Cargotec has reported record profits for the first three quarters of the year, with increased orders in all business areas.

The company’s latest results include order increases of 16% for the last quarter and 9% since the start of the year.

Sales rose 27% for the quarter and 19% for the nine months.

Cargotec CEO Mika Vehviläinen notes “record results in comparable operating profit, order book, sales and services sales”.

“Our third quarter comparable operating profit was an all-time high, and the combined comparable operating profit for the three first quarters was as much as EUR12 million (USD13 million) higher than the whole of last year.”

Vehviläinen says orders received increased in all businesses. “Our order book reached yet another record, increasing by 38% from the comparison period and 4% from the previous quarter.”

However, he notes that component shortages, delays in truck deliveries and global logistics challenges limited the group’s ability to fully respond to demand.

“The general cost increases are affecting us as well, but we have mostly been able to transfer the increased costs to our prices,” he explains.

The CEO stresses that Cargotec has been executing its refocused strategy for six months. “Going forward, we will focus on sustainability and profitable growth in Hiab and in Kalmar mobile equipment and exit from Kalmar’s heavy cranes business. 

“We announced in July that Kalmar is planning to transfer heavy cranes-related intellectual properties and assets to Rainbow Industries Co. Ltd. in China. The process is at its final stages with the transfer of the last assets presently ongoing.”

Cargotec, he says, has also evaluated its operating model and will increase the independence of its business areas even further. Tasks related to sourcing and information management are planned to be transferred from the group level to businesses, he says. 

He notes that Cargotec’s centralised work in the field of digitalisation has been successful and will also be transferred to the business areas in its entirety. 

“Increasing the independence of the business areas speeds up decision-making and our operational capabilities, and improves our customer centricity even further,” he explains.

In another strategic move, Vehviläinen says the company is continuing its evaluation of a possible sell-off of the MacGregor business.