Cargotec suffers 8pc profit decline to US$33.7 million as sales rise 2pc
HELSINKI cargo handling giant Cargotec suffered an eight per cent year-on-year decline in first quarter profit to EUR31 million (US$33
HELSINKI cargo handling giant Cargotec suffered an eight per cent year-on-year decline in first quarter profit to EUR31 million (US$33.7 million) drawn on revenues of EUR773 million, which increased two per cent.
Looking forward, Cargotec expects its comparable operating profit for 2019 to improve from 2018's EUR242.1 million, said a company statement accompanying the results.
'The demand for Cargotec's load handling solutions continued to be strong during the first quarter of 2019,' said CEO Mika Vehvilainen.
'Orders grew 18 per cent and the growth was evenly spread between all of our business areas. Sales developed favourably as well, increasing 11 per cent.
'Our comparable operating profit remained at the comparison period's level. Kalmar's profitability improvement was driven by higher sales,' Mr Vehvilainen said.
The sales grew also in Hiab, but especially the challenges in the supply chain led to a decline in the comparable operating profit compared to the first quarter of 2018, he said.
'We continued our efforts to solve these issues, and believe that Hiab's performance will improve during the second half of 2019. Despite the increase in MacGregor's orders received, the market situation remains difficult. Nevertheless, MacGregor's comparable operating profit remained positive,' he said.