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Cargotec Release Half Year Interim Report

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Cargotec has released its January-June interim report, in which profitability was seen in its Kalmar and Hiab divisions, as well as satisfactory profitability in MacGregor.

In April-June, 2016, orders received decreased 7% and totalled more than US$908 million. However, the order book amounted to more than US$2.2 billion at the end of the period.

Operating profit, excluding restructuring costs, increased 12% and was more than $71 million, representing 7.2% of sales.

In January-June, 2016, orders received decreased 5% and totalled more than $1.9 billion, with operating profit, excluding restructuring costs, increasing by 12% to more than $135 million, representing 7.1% of sales.

Cargotec's 2016 sales are expected to be at the 2015 level or slightly below, with operating profit, excluding restructuring costs for 2016, expected to improve from 2015.

Mika Vehviläinen, CEO of Cargotec, said: “Our business developed favourably during Q2, 2016. Orders for Kalmar decreased slightly from the comparison period's level, while Hiab's order intake grew 8% from the comparison period.

“It was pleasing to see service orders increase 12% compared to the comparison period. Profitability continued to improve in Kalmar and Hiab compared to the previous year. On the other hand, the market situation in MacGregor remained challenging. At MacGregor we have already begun implementing new measures to lower our cost level through actions taken primarily in Norway as well as by merging two divisions.

“The execution of our strategy published at the end of 2015 is proceeding in all three focus areas: services, digitalisation and leadership development. Business areas have continued their service development efforts during the quarter, and we have increased resources for digitalisation initiatives.

“For example, we launched the first products based on our common Cargotec IoT Cloud, a shared connectivity and analytics platform for all our businesses, through which we can provide more efficient analytics to our customers based on equipment data.

“The INTERSCHALT integration is proceeding as planned and we are getting positive customer feedback about the combined offering of XVELA's maritime industry software and the INTERSCHALT software. Our internal leadership development programme was launched during the last quarter and has gone forward according to plans.”

APMs are used at Cargotec to better convey the underlying business performance and to enhance comparability from period to period. APMs are not substituting the performance measures stipulated by IFRS, but are instead reported as complementary information.

Restructuring costs include restructuring provisions, asset impairments and disposals, expenses for vacant premises and other restructuring-related expenses in case of a significant restructuring programme of Cargotec or its business area.

Fact File: Cargotec is a leading provider of cargo and load handling solutions with the goal of becoming the leader in intelligent cargo handling. Cargotec's business areas: Kalmar, Hiab and MacGregor offer products and services that ensure its customers have continuous, reliable and sustainable performance. Cargotec's sales in 2015 totalled approximately more than $4 billion and it employs over 11,000 people.

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