Cargotec figures reflect expansion

19 March 2008

Orders were up but operating profit was down for Finnish cargo handling company Cargotec, following a series of acquisitions this year.

Results for the first six months of 2007 show orders were up at ∈ 1.85 billion (US$2.57 billion) compared to ∈ 1.59 billion ($2.20 billion) in the same January to June period in 2006. The company now forecasts orders to rise by nearly 20% throughout 2007, exceeding its growth target.

Sales grew by 13%, amounting to ∈ 1.44 billion ($1.98 billion). Nearly half the sales growth was organic, said Cargotec, which forecasts a total sales increase of 15% by the end of the year.

Cargotec completed 12 acquisitions between January and June 2007, the most significant being Hydramarine in Norway and Plimsoll in Singapore, which join the company's MacGregor Offshore division. As a result operating profit was down ∈ 7.8 million ($ 10.8 million) to ∈ 104.1 million ($ 143.8 million) from ∈ 111.9 million ($ 154.9 million) in the first six months of 2006.

Net income, however, for the period was up marginally from ∈ 74.7 million ($103.2 million) to ∈ 74.9 million ($103.5 million).

The number of Cargotec employees also swelled by 2,992, from 7,920 at the end of June last year, to 10,962. Some 1,835 of them were added as a result of the company's recent acquisitions.

Cargotec said the investments would enable profitable growth in line with its five year strategy and expected the operating profit margin to stay below 8% for the remainder of the year.

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