Cargotec Reports Improved Operating Profit in Q1 2014 Due to Improvement Measures
Cargotec's first-quarter 2014 report shows improved operating profit, particularly in its Kalmar and Hiab segments. The company reaffirmed its full-year outlook.
Helsinki – Cargotec announced a significant improvement in its operating profit for the first quarter of 2014, with notable gains in its Kalmar and Hiab business areas, driven by implemented improvement measures.
The company reported that group sales increased by 11 percent to EUR 751 million for the January-March period. Orders received grew to EUR 863 million. The operating profit, excluding restructuring costs, reached EUR 24.6 million, a substantial rise from EUR 15.0 million in the same period last year, representing a 3.3 percent profit margin.
President and CEO Mika Vehviläinen stated that the ongoing EUR 40 million profit improvement program is beginning to yield positive results in both Kalmar and Hiab, with Hiab's profitability reaching its highest in several years. However, he noted disappointment regarding cost overruns on a specific ship-to-shore crane project within Kalmar.
Regarding the MacGregor segment, Vehviläinen anticipates improved profitability in the coming quarters, despite a weaker performance in Q1 due to low delivery volumes for merchant ships and increased offshore business and acquisition costs. Cargotec reiterated its 2014 outlook, forecasting continued sales growth and an improved operating profit compared to 2013.
The company held a press conference in Helsinki to discuss the report. Cargotec is committed to continued efforts to enhance profitability.