Cargotec reports growth but aims higher

Sales and orders were up at Cargotec, although the company is looking for improvements in 2012.

The group, including Hiab, Kalmar and MacGregor, reported 18% order growth to €842 million (US$1.09 billion) in the October to December 2011 financial quarter. Sales grew 11% and totalled €828 million ($1.08 billion). Operating profit was €48 million ($62 million), compared to €38.5 ($50 million) in the same quarter in 2010.

For the 2011 financial year as a whole, orders also grew 18% and totalled €3.2 billion ($4.2 billion). Sales grew 22% to €3.14 million ($4.08 billion). Operating profit was €207 million ($269 million), compared to 131.4 million ($17.4 million) in the 2012 financial year.

"Once again, Marine segment achieved record sales and operating profit," said Mikael Mäkinen, president and CEO, "Orders, sales and operating profit grew markedly. Although we are not fully satisfied with the development in Industrial & Terminal, Cargotec's operating profit margin for 2011 rising to 6.6% shows that we are moving in the right direction."

Mäkinen added that the company will continue working towards its 10% target. "Uncertainty in general economic trends is impeding us from seeing ahead. At the end of the year, we announced a change in our operating model, from the beginning of 2012, in order to further accelerate the implementation of strategic initiatives," explained Mäkinen.

"Prior merging of business activities and centralisation of support operations have brought the planned benefits to our production facilities, sourcing activities and support functions. However, now is the time to differentiate, in order to secure the required development possibilities for each area," Mäkinen added.