Cargotec reports strong Q1 2019 results, simplifies leadership structure

Finnish load handling specialist, Cargotec, confirmed that the orders it received for the period January-March 2019 increased in all business areas.

According to Cargotec’s latest interim report, orders received increased by 18 per cent and totalled €1.022 million, while sales increased by 11 per cent, totalling €856 million.

The company’s operating profit was €51 million, which represented six per cent of sales.

Cashflow from operations before financial items and taxes totalled €31 million.

Cargotec CEO, Mika Vehviläinen, said demand for the company’s load handling solutions continued to he strong during Q1 2019.

“Orders received grew in total by 18 percent compared to the comparison period, and the growth was evenly spread between all of our business areas. Sales developed favourably as well, increasing by 11 percent.

“Our comparable operating profit remained at the comparison period's level. Kalmar's profitability improvement was driven by higher sales. The sales grew also in Hiab, but especially the challenges in the supply chain led to a decline in the comparable operating profit compared to the first quarter of 2018. We continued our efforts to solve these issues, and believe that Hiab's performance will improve during the second half of 2019. Despite the increase in MacGregor's orders received, the market situation remains difficult. Nevertheless, MacGregor's comparable operating profit remained positive.

“The development in our service and software business was good during the first quarter. Service sales grew by five percent and software sales by 18 percent. During the quarter, we strengthened our software offering by acquiring the US-based Cetus Labs, Inc., which offers a cloud-based Octopi terminal operating system (TOS) for small container and mixed cargo terminals. With the addition of Octopi to its software portfolio, Navis is better positioned to support thousands of smaller terminals around the world that are eager to modernise their terminal operations, yet lack the technology infrastructure or technical expertise required to support a full-scale Navis N4 TOS deployment. Service and software sales constituted around one third of our sales. Our target is to increase the annual sales of our service and software business to 1.5 billion euros,” he said.

In related news, Cargotec has simplified its leadership structure by combining its Executive Board and Extended Executive Board to form a new Cargotec Leadership Team.

The Leadership Team comprises former Executive Board members Mika Vehviläinen, CEO, Mikko Puolakka, Executive Vice President, CFO, Stefan Lampa, President, Kalmar Mobile Solutions, Antti Kaunonen, President, Kalmar Automation Solutions, Scott Phillips, President, Hiab, Michel van Roozendaal, President, MacGregor, Mikael Laine, Senior Vice President, Strategy, Soili Mäkinen, CIO, Mikko Pelkonen, Senior Vice President, Human Resources, and former Extended Executive Board members Outi Aaltonen, Senior Vice President, General Counsel, and Carina Geber-Teir, Senior Vice President, Communications.

The Leadership Team members report to Vehviläinen.

(Image: Cargotec CEO, Mika Vehviläinen.)

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