Cargotec still rising

Sales at Cargotec in the third quarter of 2018 increased by 9 percent to €805 million (US$918 million) from €736 million ($839 million) for the same period of 2017.

In the divisions, third quarter sales at loader crane manufacturer Hiab were up 3 % from €252 million to €260 million ($287 million to $296 million). Offshore crane making division MacGregor saw the biggest rise in the quarter, of 14 %, from €114 to €130 million ($130 to $148 million) with the Kalmar port crane and handling equipment division close behind with a 12 % increase from €371 million to €415 million ($423 million to $473 million).

For the first three quarters of the year Cargotec Corp sales were €2,394 million ($2,729 million), up 1 % from the €2,364 million ($2,695 million) in the same period of 2017. In the divisions, sales at loader crane maker Hiab were up 3 % from €804 million to €831 million ($917 million to $947 million). The biggest increase was in the Kalmar port crane and handling equipment division where sales were up 4 % from €1,132 million to €1,174 million ($1,290 million to $1,338 million). In the offshore crane maker MacGregor division, sales were down 9 % from €429 million to €389 million ($489 million to $443 million).

Commenting on performance, Mika Vehviläinen, Cargotec CEO, said, “Our development continued to be strong in terms of orders received during the third quarter of 2018. Orders received grew in all of our business areas. The development was especially favourable in Kalmar, where the orders received were 38 per cent higher than in the comparison period. Also, our sales grew in all business areas, supported by the good order intake. Cargotec’s third quarter operating profit, excluding restructuring costs, remained at the comparison period’s level despite Hiab’s operating profit declining by almost one third. The decline in Hiab’s operating profit was mainly caused by the weakening of the US dollar compared to the euro, product mix, additional costs related to supply chain, as well as investments in sales and service capabilities and digitalisation.”

In outlook Cargotec said it maintains its original forecast from February 2018, expecting its operating profit, excluding restructuring costs, for 2018 to improve from the €258.6 million ($294.8 million) from 2017.