Cargotec as an investment

Business environment (from Cargotec's financial statements review 2023, 1 February 2024)

The business environment in which Cargotec operates is complex, stemming from high interest rates and inflation, possible interruptions in supply chains, growing geopolitical tensions, and sluggish growth estimates. However, many of our customers and partners are performing well.

According to the World Bank’s Global Economic Prospects report published in January 2024, the global economy grew by 2.6 percent in 2023, and is projected to slow to 2.4 percent in 2024. In the World Bank’s advanced economies group (a group of countries which includes several key Cargotec markets, such as the United States, the United Kingdom and Germany), the World Bank estimates a 1.5 percent growth in 2023 and projects a 1.2 percent growth in 2024. According to the report, the slowing down of global growth reflects the effects of tight monetary policy, restrictive financial conditions, and feeble global trade and investment. A possible escalation of the recent conflict in the Middle East and associated commodity market disruptions, financial stress amid elevated debt and high borrowing costs, persistent inflation, and climate-related disasters add to the uncertainty.¹

The demand for MacGregor’s cargo and load handling solutions is impacted by the level of merchant ship contracting, which by the end of 2023 amounted to 1,632² (2022: 1,286³). In the offshore sector, the number of new contracts was 122² (137³). In 2024, the number of new merchant vessel orders is projected to be 1,577, and in the offshore sector 204⁴.

1) World Bank: Global Economic Prospects report, January 2024
2) Clarksons Research, January 2024
3) Clarksons Research, January 2023, excluding late registrations
4) Clarksons Research, September 2023