Cargotec profit falls 9pc, but sees turnaround, beating all estimates
FINLAND's cargo handling equipment giant Cargotec posted a nine per cent year on year decline in second quarter operating profit to EUR37.5
million (US$49.1 million), surpassing all forecasts in a Reuters poll
where the average estimate was EUR35.2 million.
"Favourable trends were seen in both Kalmar and Hiab's delivery volumes
and profitability during the second quarter," said Cargotec president
and CEO Mika Vehvilainen. "We are continuing our efforts to improve our
profitability."
Favourable results offset news from Cargotec marine unit MacGregor,
which makes hatch covers and cranes for ships, and whose sales forecast
was cut to EUR800 million from EUR850 million after orders were
deferred.
The Kalmar unit posted an operating profit of EUR16 million and the Hiab unit's operating profit stood at EUR9 million euros, both ahead of
estimates having been boosted by cost cutting.
Said FIM analyst Sanna Kaje: "Cargotec has often disappointed investors
and in that sense the lower valuation is understandable. But if there
will be profitability improvement, then the valuation looks attractive."
Cargotec's own full-year forecast has operating profit, excluding
restructuring costs, to be unchanged or slightly lower than in 2012 with 2013 sales to be slightly lower than in 2012.
Cargotec has suffered from the global economic uncertainty which has
made its shipping company and port operator customers reluctant to
budget for new equipment.
WORLD SHIPPING
21 July 2013 - 20:59
Cargotec profit falls 9pc, but sees turnaround, beating all estimates
THE Union Pacific Railroad's (UP), America's biggest rail freight carrier, posted a 10 per cent second quarter net profit increase to US$1.1 billion, drawn on revenues of $5.47 billion, up five per cent year on year.
WORLD SHIPPING
21 July 2013 - 20:59
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