Cargotec's operating profit falls short of earlier estimates

According to Cargotec's preliminary results for 2008 operating profit will fall short of earlier estimates. The full year operating margin without the earlier announced restructuring costs will be approximately 5.7% (earlier estimate: at 1-9/08 level of 6.3%). This is due to Kalmar business area operating margin for the full year 2008 falling below 6%. 

Cargotec's 2008 sales will reach EUR 3.4 billion in line with the earlier guidance of approximately 13% growth. Orders received during the year amounted to EUR 3.8 billion. Cargotec will in the fourth quarter book some EUR 19 million of the earlier announced restructuring costs.

Kalmar operating profit in the fourth quarter is negatively affected by several issues uncovered at the year-end closing. These include inventory revaluations, additional provisions that need to be made for deliveries as well as earlier unforeseen costs realized in the fourth quarter. The earlier initiated actions to ensure more accurate and timely financial information in Kalmar continue. The work started in 2008 to develop corporate-wide financial reporting systems will be speeded up. Cargotec's restructuring continues as planned.

Source: Transportweekly