First quarter sales fuel optimism at Cargotec

By Euan Youdale03 May 2011

Cargotec forecasts 2011 sales will grow some 20% following a healthy first quarter order intake in its Industrial & Terminal and Marine segments.

Orders received in the first quarter of the financial year, January - March 2011, grew 37%, totalling €819 million (US$1.2 billion). The order book amounted to €2.4 billion ($3.5 billion) at the end of the period. Sales grew 37% and totalled €763 million ($1.1 billion). Operating profit was €50.6 million ($74.9 million), representing 6.6% of sales.

In February, Cargotec's 2011 sales were estimated to grow by more than 10% and 2011 operating margin was estimated to continue to improve.

"Market activity for cargo handling solutions has, despite the natural catastrophes afflicting the world, strengthened to the extent that we raise our estimated sales growth for 2011 to approximately 20%," said Mikael Mäkinen, Cargotec president and CEO.

"Our strong order intake for the first quarter confirms our success in the markets. The profitability improvement in Industrial & Terminal compared to the previous quarter is important for us, even if sales were slightly lower. After the regulatory approvals of the Navis acquisition at the end of March, the development of our container terminal segment was started"

Other figured from the company's first quarter results show cash flow from operating activities before financial items and taxes totalled €36.2 million ($53.6 million). Net income for the period amounted to €36.2 million ($53.6 million). Earnings per share stood at €0.59.

"Sales growth and significant efficiency improvement measures executed during the past years, support profitability, but there is cost pressure on the markets. Cargotec's 2011 operating profit margin is estimated to be approximately 7%," added a company spokesman.

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