02.11.2007

US dents Hiab

Hiab has posted revenues for the first nine months of 2007 of €687million, an increase of just under two percent. Operating income over the same period fell 14 percent due to “a significant under utilisation of capacity resulting from the weak demand situation in the U.S.A”

Order intake was up by just under four percent lifting the company's order book to €255 million its highest level in at least two years.

Revenue growth came from a series of acquisitions during the period, including sales and service companies:- BG cranes in Australia (January), Berger in central Europe (February) and Bay Service in Florida (July). The company also acquired component producer Balti in Estonia in May.

The company says that demand for all of its load handling equipment remained very buoyant in Europe and Asia Pacific particularly in Central Eastern Europe, Russia and China.

The U.S. market remained weak, with new truck registrations falling below 2006 levels with no signs of recovery. A decline in the building industry in late spring, affected sales of truck-mounted forklifts, tail lifts and loader cranes.

The America's represent 21 percent of Hiab loader crane sales.

In Europe strong demand for trucks has extended delivery times,
disrupting installation schedules, which says the company has limited Hiab’s sales growth.

Hiab is part of Cargotec, which also owns Kalmar, the reach stacker and straddle carrier manufacturer. The company saw an 11 percent increase in revenues but also saw profits weaken, with a six percent fall in operating income.

Cargotec as a whole reported a 13 percent increase in revenues to €2.15 billion, with gross margins roughly flat, while net income fell by 14 percent to €109 million.

Corporate administration costs over the same period increased significantly with Cargotec headquarters staff almost doubling to 83.