Hiab boosted Cargotec in 2020

Crane and materials handling equipment maker Cargotec reported a positive trend in its 2020 financial performance from May onwards.

Total 2020 sales for the group, which comprises crane makers Hiab, Kalmar and MacGregor, were €3,263 million, down 11 percent from the €3,683 million of 2019. Operating profit for the group was €70 million (2.2 %) of sales, against €180 million (4.9 %) a year earlier.

Commenting on the results Mika Vehviläinen, Cargotec CEO, said, “In many ways, 2020 was exceptional for the whole world and also for Cargotec. The rapid spread of Covid-19 and related regulatory restrictions closed our own and our suppliers’ production units and caused unprecedented uncertainty on the market. On the other hand, our actions during the year proved our strategic direction to be correct. Our investments over the years in services, digitalisation and research and development, as well as in our asset-light operating model brought about good results.”

On the second half of the year Vehviläinen said, “After April and towards the end of the year, demand for Kalmar’s mobile equipment business and for Hiab increased strongly. In terms of orders received, Hiab’s fourth quarter was its best ever. Our year-end order book increased compared to the end of the third quarter, which gives us a good start for 2021.”

By division sales for 2020 were up strongly at hydraulic loader crane maker Hiab but down at port crane and container handling equipment division Kalmar and at marine crane maker MacGregor. Hiab sales were €503 million, up 24 % from the €406 million of 2019. Kalmar was €842 million, down 20 % from €1,049 million. MacGregor was €480 million, down 24 % from €633 million in 2019.

In outlook for 2021 Cargotec said it expects its comparable operating profit for 2021 to improve from the group total for 2020 when it was €228 million.