12.02.2013

Hiab up 9%

Loader crane division of Cargotec – Hiab – saw revenues and order intake rise nine percent in 2012 while restructuring costs depressed profits.

Revenues for the full year were €840 million nine percent higher than last year, while order intake also grew nine percent to €850 million, leaving the order book at the end of the period at €192 million, two percent up on 2011.

Operating income for the year fell 18 percent to €16.9 million, due to a €10 million restructuring charge taken in the fourth quarter. Without this profits would have been up 34 percent.

Looking at the quarter sales improved 13 percent to €235 million, on order intake up just one percent to €203 million. The business posted a loss of €1.7 million compared to a profit in the same quarter last year of €5.2 million – due to the €10 million restructuring cost already mentioned.

Looking at sister company Kalmar, revenues for the year were up 23 percent to €1.4 billion, on order intake up two percent to €1.49 billion, while operating income were more than cut in half to €22.4 million.

Cargotec as a whole improved revenues by six percent to €3.33 billion, on order intake down five percent to €3.1 billion. Pre-tax profits were €122 million, 36 percent lower than in 2011. Net debt at the end of the year soared from €299 million to €478 million.

The company has also announced that it will go ahead and list its MacGregor business on the Singapore stock market as a separate business.

Chief executive Tapio Hakakari said: “In 2012, we sought to improve profitability and cash flow. However, we did not achieve all our targets. The unavoidable consequence of this was employee cooperation negotiations. Unfortunately, as a result we were forced to let go of some employees. In addition, we launched a new operating model based on independent businesses. These changes are aimed at achieving streamlined operations, profitable growth and greater market share. We believe that we are in a strong position to turn the situation around, led by our new chief executive as of 1st March – Mika Vehviläinen."

Vertikal Comment

Cargotec is suffering from its switching of strategies over the last couple of years or so from centralising to decentralising... – all of which has cost it dearly. However, it appears to be on the right track now and while 2013 is not likely to be a great year for the business, it should be in a position to get the businesses settled and ready to grow more strongly in 2014.