Sales at Cargotec for the first half of 2014 were up 3 % at Euro 1.555 billion (US$ 2.1 billion) from the Euro 1.515 billion ($2.05 billion) in the same period a year earlier. For the most recent quarter, however, sales were down 4 % to Euro 804 million ($ 1.09 billion) from Euro 836 million ($ 1.129 billion) in Q2 2013.
Cargotec includes the Hiab, Kalmar and MacGregor crane manufacturing businesses.
Operating profit for H1 2014 was Euro 17.8 million ($ 24 million), down from Euro 46.1 million ($ 62 million) in H1 2013. This decrease was attributed to project cost overruns in the Kalmar port crane and handling equipment division.
Mika Vehviläinen, Cargotec president and CEO, said, “Market activity remained brisk, with our orders for the second quarter growing in all business areas. Both Kalmar and Hiab had strong order intake compared to the previous quarters. In MacGregor, recent acquisitions supported the growth in orders compared to the comparison period.
“Due to a previously announced cost overrun in Kalmar projects, operating profit for the second quarter was unsatisfactory. As expected, MacGregor and Hiab saw positive profit development.
“The Euro 40 million [$ 54 million] profit improvement programme currently being implemented in both Kalmar and Hiab is proceeding as planned, and is actually ahead of schedule in Hiab. Unfortunately, due to project cost overruns, the effects of the programme are yet to make a visible impact on Kalmar's operating profit. We are continuing our determined efforts to see this programme through.”
A plan to separately list the MacGregor cranes, marine handling and deck equipment business, has been reversed, Vehviläinen said.
In outlook the company said its 2014 sales are expected to grow from 2013 and that operating profit excluding restructuring costs for 2014 is expected to improve from 2013.