Hiab sales up, but group profits down, at Cargotec

13 February 2019

Hiab, the knuckleboom and load handling subsidiary of Cargotec, has reported sales revenue of €1.15bn in 2018, 6% higher than the previous year. The company’s profitability was underminded in part, however, by currency and supply chain challenges.

“The demand for Hiab’s load handling equipment in 2018 was supported in the United States and Europe by the construction activity, which remained at a good level. The demand for services improved from last year,” said Cargotec.

In 2018, Hiab received orders of €1.26bn, up 16% year-on-year. The order book at the end of the year for its machines amounted to €453m, marking a 51% increased compared to the same time in 2017.

Cargotec's CEO Mika Vehviläinen, said:  “Although the demand for Hiab's equipment and services continued to grow strongly, its operating profit declined, particularly as the US dollar weakened against the euro, but also due to challenges with the supply chain and related additional costs.”

The manufacturer’s operating profit dropped by 15% to €133.8m.