Profitability up, sales down at Cargotec

Cargotec saw improved profitability but a 5 % decrease in sales during the first half of 2016.

Sales for the first six months of 2016 were Euro 1,727 million (US$ 1,900 million), down from €1,825 million ($2,008 million) in H1 2015. Profitability was better in the Hiab hydraulic articulating crane and Kalmar port crane and handling divisions. For the MacGregor offshore crane and deck equipment business profitability was described as being “satisfactory considering [the] current market situation.”

Operating profit, excluding restructuring costs, was up 12 % to €123 million ($135 million) from €110.3 million ($121 million), or 7.1 % of sales instead of 6 % in H1 2015.

Commenting on the results Mika Vehviläinen, Cargotec CEO, said, “Our business developed favourably during the second quarter. Orders for Kalmar decreased slightly from the comparison period’s level, while Hiab’s order intake grew eight percent from the comparison period. It was pleasing to see service orders increase 12 % compared to the comparison period. Profitability continued to improve in Kalmar and Hiab compared to the previous year. On the other hand, the market situation in MacGregor remained challenging. At MacGregor we have already begun implementing new measures to lower our cost level through actions taken primarily in Norway as well as by merging two divisions.”

In outlook Cargotec forecasts 2016 sales to be at the 2015 level of €3,729 million ($4,103 million) or slightly below. Operating profit, excluding restructuring costs, for 2016 is expected to improve from 2015’s €230.7 million ($253.9 million).