News Content

Cargotec 9-month profit falls 23pc to US$36 million, sales off 8pc

FINLAND's freight handling hardware giant Cargotec posted a 23.1 per cent year on year net profit decline in the first nine months of 2016 to EUR33.5 million (US$36.4 million), drawn on revenues of EUR854 million, which fell eight per cent.

Orders decreased 19 per cent to EUR733 million with an order book amounting to EUR1.87 million through September, the company revealed.

Cargotec's 2016 sales are expected to be at the 2015 level - EUR3.72 billion or slightly below. Operating profit excluding restructuring costs for 2016 is expected to improve from 2015 to EUR230.7 million.

"We are focusing our efforts on projects that improve competitiveness, the cost efficiency of products and digitalisation," said Cargotec CEO Mika Vehvilainen.

"Additionally, we are investing in global systems and procedures that in future enable higher efficiency in operational activities as well as in support functions," he said.

"Our strategic focus areas are services, digitalisation and leadership development," said Mr Vehvilainen.

"In services we see tremendous business potential that we need to grasp with increased determination. We have increased our efforts in this area.

"In terms of digitalisation, we are developing Cargotec IoT Cloud-based solutions with our customers regarding, for example, automation effectiveness and proactive maintenance.

Our internal leadership development programme is expanding to the next phase now that the first 200 leaders have completed the intensive training programme.