Cargotec orders up, sales down

Hiab orders were up 44 % in the first quarter and operating profit was up 17 % but sales were down

Crane and port material handling equipment manufacturing group Cargotec saw a 43 per cent rise in orders in the first quarter of 2021 over the same period a year earlier.

Orders received for the group were €1,115 million, up 43 % from €781 million in the first quarter of 2020. Sales were down 15 % to €730 million from €858 million. Operating profit was €25 million, or 3.4 % of sales, down from €26 million (but up as a percentage: 3.1 % of sales) in the same quarter of the year before.

For hydraulic crane manufacturing division Hiab, orders were up 44 %, at €425 million in the first quarter, over the €296 million of Q1 2020. The sales numbers were €287 million, down 5 % on the €302 million a year earlier. Operating profit at the Hiab division, by far the highest in the group, was €33.1 million, up 17 % from €28.4 million in Q1 2020.

Commenting on the results Mika Vehviläinen, Cargotec CEO, said, “The gradual market recovery from the difficult pandemic situation began in the second half of 2020 and continued in the first quarter of 2021. Our orders received increased by 43 percent compared to the comparison period as all business areas increased their orders. Strong demand continued in Kalmar mobile equipment and Hiab solutions, and Hiab’s orders received was once again its best ever. Interest in Kalmar’s automation solutions also increased. MacGregor’s orders received increased by 7 percent, driven by a pick-up merchant ship market. Our order book increased by 22 percent compared to the end of 2020, which positions us well for 2021 onwards. Services orders received increased by 11 percent from the comparison period.

“Our sales decreased by 15 percent from the comparison period, reflecting the expected low order intake during last year’s second quarter and the beginning of the third quarter. The availability of product components did not have a material impact on our operations but, if prolonged, the global shortage of components could pose challenges. We monitor closely our supply chain performance and are actively cooperating with our suppliers. Service and software sales constituted 40 percent of our total sales. Despite the difficult pandemic situation and restrictions caused by it, services sales only decreased by 2 percent.

“Despite the decline in sales, our comparable operating profit increased by 14 percent. Comparable operating profit increased in Hiab and MacGregor while Kalmar’s profitability weakened.”

Note exchange rate at the time of writing: €1 = US$1.2 approx.