Profit up for Cargotec

Cargotec, which includes crane brands Hiab, Kalmar and MacGregor, posted a profit of €58.5 million (US$66.7 million), up 12 % from €52.3 million ($59.6 million) in the same period a year earlier. The figure, excluding restructuring costs, was 7.1 % of sales (5.9 % in Q1 2015).

Sales at €828 million ($944 million) were down 7 % from the €889 million ($101 million) a year earlier.

Mika Vehviläinen, Cargotec CEO, said, “The start of the year 2016 was strong in Kalmar and Hiab, whereas the market situation in MacGregor remained challenging, as in the previous year. Despite the lack of orders for large automation projects, orders for Kalmar reached the comparison period's level and Hiab's order intake grew eight percent from the comparison period. Our sales declined seven percent from the comparison period. As earlier announced, the timing of Kalmar's deliveries lowered its first-quarter volume. MacGregor's sales were burdened by the challenging market situation. However, Kalmar's strengthened order book supports our growth target for the full year. According to target, our profitability improved to seven percent thanks to Hiab's very strong quarter. Due to restructuring measures undertaken in 2015, MacGregor's profitability was satisfactory considering the current market situation.”

In outlook Cargotec forecast 2016 sales to be at or slightly below the 2015 level of €3.7 billion ($4.2 billion). Operating profit, excluding restructuring costs, for the year is expected to improve from 2015’s €230.7 million ($262.9 million).