Sales leap for Cargotec

Crane manufacturing group Cargotec reported an 18 % increase in sales from €751 million (US$ 835 million) in the first quarter of 2014, to €889 million ($989 million) in 2015 for January to March.

The Finland-headquartered group includes Hiab truck mounted hydraulic cranes, Kalmar dockside cranes and MacGregor offshore cranes. Net income for the period January to March 2015 was €36.4 million ($40.5 million), up almost three times on the €12.9 million ($14.3 million) for the same period in 2014. Excluding restructuring costs operating profit was €52.3 million ($58.1 million).

Cargotec also reported a 9 % increase in orders, totalling €939 million ($1 billion), compared to the €863 million ($960 million) of orders received in the same period in 2014. Cash flow from operations before financial items and taxes totalled €51.6 million ($57.4 million).

Mika Vehviläinen, Cargotec president and CEO, said, “2015 began positively for Cargotec. We saw year-on-year improvement in all of our key figures. I am extremely pleased with the way our profit improvement measures are progressing with regard to Kalmar and Hiab. Our new product launches together with the improving market situation are demonstrating as growth in our order book and sales. Our profitability is improving step by step towards our 8 % EBIT margin target set for 2016.

“We are also satisfied with the 9 % growth seen in orders received in the first quarter. During the first quarter, the market situation related to Kalmar and Hiab developed favourably, while that of MacGregor weakened. We do not expect to see rapid improvement in MacGregor's market situation, which is why we have added a savings programme to our current programmes in order to safeguard the profitability of this business area.”

Cargotec said its outlook for 2015 remained unchanged and the company expected 2015 sales higher than 2014. Operating profit, excluding restructuring costs, for 2015 is also expected to improve from 2014.