Cargotec reports strong first half, Hiab as the star performer

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Cargotec, the owner of Hiab, Kalmar and MacGregor, has reported a strong first half.

Hiab was the star performer for the period, with a first-half revenue boost of 11 per cent to €603 million. Its order intake, however, leapt 80 per cent to €933 million, leaving an order book at the end of June of €831 million, up 65 per cent on the year. Operating profit for the six months was 73.2 million, an increase of 58 per cent on the same period last year. Looking at the second-quarter sales jumped 30 per cent to €316 million, but order intake more than doubled to €508 million. Operating profits for the quarter more than doubled to €40 million.

Kalmar saw revenues for the first half slip seven per cent to €705 million, although order intake jumped 80 per cent to €1.13 billion, leaving an order book at the end of June of €1.26 billion, up 49 per cent on this time last year. Operating profit more than quadrupled to €46.1 million. In the second quarter sales improved nine per cent to €382 million, while operating profit came in an at €28.2 million, compared to a €13.1 million loss in the same quarter last year.

Cargotec as a whole saw first-half sales decline two per cent to €1.58 billion, however it managed to lift pre-tax profits to €55.8 million, compared to a loss in the same period last year of €8.4 million.

Cargotec chief executive Mika Vehviläinen said: “The second quarter was significantly different from the comparison period. The demand for our solutions was further increased by the market recovery after last year’s difficult pandemic situation and the increase in economic activity that started at the end of 2020. Our main demand drivers – number of containers handled at ports globally, construction activity, and the level of new vessel contracting – were all growing strongly in early 2021.”

“Our orders received more than doubled, reaching an all-time record of almost €1.3 billion. A strong mobile equipment demand pushed Kalmar’s orders received to a record-high level of €600 million. Orders for Kalmar’s automation solutions remained moderate as customers continue to consider their larger investments carefully.

Hiab’s demand remained exceptionally strong, with orders received reaching a record number for a third consecutive quarter. MacGregor’s orders received increased by 41 per cent from the comparison period as shipbuilding recovered in both merchant ship and offshore sectors.”

“Our order book increased by 43 per cent from the end of 2020, driven by high orders in Kalmar mobile equipment and Hiab. We estimate that, in addition to the strong market, high demand is due to the pent-up demand from last year as well as customers preparing for longer delivery times and price increases.”

“Our sales increased by 13 per cent from the comparison period, although global logistics challenges and component shortages in the supply chain have extended our delivery times and limited our ability to meet the increasing demand.”

“The economic recovery from the pandemic is also reflected in the prices of raw materials, components and freight transportation. We are prepared to respond to the situation with price increases and active cooperation with our suppliers.

Challenges in the supply chain and the related price increases mainly affected Kalmar’s results. Cargotec’s comparable operating profit increased by 41 per cent, driven by higher comparable operating profit in Hiab. The impact of extended delivery times and increased costs will also be seen in the next quarter, but we expect the situation to improve towards the end of the year.”

“Our service business developed strongly in the second quarter with service orders received increasing by 27 per cent compared to the comparison period. Service sales grew by 12 per cent and, together with the software business, constituted 36 per cent of our total sales.”

“During this spring, we have refined our strategy and during the second half of the year, we will continue our determined investments in sustainable and profitable growth. Our key business driver is to reduce the carbon footprint of the logistics industry. We have continued our product development investments, and, during the end of this year, Kalmar’s entire portfolio becomes available as electrically powered versions.”

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