29.04.2016

A strong start for Hiab

Hiab has reported a significant rise in revenues, order intake and profitability in the first quarter.

Total revenues for the quarter were €246 million, 16 percent higher than in the same quarter last year, with order intake rising eight percent to €275 million. Operating profits increased 18 percent to €32.4 million. The company’s order book at the end of March was two percent higher at €328 million.

Sister company Kalmar, the port handling business, saw revenues dip seven percent to €367 million, while operating profits fell more than 12 percent.to €25.2 million. The company’s order book was eight percent higher at €973 million.

Cargotec as a whole achieved revenues of €828 million, seven percent lower than last year, due to lower revenues at both Kalmar and MacGregor. Pre-tax profits for the period were more than eight percent higher at €50.9 million.
Chief executive Mika Vehviläinen said: “The start of the year 2016 was strong in Kalmar and Hiab, whereas the market situation in MacGregor remained challenging, as in the previous year. Despite the lack of orders for large automation projects, orders for Kalmar reached the comparison period’s level and
Hiab’s order intake grew eight percent from the comparison period. Our sales declined seven percent from the comparison period. As earlier announced, the timing of Kalmar’s deliveries lowered its first-quarter volume”.

“MacGregor’s sales were burdened by the challenging market situation. However, Kalmar’s strengthened order book supports our growth target for the full year. According to target, our profitability improved to seven percent thanks to Hiab’s very strong quarter. Due to restructuring measures undertaken in 2015, MacGregor’s profitability was satisfactory considering the current market situation”.

“Execution of our strategy published at the end of 2015 is proceeding according to plan in all three focus areas: services, digitalisation and leadership development. In March, we closed the Interschalt acquisition, which is important for the development of our services and software businesses. In early April, we organised our first hackathon, where 57 hackers–chosen from numerous volunteers–invented, among other things, the use of mobile technologies at ports. At the exhibition for load handling equipment, we also introduced a new virtual way of controlling a forestry crane remotely from inside a truck cabin. In addition, during the quarter we launched an internal leadership development programme, which will continue throughout the year”.