In the first three months of 2020, Hiab’s orders stood €296, a €45m (13%) year-on-year decrease.

Cargotec’s sales revenue increased by €2m to €858m, while orders dropped by 24% to €781m.

“The pandemic’s impact was evident on all business areas, especially in orders as well as in Hiab’s sales and result,” Cargotec said.

Cargotec’s CEO Mika Vehviläinen said: “The coronavirus pandemic defined the beginning of the year 2020 globally, and also in Cargotec’s business. The pandemic slowed our activities in China during the beginning of the year, as factories were faced with lower capacities, and the availability of components weakened. However, the situation improved towards the end of the quarter. In January–February, the market situation in Europe and the Americas, our largest markets, appeared to be reasonable, but by the end of March, market visibility had essentially weakened. Since then, the increase in the market uncertainty and the government actions to contain the pandemic have slowed customers’ decision-making and affected orders and deliveries negatively.

“To minimise the effects of the coronavirus pandemic, we have initiated measures to adjust our cost structure. The office workers (ca. 6,000 employees) have shifted to a four-day working week with a corresponding reduction in salaries, subject to local legislation. Until further notice and with their consent, the salaries of the company’s management have been reduced by 20% as of 1 April. We have also reduced the use of external services and minimised travelling. We are closely monitoring the market and global situation and are well positioned to adjust our operations further if needed.

“Our financial position is strong. As the coronavirus situation began to materialise, we prepared for the potential instability in the financing markets by drawing two-year bank loans in April from our correspondent banks with a total amount of €200m euros.”