Hiab and Kalmar merger brings group loss
13 October 2009
Cargotec has announced that restructuring costs from its Hiab and Kalmar merger will result in an operating loss for 2009.
In June 2009, Cargotec revealed plans to merge the Hiab loader crane and Kalmar port handling business areas into a new Industrial and Terminal segment to increase efficiency and customer focus.
However, additional restructuring charges of about €20 million (US$29.6 million), adding to the previous estimate of €50 million ($70 million), are now being forecast for this year. This means the group's earlier hopes of "slightly positive" 2009 figures, following the merger, will not be met.
"The planned reorganisation and capacity adjustment measures are estimated to have an effect of further reducing some 500 employees globally," added a company spokesman. Although the company's combined streamlining and restructuring measures are likely to bring more than €150 million ($222 million) in annual savings, according to Cargotec.
The Industrial and Terminal business area became operational on 1 October 2009. The existing Hiab and Kalmar organisations will continue until the end of the year to ensure a smooth transition.
"The possible measures for the personnel reductions will be initiated locally in employee cooperation procedures in each country. The major countries affected by the announced plans are Finland with an estimated impact of 180 persons and Sweden with an estimated impact of 130 persons," added the spokesman.
Cargotec employs about 1,500 people in Finland and 2,000 in Sweden.
