COVID-19 increases uncertainty for Cargotec

Cargotec has said the COVID-19 pandemic and the subsequent uncertainty has negatively affected its performance in 2020.

In its interim first quarter report, the company, which owns Kalmar and Navis among others, said the pandemic’s impact was evident on all business areas, especially in orders, but that its liquidity remained strong.

In total, it said its orders received had decreased by 24% and operating profit had fallen by 48% year-on-year (YoY).

The pandemic, which halted business operations in China at the end of last year and the beginning of this one, slowed activities across Cargotec’s divisions.

This is because as factories shut down, the components needed for Cargotec’s products became less readily available. As the pandemic spread to Europe and North America, Cargotec’s biggest markets, business slowed even more.

Cargotec’s CEO Mika Vehviläinen had this to say on how the company has responded to the crisis: “Our financial position is strong. As the coronavirus situation began to materialise, we prepared for the potential instability in the financing markets by drawing two-year bank loans in April from our correspondent banks with a total amount of 200 million euros.

“During the crisis, it has become clear that our strategic direction and will to promote intelligent cargo handling is the right one. Our service business is advancing, with main focus in increased data usage, device connectivity and remote maintenance issues – all things where we have made clear progress.

“In recent weeks, the interest in increasing efficiency through automation has become evident, and robotics and remote working in connection with port and terminal operations, for example, have materialised.

“We take the coronavirus pandemic seriously and health and security issues are the top priority in all of our actions. The exceptional situation has required adaptability and resilience from our stakeholders.

“Our common task is to keep the cargo flow moving, thereby helping globally to secure, for example, the deliveries of critical necessities. I would like to thank our employees, customers and partners for their efforts towards this important goal, even during these challenging circumstances.”
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