Rocla Oyj's operating profit for 2005 suffered mainly through increased steel costs, the Finnish forklift manufacturer said in its annual financial statements.

Net sales of Rocla industrial trucks for fiscal 2005 amounted to EUR85.9 million (USD102.2 million), up 7.5 per cent from 2004's total of EUR80 million (USD95.2 million) but operating profit decreased 26.4 per cent from 2004's EUR7.6 million (USD9.0 million) to EUR5.6 million (USD6.7 million).

Increased steel costs impacted on manufacturing costs for long-term agreements, Rocla said.

Industrial trucks accounted for 89 per cent of consolidated net sales and automated guided vehicles made up 11 per cent. Seventy-four per cent of the group's net sales were from exports and operations outside Finland.

Benelux countries, the UK, France and Spain were Rocla's biggest export markets with Russia and the Baltic states forming a growing market.

Rocla said its Russian subsidiary, OOO Rocla Rus, in St Petersburg, established in 2005, was built up over the year as a significant maintenance and service base for its truck operations and Rocla aimed to strengthen its market position in Russia.

Rocla's new corporate strategy includes exploiting synergies between its industrial trucks and automated guided vehicles business areas for product development, sourcing and customer services.

For 2006, the group's main objectives are to achieve a 10 per cent growth in net sales and to improve the operational result from 2005. The group aims to be a leading source of materials handling solutions and services by 2010.

Rocla listed on the Helsinki Stock Exchange in 1997. Its three largest shareholders on December 31, 2005, were Etra-Invest Oy Ab, Mitsubishi Caterpillar Forklift Europe BV and Mitsubishi Caterpillar Forklift America Inc.