Orders boost for Hiab in Q36 November 2017 by Sotiris Kanaris
Load handling equipment manufacturer Hiab, subsidiary of Cargotec, has received orders totaling €260m in the third quarter of 2017, up 18% compared to the same period in 2016.
Hiab’s third quarter sales were down by €2m year-on-year, with the manufacturer saying that supply chain bottlenecks had a negative impact on sales.
In the period from January to September, orders grew by 13% year-on-year to €827m. Over this time, sales grew 3% to €804m, while operating profit increased from €107.1m to €117.2m. Hiab’s profitability improvement was attributed to higher volumes as well as new products.
During the third quarter, Hiab received a ProCare service contract from a UK-based customer. The agreement covers over 200 Hiab loader cranes and lasts a maximum of seven years. Hiab also received an order for close to 40 forestry cranes from Russia. In addition, an order for 1,000 tail lifts was received from Asia during the quarter as well as an order for over 30 loader cranes from two UK-based customers. Otherwise the orders were relatively small individual ones, typical for Hiab business.
As a group, Cargotec saw sales drop by 8% year-on-year in the first nine months of 2017 to €2,378m. Operating profit was €169.4m, representing 7.1% of sales.