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Cargotec Q1 profit off 6.6pc to US$39.7 million as sales slip 4.2pc

FINLAND's Cargotec Group, manufacturer of freight handling gear, posted a first quarter 6.6 per cent net profit decline to EUR36.5 million (US$39.7 million), drawn on revenues of EUR793 million, down 4.2 per cent year on year.

Cargotec said it reiterated its outlook published on February 8 and expects its operating profit excluding restructuring costs for 2017 to improve from 2016 to EUR250.2 million.

"We are proceeding well towards our target to be the leader in intelligent cargo handling," said Cargotec CEO Mika Vehvilainen.

"The year 2017 started with a strong note, particularly at Hiab, where the orders received and the operating profit margin reached an all-time high.

"Kalmar's development as a whole was at a satisfactory level. Its profitability improved and demand was healthy especially in mobile equipment," said Mr Vehvilainen.

"As in 2016, MacGregor's market situation continued to be challenging. However, we are pleased that we managed to keep MacGregor profitable, and that its orders received increased compared to the last quarter of 2016.

"By 2020, our goal is to increase the share of services and software to 40 per cent of Cargotec's sales. Service sales grew at Hiab and Kalmar but decreased at MacGregor as a result of the difficult market situation.

"Our software business developed positively in the first quarter, which reflects our efforts over the past few years. During the first quarter, already as much as 32 per cent of our sales came from services and software," he said.