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Cargotec H1 profit off 7pc to US$79.6 million as sales fall 5pc
FINLAND's Cargotec Corporation, a leading provider of cargo handling technology, has declared a seven per cent year-on-year decline in first half net profit to EUR74 million (US$79.6 million), drawn on revenues of EUR845 million, down five per cent.
Nasdaq Helsinki-listed Cargotec's business areas are Kalmar for port equipment, Hiab at sea gear and MacGregor for offshore loads, which together generated EUR3.5 billion in revenue and employed 11,000 people in 2016.
The company said that Kalmar's profitability improved and Hiab provided a record-high operating profit and strong orders while conceding that MacGregor's performance lagged.
Outlook for 2017 was unchanged as Cargotec reiterated its February forecast, expecting its operating profit excluding restructuring costs for 2017 to improve year on year to EUR250.2 million.
"The development of our business continued to be positive during the second quarter of 2017," said Cargotec CEO Mika Vehvilainen, referring to the "excellent development at Hiab".
"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 per cent and profitability improved to a record high level," he said.
"In Kalmar, the orders received declined but its 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," Mr Vehvilainen said.
"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."
"Our cloud-based collaboration model will add transparency, efficiency and profitability to the network of ocean carriers, terminal operators and logistics providers," he said.
"We are continuing to increase our efficiency as planned. During the second quarter, we announced that we are targeting EUR50 million savings from 2020 onwards by reducing indirect purchasing spend, streamlining business support processes and establishing Cargotec Business Services operations."
Nasdaq Helsinki-listed Cargotec's business areas are Kalmar for port equipment, Hiab at sea gear and MacGregor for offshore loads, which together generated EUR3.5 billion in revenue and employed 11,000 people in 2016.
The company said that Kalmar's profitability improved and Hiab provided a record-high operating profit and strong orders while conceding that MacGregor's performance lagged.
Outlook for 2017 was unchanged as Cargotec reiterated its February forecast, expecting its operating profit excluding restructuring costs for 2017 to improve year on year to EUR250.2 million.
"The development of our business continued to be positive during the second quarter of 2017," said Cargotec CEO Mika Vehvilainen, referring to the "excellent development at Hiab".
"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 per cent and profitability improved to a record high level," he said.
"In Kalmar, the orders received declined but its 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," Mr Vehvilainen said.
"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."
"Our cloud-based collaboration model will add transparency, efficiency and profitability to the network of ocean carriers, terminal operators and logistics providers," he said.
"We are continuing to increase our efficiency as planned. During the second quarter, we announced that we are targeting EUR50 million savings from 2020 onwards by reducing indirect purchasing spend, streamlining business support processes and establishing Cargotec Business Services operations."
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