MacGregor dents Cargotec performance

Financial results for the Cargotec group, owner of crane maker Hiab, showed an increase in sales of 16 % to €904 million in the second quarter of 2015, up from €804 million, in the same period a year earlier.

Profitability and order backlog were also up for the Finland-headquartered group that also includes the MacGregor marine cranes and Kalmar dockside lifting and handling equipment manufacturers. The order backlog, at €2.342 billion, was up 6 % from the position six months earlier at the end of 2014.

Operating profit without restructuring costs was €58 million, up from €4.7 million a year earlier. It was 6.2 % of sales compared with just 0.6 % a year earlier. On the downside, however, operating profit with restructuring costs was down €6 million to €54.9 million and orders received in the second quarter declined 11 % to €887 million from €993 million. Net income of €27.4 million was down €9.3 million.

For the first half of the year sales were up 17 % to €1.825 billion from €1.555 billion and net income for the period was €63.9 million, up from €3.6 million in H1 2014.

Mika Vehviläinen, Cargotec president and CEO, said, “In the second quarter market activity and orders were healthy in Kalmar and Hiab, but orders for MacGregor remained low due to a challenging shipping market. Our sales developed favourably during the quarter. The development of Hiab and Kalmar's operating profit margin during several quarters shows that profit improvement measures have yielded sustainable results. We cannot be satisfied with profitability in MacGregor. However, effectiveness and cost savings programmes are progressing as planned and we continue with our determined efforts to safeguard MacGregor's profitability.”

Vehviläinen continued, “I am delighted to state that Kalmar and Hiab completed their profit improvement programmes - begun in 2013 - ahead of schedule. Efficiency improvement in these business areas continues but the focus is shifting towards profitable growth. We have determinedly invested in product development and our offering. Hence, I am convinced that we can provide our customers with significant added value in their cargo handling needs. We will also continue developing our service business in all business areas.”

In outlook Cargotec forecasts higher sales and operating profit (excluding restructuring costs) in 2015 than 2014.