As the world emerges from the peak of the COVID-19 pandemic Cargotec reported that demand has improved towards the end of the second quarter 2020 with customer activity levels beginning to rise.
Over the period April to June 2020 orders received by the company decreased by 27% compared with 2019.
However, Mika Vehviläinen, CEO at Cargotec, said, “The orders received improved month-by-month after a weak April, which provides reason to believe that the bottom was reached in the second quarter for orders received.”
He added, ”The second quarter began in a very exceptional situation with the rapid spread of the coronavirus in our main market areas. The virus, and in particular the resulting regulatory restrictions, had a strong impact on our business in the beginning of the second quarter.
“However, the operating environment improved as the quarter progressed. The operating hours we collect from our connected equipment also show that customers’ activity levels have been clearly rising since the drop in the beginning of the quarter.”
Despite this the company said that visibility towards the end of 2020 remains weak and is not able to give guidance for the year 2020.
However, Cargotec did estimate that its business and operating environment would develop as the recover of market activities continues.
It also said it expects the delivery capability of Cargotec and its supply chain to continue to improve and productivity improvements can be expected which will ultimately support profitability in the future.
Cargotec also pointed out that all of its assembly sites were back in operation by June and the crisis has further increased customer interest in remote maintenance services.
“We start the second half of the year in a stable position. Our financial position is strong and at the end of the quarter, Cargotec’s total liquidity was €970 million. In addition, our order book is still at a good level,” concluded Vehviläinen.