause in growth. Cargotec had struggled for a long time, but the more settled and more entrepreneurial, decentralised management strategy of recent years really seems to be paying dividends.

Both Hiab and Kalmar are making strong comebacks in their respective markets, with Hiab in particular really beginning to build some strong momentum.

Let’s hope we have a few more results like these.