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Cargotec Reveals ‘Smart’ Q1 Results

Cargotec Reveals ‘Smart’ Q1 Results

Carogtec has produced its Q1 interim report and has improved container handling profits while capitalising on rising demand for intelligent cargo handling amid fewer port crane orders.

Urging further focus on intelligent software, Cargotec’s software sales increased 28% year-on-year, and totalled about US$933 million.

Container handling machinery arm Kalmar experienced a 9% improvement in operating profits in the first quarter of 2017 over the same quarter last year. Although Kalmar received 1% fewer orders in Q1, 2017, it has improved service sales.

Cargotec orders received throughout the company for Q1 decreased 5% year-on-year, down to 857 in Q1, 2017 from 903 in Q1, 2016.

The company’s marine and offshore cranes arm MacGregor saw 30% fewer orders, but it retained a positive operating profit due to cost savings.

Cargotec repeated its expectation that its operating profit, excluding restructuring costs, for 2017 would improve from 2016, amounting to $272 million.

Mika Vehviläinen, Cargotec's CEO, said:  “By 2020, our goal is to increase the share of services and software to 40% of Cargotec's sales.

“Service sales grew at Hiab and Kalmar but decreased at MacGregor as a result of the difficult market situation.

“Our software business developed positively in the first quarter, which reflects our efforts over the past few years. During the first quarter, already as much as 32 percent of our sales came from services and software.

“We see many possibilities to improve the performance of the cargo handling value chain. With our solutions, know-how and expertise we want to help our customers make their operations more efficient. We are proceeding well towards our target to be the leader in intelligent cargo handling.”

Technical Paper: Data Alchemy and Smart Connected Terminals

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