08.02.2017

Strong year for Hiab

Loader crane manufacturer Hiab has reported strong growth on revenues, order intake and profitability for 2016.

The company saw revenues for the full year rise 12 percent to €1.04 billion, while order intake was five percent higher at €1.02 billion. Operating profits for the business jumped almost 40 percent to €139 million, thanks to a better mix of products, increased manufacturing efficiency and a more profitable geographic mix of business.

In the fourth quarter order intake grew by 13 percent to €282 million, driven my new product launches, revenues were three percent higher at €257 million leaving an order book the end of the year six percent lower at €286 million. Operating profit for the quarter was five percent up on the same period in 2015 to €32.4 million.

Sister company Kalmar did not quite as well with revenues up two percent to €1.7 billion with operating profits down nine percent to €115.6 million, mostly due to restructuring costs. Cargoptec overall which also includes the MacGregor marine business, saw full year revenues six percent lower at €3.5 billion, while pre-tax profits declined nine percent to €169.1 million.

Chief executive Mika Vehviläinen said: “2016 was a good year for Cargotec: operating profit excluding restructuring costs was the highest in our history, operating profit margin continued to improve and we had a strong cash flow. Hiab in particular had a very good year, successfully launching a number of new product innovations as it outgrew its competitors. Profitability improved also in Kalmar. We made significant investments in the software business, among other things, to enable future growth. Considering MacGregor's challenging market conditions, the year was satisfactory and new measures to ensure profitability were implemented quickly. “

“We have significant growth potential in the services business. In 2016, Hiab's services business developed favourably, Kalmar's performance improved towards the end of the year and MacGregor suffered from the weak market conditions.”

“I am very satisfied with our progress in developing our leadership. We have engaged over 200 key leaders already, and an intensive people leader development continues in 2017, through which we aim to establish a more uniform performance-based leadership culture at Cargotec. We continue to develop services business, digitalisation and leadership excellence in 2017. These are key factors for the achievement of market leadership in intelligent cargo handling. I believe that our investment in the development of operations will improve our operating profit also in 2017.”

Vertikal Comment

Hiab is on a roll now and making a very strong comeback, it is really giving Palfinger and Fassi a run for their money now after years of lagging behind. The market for loader cranes is still far from mature with plenty of growth potential. Three strong competitors can only help keep the pace of development and choice on a positive trend.

We expect the progress Hiab has made in 2016 to continue to gather pace in 2017, while port handling company Kalmar also looks to have overcome its challenges and should see a better year . Interesting times.