Kalmar Corporation has announced its details of its ‘driving excellence initiative’ targeting efficiency gains across its operations.
First launched in May 2024, as part of the demerger, Kalmar Corporation announced its strategy towards sustainable and profitable growth. The driving excellence initiative emphasises the importance of continuous improvement.
“Making continuous improvements across Kalmar is fundamental and a key enabler in our journey towards excellence and a service driven company. We will focus on profitable and sustainable growth. Commercial and operational excellence, competitiveness and unlocking shareholder value are our key priorities. We have a strong foundation and the right capabilities in place to further invest in sustainable innovations, growing services and driving excellence,” said Sami Niiranen, President/CEO, Kalmar.
The driving excellence initiative is a crucial step towards achieving Kalmar’s long-term performance targets. Detailed planning has advanced and Kalmar is planning to reach approximately EUR 50 million gross efficiency improvements by the end of 2026, in line with reaching the previously communicated 15% comparable operating profit margin target by 2028. These efficiency improvements enable enhanced investments in sustainable innovations and service growth.
The main measures are related to commercial and operational excellence actions that include active pricing management, supply chain and process optimisation and continuous focus on competitive operational cost-base and faster decision-making.
Kalmar has already made significant progress in implementing profitability improvement actions aimed at strengthening long-term competitiveness and is now focused on further profit generation and growth to leverage on its processes and best practices across the company. Most significant portfolio optimisation measures have been the exit decisions from the heavy cranes and the end-to-end automation businesses in 2022, which will be mainly completed during 2024.
These details do not change Kalmar’s previously announced profitability outlook, hence Kalmar reiterates its outlook published on 1 July 2024. The measures are part of Kalmar’s ongoing efforts to enhance commercial and operational effectiveness and are in line with Kalmar’s performance targets for 2028.
