Cargotec profit and orders surge on Asian demand

Wednesday, 25 September 2019

innish cargo-handling equipment maker Cargotec beat all forecasts with a jump in second-quarter operating profit and order intake, boosted by Asian demand, reported Reuters.

Cargotec said demand for handling equipment such as loader cranes and forklift trucks continued recovering in the quarter, although demand for container handling equipment in ports had showed only tentative signs of recovery.

"The results were good, surprisingly good. New orders and profitability in the marine segment was the biggest surprise," said FIM analyst Sanna Kaje.

Cargotec said April-June operating profit, excluding restructuring costs, leapt to $50.1 million from $4 million a year earlier.

Order intake rose 55 percent to $991.38 million while sales dropped some six percent to $864 million.

Earnings were driven by the performance of the firm's marine unit, where operating profit rose 88 percent to $59.18 million.