Cargotec’s Board of Directors’ has decided to refocus on its profitable core businesses Hiab, Kalmar Mobile Solutions and Kalmar’s horizontal transportation business. Its vision and breakthrough objectives on sustainability and profitable growth remain.
“This strategic direction and the refocusing of Cargotec demonstrate our commitment to profitable growth, sustainability and the excellence of our people adapting to new challenges. The board is convinced that it is the right time to ensure an accelerated but orderly transition to an even more profitable and futureproof business,” said Ilkka Herlin, chair of the Board, Cargotec.
The company has announced it will ‘initiate an evaluation of strategic options of MacGregor’, sustainable maritime cargo and load handling solutions, including a potential sale of the business. The evaluation covers the whole business area inclusive of its merchant, offshore and services businesses.
Cargotec will also shift Kalmar’s focus towards mobile solutions and will start planning an exit from the heavy port cranes business. Going forward, Kalmar would offer industry shaping, eco-efficient cargo handling equipment and lifecycle services in the mobile equipment product categories, straddle and shuttle carriers as well as Bromma spreaders.
Hiab a provider of on-road load handling equipment, intelligent services, smart and connected solutions, will be at the core of Cargotec’s strategy. Hiab’s business portfolio will remain the same, but Cargotec plans to further accelerate the development of Hiab’s M&A pipeline.
In addition to the planned actions, Cargotec plans to review its operational model to support the refocused group. Cargotec’s capital allocation priorities for the upcoming 12 months are planned to be an acceleration of M&A, research and development investments in electrification, robotics and digitalisation and Cargotec’s climate programme Mission Climate.
These planned actions are subject to normal local legal requirements and works council consultations.
Cargotec’s Core Businesses will support customers with lifecycle services as well as with market leading equipment and technologies. Automated, robotized and zero emission equipment help Kalmar and Hiab customers to overcome sustainability challenges.
“Cargotec refined its strategy in April 2021 with sustainability and profitable growth as breakthrough objectives. Our vision remains, but we will further focus our businesses. That would enable us to accelerate M&A and R&D investments in our profitable core and I’m confident with our refocused strategic direction we will be well positioned to capture growth in industry trends of electrification, automation and digitalisation,” added Mika Vehviläinen, CEO, Cargotec.
“With this planned balanced portfolio we will support our customers with lifecycle services as well as market leading equipment and technology in our profitable Core Businesses Hiab and refocused Kalmar. These are recurring businesses with already above 10% comparable operating profit margins. The markets are structurally attractive and we hold leading market positions there. We are now planning to exit or evaluate strategic options for the project businesses where we have been less successful.”
Cargotec will hold an online meeting today (March 30) to discuss its announcement. The event will consist of a presentation held by Cargotec’s CEO Mika Vehviläinen followed by a Q&A session hosted by CEO Mika Vehviläinen and CFO Mikko Puolakka.
The event can be viewed as a live webcast at
https://cargotec.videosync.fi/2022-march-webcast
