Strong performance for Cargotec in first half

Operating profit: Parent company Cargotec posted a record high comparable operating profit margin for the first half of 2023. Photo: Hiab

For the first half of 2023 Cargotec posted a 26 per cent rise in sales over the same period in 2022 and a record high “comparable operating profit margin” of 13.2 %.

In money terms this was a 90 % increase from €142.5 million in 2022 H1 to €270.7 million in the same period this year.

The Finland-based crane and materials handling equipment maker, however, posted a 19 % decline in orders received, at €2,058 million, down from €2,525 million. Having said that, the order backlog at the end of June still stood at €3,242 million, down 8.4 % from €3,541 million at the end of 2022.

Commenting on the performance Casimir Lindholm, Cargotec president and CEO, said, “The eventful second quarter was the first one for me as the CEO of Cargotec. Financially, the second quarter was twofold. The orders received are back to pre-covid level, declining from the all-time-high comparison period which included large non-recurring orders. However, our order book is clearly above the historical average level. Our sales increased by 25 percent and in comparable operating profit we again reached a new record level of €158 million and a 13.2 per cent margin, driven by higher deliveries and successful management of inflationary pressures and costs. Strategically important service businesses and eco portfolio sales continued to grow.”

Good and bad at Hiab

On the Hiab loader crane division Lindholm commented, “In Hiab, underlying demand drivers remained at a good level but orders received declined from the record-high comparison period, which was boosted by pre-buying ahead of pricing increases. Order intake was also affected by inflation, high interest rates, and extended truck lead times. Hiab’s order book is at a strong level and, due to robust operational execution, Hiab’s sales grew by 20 per cent to €485 million. Hiab’s comparable operating profit increased by 31 per cent to €81 million stemming from higher sales, effective management of inflationary pressures and controlling costs.”

Cargotec consists of Hiab truck loader cranes, Kalmar port cranes and MacGregor offshore cranes and equipment. In April a proposal was announced to separate Kalmar and Hiab into two standalone companies. Planning for this is ongoing with a view to completing it in 2024, subject to the go-ahead being given.