News story

Cargotec forecast improves

Wednesday, 16 September 2020 ( #992 ) - Helsinki, Finland
Vehvilainen
Vehvilainen
Cargotec has revised its forecast for the third quarter of 2020, noting that performance has been "better than expected". The company estimates orders received and comparable operating profit will increase, compared to the second quarter of this year. Cargotec's business development continued well during July and August, prompting the materials handling manufacturer to predict that orders received and comparable operating profit would increase from the previous quarter. In its 2020 half-year financial report on 17 July 2020, Cargotec estimated that in the current exceptional situation, it was not able to give guidance for the year 2020. At the time, it noted a recovery of market activity and improved delivery capability for its own products and for its supply chain. Cargotec also flagged productivity improvements which would support profitability in the future. In July, Cargotec revealed the impact of the changing global financial conditions, with falls in orders, sales and operating profit. CEO Mika Vehvilainen said the second quarter began with "a very exceptional situation with the rapid spread of the coronavirus in our main market areas". Vehvilainen said he believed the company was starting the second half of the year in a stable position, but conceded that visibility towards the end of the year was still weak. That visibility appears to be improving, according to the latest update.