23.07.2017

Another positive quarter for Hiab

Loader crane manufacturer Hiab has posted another positive quarter, while sister company Kalmar posted higher profits on lower revenues.

Starting with the first half, Hiab revenues were four percent up on the same period last year at €552 million, with order intake rising 10 percent to € 514 million. Six month operating profits were €836 million 14 percent up on last year.
Kalmar, on the other hand saw revenues for the six months fall two percent to €767 million, while order intake fell seven percent to €834 million. Operating profits were five percent higher at €59.2 million.

Looking at the second quarter Hiab reported revenues roughly the same as last year at €282 million, on orders 17 percent higher at €279 million. This left the order book/backlog at €290 million one percent up on this time last year. Operating profit improved seven percent to €44 million.

Kalmar posted second quarter revenues of €403 million, four percent down on last year, with order intake falling 12 percent to €386 million, with an order book at the end of June of €926 million, three percent up in the year. Operating profits were €32.5 million five percent higher than last year.

Cargotec as a whole – which also includes MacGregor – posted revenues of €1.64 billion down five percent on the year. Pre-tax profits slipped eight percent to €99.4 million.

Cargotec chief executive Mika Vehviläinen said: “The development of our business continued to be positive during the second quarter of 2017. The operating profit, excluding restructuring costs, was the highest in Cargotec's history. The business developed particularly well at Hiab, where the orders received increased by 17 percent and profitability improved to a record high level. In Kalmar, the orders received declined compared to last year. Nevertheless, the customer interest in port automation solutions continued to be high. Despite the positive development of container throughput, customers are considering their larger investments carefully. Kalmar's operating profit continued to improve. The market situation for MacGregor is still difficult, even though orders received increased compared to the first quarter. We managed to keep MacGregor's operating profit, excluding restructuring costs, positive also during the second quarter.”

“We are especially pleased with the development of our software business during the second quarter. Our software sales grew strongly during the quarter. We also defined a broader software strategy for Navis, part of Kalmar, during the first half of the year. The strategy offers a more comprehensive set of solutions to optimise the performance of terminals and carriers. Our cloud-based collaboration model will add transparency, efficiency and profitability to the network of ocean carriers, terminal operators and logistics providers.”

“We are continuing to increase our efficiency as planned. During the second quarter, we announced that we are targeting EUR 50 million savings from 2020 onwards by reducing indirect purchasing spend, streamlining business support processes and establishing Cargotec Business Services operations.”

Vertikal Comment

Hiab continues to make progress and with order intake outpacing sales it looks as though the trend will continue throughout the year. Kalmar continues to struggle a little, but will be heartened by the improving profitability.

All in all this shows how the company has it right in terms of corporate strategy and should encourage managers to continue the decentralisation process.