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Cargotec profits more than double in Q1 2022

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Cargotec has released its interim report for the period of January to March 2022, reporting profits of more double Q1 2021 levels.

Over the period, sales increased by 17 per cent to €851 million ($898.3 million) from €730 million ($770.6 million) in Q1 2021.

Service sales also rose by 12 per cent, amounting to €284 million ($299.6 million). In the same period the previous year, this sum came in at €254 million ($268 million).

Over the last three months, eco portfolio sales grew by 38 per cent and totaled €202 million ($213.1 million).

Overall, Cargotec’s net income for the period came in at €21.1 million ($22.2 million), more than double the €9.6 million ($10.1 million) the company generated in Q1 2021.

© Cargotec

“The year 2022 has started eventfully. We refocused our strategy at the end of March. Sustainability and profitable growth remain our breakthrough objectives but, going forward, we focus on developing Hiab, Kalmar mobile equipment and straddle and shuttle carriers, as well as related services (Core businesses),” said Mika Vehviläinen, CEO of Cargotec.

“The decision to refocus the strategy follows the decision of the Boards of Directors of Cargotec and Konecranes to cancel the planned merger after the negative resolution of the UK Competition & Markets Authority. Along with the strategy refocus, we announced our plans to exit Kalmar’s heavy port cranes business and started an evaluation of strategic options of MacGregor.

“Our refocused strategy enables additional investments in research, development and M&A in our core businesses, providing us a good position to further enhance our business through electrification, robotics and digitalisation.

“The market environment has also evolved strongly during the first quarter. The persisting coronavirus pandemic and the related restriction measures have caused global delivery and logistics challenges, as a result of which also the level of inflation has risen. China’s strong blockage measures pose a risk that these challenges will continue.”

The Russia-Ukraine war also poses a large threat to Cargotec’s income in the form of component availability challenges and accelerating inflation. The company has halted sale of equipment in Russia and Belarus in response to the events.

“Despite the uncertain market situation, demand for our core businesses continued strong. Hiab reached its all-time second highest orders received while Kalmar’s demand remained on a strong level,” continued Vehviläinen.

“Our sales increased by 17 per cent during the first quarter, even when component challenges still had a negative effect on our sales development. We estimate the supply chain challenges to continue also during the rest of the year.”

Kalmar’s operating profit for the period increased by 26 per cent to €22.7 million ($23.9 million) from €18 million ($18.9 million) in Q1 2021.

© Cargotec

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