Highlights 2011

In 2011, orders continued to grow, despite the prevailing economic uncertainty. Very good results in our Marine business area were largely achieved thanks to solid business in the merchant shipping segment and the large number of cargo equipment delivered for bulk vessels. Our Industrial & Terminal business area received important orders globally. The main markets for load handling solutions were marked by strong activity, aside from US-based construction. Higher demand for container handling equipment in harbours reflected the higher number of containers handled in ports during the year.

Key figures

		2011	2010	2009	2008	2007
Orders received	MEUR	3,233	2,729	1,828	3,769	4,106
Order book	MEUR	2,426	2,356	2,149	3,054	2,865
Sales	MEUR	3,139	2,575	2,581	3,399	3,018
Operating profit	MEUR	207.0	131.4	0.3	173.7	203.1
Operating profit from operations*	MEUR	207.0	141.9	61.3	192.8	221.1
Net income for the period	MEUR	149.3	78.0	7.1	120.8	138.4
Return on equity	%	13.3	8.0	0.8	13.7	15.6
Return on capital employed	%	13.3	8.6	0.2	12.7	16.8
Gearing	%	25.4	16.0	38.0	55.3	36.3
*Excludes non-recurring items

Investments in attractive customer segments

Cargotec took several steps towards enhancing customer focus and creating value in attractive customer segments. To support its customer-focused strategy, Cargotec acquired Navis, a US-based terminal operating systems (TOS) provider, in early 2011. The acquisition combines Navis' flexible and scalable TOS software with Cargotec's leading automation solutions for container handling equipment.

In June, Cargotec announced the opening of its competence centre in Singapore which, in cooperation with the technology and competence centre in Tampere, Finland, focuses on developing automation systems for terminals.

Major orders in port automation

Cargotec’s efforts in port automation began to bear fruit as the company won two major port automation contracts during the year. At the beginning of October, DP World chose Cargotec as its partner for the London Gateway port automation project. Another large port automation order from TraPac, Inc. in Los Angeles, USA, was also announced.

Strengthening foothold in emerging markets

Emerging markets continued to grow in significance. China and South Korea are the leading shipbuilding countries, accounting for most newbuilding capacity, and Cargotec’s MacGregor solutions have a strong market share in these countries. One of 2011’s order highlights from China consisted of over a hundred MacGregor cargo cranes for bulk carriers.

In July, Cargotec unveiled plans to establish a joint venture with Jiangsu Rainbow Heavy Industries Co., Ltd. in China to provide leading heavy crane solutions globally.

Strong commitment to sustainability

Cargotec ’s commitment to sustainable operations was further strengthened by re-evaluating the Pro Future™ criteria. Pro Future™ is the company’s label for products fulfilling a set of strict environmental criteria, taking account of environmental impacts on a larger scale than previously. A new product, Hiab Multilift XR18S – Pro Future™, a hooklift several hundred kilogrammes lighter than comparable products, was introduced. When used on a three-axle truck, a 30 percent reduction in both emissions and fuel consumption can be reached on an average.

Aligned processes strive for internal clarity

Cargotec continued to emphasise internal clarity and defined common quality, environment, health and safety (QEHS) policies and processes. The creation of Cargotec’s common business system platform is proceeding well and this work is aligned with the implementation of core processes. In addition, the company emphasised a common project culture with the implementation of the Cargotec project model.

Change of operating model to accelerate strategy implementation

In October, Cargotec announced that it would accelerate the implementation of its strategic initiatives by adapting a new operating model. At the beginning of 2012, the Industrial & Terminal business area was divided into two new business areas: Terminals and Load Handling.

Drive to understand customer needs

Cargotec’s offshore business and the local Japanese team received the Best Supplier 2010 award from the Mitsubishi Heavy Industries Shimonoseki shipyard in Japan. The award was received as recognition of the company's drive to understand future customer needs through the provision of an extensive geographic presence and strong collaboration with customers.

The International Bulk Journal's (IBJ) Safety in Bulk Handling award was granted to Cargotec‘s new Siwertell Sulphur Safety System designed to minimise the risk of explosions and detect fires when handling sulphur. In addition, Cargotec won the award of Container Handling Equipment Supplier of the year in the Second All-India Maritime and Logistics Awards (MALA) 2011 in India.

Highlights of the year also include the Port 2060 initiative that sparked discussion within the terminal operations sector about the challenges and solutions that will be relevant to containerisation as it approaches its centenary.