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Cargotec wants more from MacGregor, profits up in H1

Cargotec wants more from MacGregor, profits up in H1
Cargo handling equipment provider Cargotec has reported improved profit in the second quarter, as cost saving measures prove effective for two of its brands.

Profit for the quarter was EUR27.4m, up from a EUR9.3m loss in the same period last year. Sales were up 15% to EUR936m, but orders received dropped by 11% to EUR887m.

The results come against a backdrop of reduced orders for bulk carriers and related cargo handling equipment, and although significant container ship orders were made during the quarter, orders for their cargo equipment have yet to be placed.

"In the second quarter, market activity and orders were healthy in Kalmar and Hiab, but orders for MacGregor remained low due to a challenging shipping market," commented Cargotec president and ceo Mika Vehviläinen. "Our sales developed favourably during the quarter. The development of Hiab and Kalmar's operating profit margin during several quarters shows that profit improvement measures have yielded sustainable results.

Macgregor's own cost saving initiatives are at an earlier stage than those of its stablemate brands, 220 lay-offs were announced in April, around 8% of the division's workforce.

"We cannot be satisfied with profitability in MacGregor. However, effectiveness and cost savings programmes are progressing as planned and we continue with our determined efforts to safeguard MacGregor's profitability."

Orders received at MacGregor fell 35% to EUR220m, split two thirds to merchant ships and one third to offshore vessels. Operating profit for MacGregor stood at EUR22.1m, the orderbook dropped 7% to EUR1.1bn, and sales rose 18% to EUR308m.