The Wolfson Centre for Bulk Solids Handling Technology Sailors SocietyPort of StocktonBühler GmbHViganTOC Events
  • Cleveland Cascades Ltd
  • The Wolfson Centre for Bulk Solids Handling Technology
  • TBA Group
  • Sailors Society
  • Vigan
  • Bühler GmbH

Reasonable result for Cargotec despite pandemic

Reasonable result for Cargotec despite pandemic

(Posted on 23/10/20)

Cargotec’s interim report January–September 2020 has shown that performance improved from the second quarter. July–September 2020 was relatively profitable at the comparison period’s level and from January–September 2020 service business remained stable in an exceptional environment.

Cargotec’s CEO Mika Vehviläinen announced:

“Even in an exceptional operating environment, Cargotec's strategic direction has proved to be the right one and yet again we managed to make a reasonable result despite the pandemic situation. Visibility was still weak at the beginning of the third quarter but the recovery in the market environment that started after April eventually continued throughout the third quarter.

Our delivery capability returned back to normal during the quarter, and the same goes for our supply chain. On the other hand, the data collected from our connected equipment tells us that the activity levels of our customers have been rising closer to last year’s levels. In addition, for example Drewry's statistics on the number of containers handled in ports show that the reduction has so far proved to be less dramatic than what the forecasts predicted.

Following the strengthened confidence along the quarter, Cargotec's Board of Directors decided in August on the second instalment of the dividend to be paid in accordance to the original proposal. In mid-September, as visibility improved, we also gave a financial outlook for the third quarter.

In accordance with our guidance, orders received increased compared to the second quarter, although decreasing by 14 percent from the third quarter 2019. Demand for Kalmar's mobile equipment and Hiab's solutions recovered in particular from the decline caused by the coronavirus pandemic. Regarding larger automation orders, uncertainty and pandemic restrictions still slowed down the customer decision making, and the situation in the offshore oil and gas as well as merchant ship markets remain challenging. However, MacGregor received a significant order during the quarter to supply a mission-critical system in an offshore wind foundation installation vessel. This is the largest single vessel contract secured by MacGregor.

The recovery trend in sales from the second quarter also continued and our services business remained stable. However, sales remained below the comparison period’s level, which was also reflected in a decrease in comparable operating profit. Productivity improvements and cost savings helped our relative profitability to still remain close to the comparison period’s level and, in accordance with our guidance, the comparable operating profit increased from the second quarter. Despite volumes being lower than in the comparison period, Kalmar's and Hiab's results were satisfactory and MacGregor's comparable operating profit rose to black numbers. In terms of cost savings, our focus is shifting from temporary measures to more permanent actions.

Our focus on product development and sustainability continues. Our research and development investments as well as sales of our eco-efficiency portfolio increased in the first nine months 2020.

On 1 October, we announced the plan to combine Cargotec and Konecranes through a merger.   The merger is subject to the obtaining of merger control approvals, among other items.”

Latest News

Damen tugs to operate at Queensland bulk ports

(Posted on 11/05/21)

Damen Shipyards Group has been awarded a contract by Australia-based Engage Marine for the delivery... Read more


Superior reveals new mobile ship loading conveyor

(Posted on 10/05/21)

Superior Industries, Inc., a US-based manufacturer and global supplier of bulk material processing and... Read more


Thordon Bearings appoints first female CEO

(Posted on 08/05/21)

Anna Galoni has been appointed Chief Executive Officer (CEO) of bearing and seal specialist Thordon... Read more


Damen launches crane barge in Yichang

(Posted on 06/05/21)

Damen Yichang Shipyard has launched a 75 x 32 metre Crane Barge into the water. The event was seasonally... Read more


Danelec Marine partners with ioCurrents

(Posted on 06/05/21)

Danelec Marine’s DanelecConnect ship-to-shore data solution and cloud-based infrastructure has... Read more


Desmi develops new BWMS covering bulker solutions

(Posted on 04/05/21)

In order to meet market and customer demand, DESMI has developed two new Ballast Water Management Systems... Read more


Alfa Laval strengthen ties with Asian shipyards

(Posted on 04/05/21)

During spring 2021, Alfa Laval will begin implementing a new production line for Alfa Laval PureBallast... Read more


Combi Lift returns to Damen for new mega-barge

(Posted on 04/05/21)

On the 19th of April, Damen delivered the 111-metre Damen Stan Pontoon 11226 RD mega-barge Tomsk to... Read more


Bedeschi America to supply Texas handling system

(Posted on 29/04/21)

Vistra Energy Corporation has contracted Bedeschi America for the design and supply of a lignite receiving... Read more


Cargotec refines vision for sustainability

(Posted on 29/04/21)

Cargotec's Board of Directors has confirmed the company's refined strategy and vision. Breakthrough... Read more


Van AalstTBA GroupTelestackCoaltrans Global 2021Port of South LouisianaCleveland Cascades Ltd
  • Van Aalst
  • Port of South Louisiana
  • Port of Stockton
  • Cimbria

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping