The measures are estimated to affect some 700 people. The measures will aim to improve Hiab’s and Kalmar’s profitability and to adjust capacity in Hiab to the prevailing market situation, the company said, adding that there would be more information available by the end of October.

Due to a weakened market situation in Europe and US Hiab’s order intake is estimated to be lower than expected, mainly in construction related customer segments. This will affect negatively the utilization rate of the factories and profitability in the second half of the year. Hiab’s profitability during the rest of the year will also be weakened by a slower and more expensive than expected start-up of the component factory in Narva, Estonia. Kalmar will, in the third quarter, book a EUR 5 million provision related to cost overruns in ship-to-shore crane orders received in year 2006 and 2007.

Hiab’s operating margin in the second half of the year is expected to be weaker than in the first half. Full year operating margins for port equipment business Kalmar and ship equipment business MacGREGOR are still expected to improve from the previous year. Due to the delivery schedules, the improvement will be weighted on the fourth quarter.