Cargotec to relocate and retrench

Cargotec to relocate and retrench

Operating profit margins for 2012 are expected to be approximately 5% excluding non-recurring costs. Sales are still expected to grow from 2011. Earlier guidance was for sales to grow from 2011 and the operating profit margin to be approximately 6%.

According to preliminary results, Cargotec\’s Q3 order intake was EUR 719m, sales EUR 794m and operating profit margin 4.9&t. Cargotec will report its Q3 results on October 25, 2012.
Cargotec has started measures to improve its operating profit and they are expected to result in non-recurring restructuring costs during Q4. The exact amount of the restructuring costs will be specified after the ongoing employee cooperation negotiations have been concluded.

One immediate measure has been the long anticipated announcement that Cargotec plans to centralise its reachstacker and empty container handler production in Europe to its multi-assembly unit Stargard Szczecinski, Poland.

Reachstacker and empty container handlers are currently assembled at Lidhult in Sweden, which is planned to focus on forklift trucks\’ production in future. Cargotec has already begun negotiations on possible personnel reductions in Lidhult and initial estimates are that the measures could result in the reduction of approximately 130 employees in Lidhult.

The good news
It is not all bad news for Cartgotec though and the good news is that Brazilian container terminals Tecon Salvador and Tecon Rio Grande both part of the Wilson Sons Group, are integrating the SmartLanes process automation solution for gate automation. SmartLanes is part of the SmartPort concept.

Cargotec will provide SmartLanes, consisting of an Automated Gate System (AGS) and Rail OCR system featuring OCR portals, driver kiosks and barrier gates to manage a multi staged automated gate. As part of the system the required data will be collected and transmitted to a host/gate system. The AGS automatically captures the container numbers, truck license plates, chassis plates and driver identification of all inbound and outbound transactions.

Cargotec is responsible for both the project delivery and the ongoing maintenance and support.

Wilson Sons has been working relationship with Navis since 1999 which has led to the order for Cargotec SmartPort not least because of the ease of future integration with the Navis SN4 TOS.