Cargotec lowers its 2012 operating profit margin forecast to 5pc

CARGOTEC has announced that it is reducing its full-year 2012 operating profit margin guidance given in July to five per cent, excluding non-recurring costs, down from earlier forecasts of six per cent growth.

A statement from the company said: "Due to cost overruns, the profitability of large projects in the terminals business area fell below expectations in the third quarter, and therefore also the fourth quarter performance is expected to remain below previous expectations. Cargotec's guidance is also affected by slippages of deliveries over the year-end into 2013 in the marine business area.

According to preliminary results, the company's third quarter order intake amounted to EUR719 million (US$932 million) with sales of EUR794 million and an operating profit margin of 4.9 per cent.

Cargotec said measures to improve its operating profit are estimated to result in non-recurring restructuring costs during the final quarter of the year. "The exact amount of the restructuring costs will be specified after the ongoing employee cooperation negotiations have been concluded," it added.