The company said, “Cargotec’s financial results reflect a year of two very distinct halves,in which the first half was characterised by soaring demand, which then plummeted due to the global fnancial crisis and slowing markets, especially in Hiab.”
Sales for the group grew 13% over the year, at EUR3,399m (USD4,360m) from EUR3,018m (USD3,870m), and continued to rise in the last quarter, to EUR 924m from EUR868m. Orders declined however, falling EUR337m from EUR4,106m in 2007 to EUR3,769m in 2008. The overall decline was caused by a substantial decline in orders received in the last quarter: in the last three months of the year orders fell by EUR581m to EUR633m, from EUR1,214m in the last quarter of 2007.
Cargotec’s outstanding orders totalled EUR3,054m on 31 December 2008, up from EUR2,865m. Hiab accounted for EUR164m (down from EUR260m), Kalmar EUR704m (EUR660m) and MacGgregor EUR2,187m (EUR1,946m).
Cargotec said, “Sales for the fourth quarter were EUR924m (from EUR868m in Q4 of 2007). Hiab’s sales amounted to EUR216m (EUR244m), Kalmar’s EUR413m (EUR364m) million and MacGregor’s EUR298m (EUR261m). Hiab’s sales declined due to the weakened market in Europe during the second half of the year. Kalmar’s and MacGREGOR’s sales grew as a result of strong order intake and increased deliveries.
“Capacity utilisation rates were lowered by a major slowdown in the European market during the third quarter, clearly eroding the proftability of Hiab in the second half of the year. Hiab’s operating proft was further burdened by the slower and more-expensive-than-expected ramp-up of Hiab’s component plant extension in Narva, Estonia.
“In both Hiab and Kalmar, raw material and material costs continued to rise in the second half which, alongside faltering demand, affected proftability. Clear signs of falling costs, due to reductions in raw material prices, and lower capacity utilisation rates among subcontractors, only emerged at the very end of the year.”
