Third quarter results reveal difficult period for Cargotec

Cargotec's third quarter financial results reflect an increasingly tough year for the Finland-based group that includes Hiab, Kalmar and MacGregor.

For the period January to September 2009 orders received were €1.4 billion (US$2.1 billion), compared to €3.1 billion ($4.7 billion) for the same period in 2008. Orders received in the third quarter, totalled €437 million ($659 million), compared to €967 million ($1.5 billion) for the same quarter last year.

That represented a 23% drop in sales over the three quarters and a 34% drop in the third quarter.

Operating profit was affected in the same way at €29.6 million ($44.7 million) for the three months in 2009, compared to €156.9 million ($241.1 million) in 2008. In the third quarter operating profit, excluding restructuring costs, was €11.6 million ($17.5 million), down from €49.6 million ($74.8 million) last year, representing 2.1% of sales.

"We have initiated significant structural changes and restructuring measures in order to improve efficiency and competitiveness. I am very satisfied with the commitment of our organisation to the change, although we have had to make tough decisions to adjust our cost structure," said Mikael Mäkinen, Cargotec president and CEO.

"The cost savings are already beginning to improve our profitability. The current weak demand for cargo handling equipment is something we cannot impact, but with the restructuring, we are stronger than ever when the market recovers," added Mäkinen.