Finnish cargo handling equipment maker Cargotec has reported increased sales and profits for the first half of 2023, with a decline in orders back to pre-covid levels.
The company’s latest results include a 25% increase in sales to EUR1.2 billion (USD 1.33 billion) in the second quarter and by 26% to EUR2.27 billion (USD2.53 billion) in the first half.
Profit in the second quarter was EUR 108 million (USD120 million) and for the first half was EUR 180 million (USD202 million).
However, orders in the second quarter decreased by 28% and for the six-months to June orders were down 19%.
Cargotec president and chief executive officer Casimir Lindholm says: “The orders received are back to pre-covid level, declining from the all-time-high comparison period which included large non-recurring orders.
“However, our order book is clearly above the historical average level.”
Cargotec estimates its core businesses full-year comparable operating profit to improve from 2022, with its MacGregor maritime cargo and load handling unit’s comparable operating profit to be positive for the year after posting a EUR47 million loss in the previous period.
Lindholm says the improved profit and sales over the first half was “driven by higher deliveries and successful management of inflationary pressures and costs”.
Cargotec’s Kalmar cargo handling unit experienced a slowdown in orders but posted a 29% increase in sales in the first half, while the Hiab load handling segment reported a decline in orders from a record-high comparison period,.
Cargotec also reported the timeline for the planned spinoff of its Kalmar and Hiab units was on track.
“The planning has progressed in line with the previously communicated timeline and objectives and I am happy to announce that one of the key positions has been filled as Sakari Ahdekivi has been appointed Kalmar's chief financial officer,” Lindholm says.
“Planning will continue throughout 2023.”
The company says it is positive about its fully-year outlook.
"With the strong order book, combined with a scenario tool box ready to be implemented in case of rapid changes in the market environment, we aim to keep our core businesses' comparable operating profit above 10% even if the market situation would prove to be challenging."