Cargotec steady so far in 2024

Hiab’s iQ.708 articulating loader crane launched in September 2024. Photo: Hiab

Crane and materials handling equipment manufacturing group Cargotec reported its latest financials as a “seventh quarter in a row with good and stable results.”

Changes to the group in 2024 saw the partial demerger of Cargotec and formation of a separate Kalmar Corporation, the port crane and container handling business, at the end of June. Since then Cargotec has comprised loader crane maker Hiab and offshore crane and deck equipment manufacturer MacGregor.

For the July to September quarter orders received were up 14 per cent to €597 million while sales were down 1 % (or €8 million) to €590 million over the same period a year earlier. Operating profit was €67 million, down from €77 million in the same period a year before. It was 11.4 % of sales.

Over the longer term, from January to September 2024, orders were up 10 %, to €1,833 million from €1,672 million in the first three quarters of 2023. Sales were flat at €1,833 million. Operating profit was €189 million (10.3 % of sales) down from €197 million and 10.7 % of sales in 2023.

Commenting on the results Casimir Lindholm, Cargotec president and CEO, said, “the third quarter was the seventh quarter in a row with good and stable results for Cargotec. Operational performance remained solid and there were no significant changes in the market environment which remained mixed. Expectations on lower interest rates and uncertainty in some of Hiab’s key geographies and industries continued to delay customer decision making. On the other hand, MacGregor continued to benefit from the strong ship building cycle.”

Full year forecast

For the full year 2024 Cargotec forecast a comparable operating profit margin above 14 %. For the first three quarters of 2024 Cargotec reported that comparable operating profit increased 17 % to € 223 million, or 12.2 % of sales. In 2023’s same period it was €191 million or 10.4 % of sales.

On the plans to sell off MacGregor, announced in May, Lindholm said, “The process has progressed according to plan and after good developments in October we target signing the deal before the year end. We are currently carving out MacGregor from Cargotec and building standalone capabilities for the business. We have also continued to prepare Hiab for its standalone future.”