Our businesses:


Cargotec as an investment

Why invest in Cargotec

Cargotec has refocused its strategy for higher financial performance. Cargotec will focus on  sustainability and growth in profitable core businesses Hiab, Kalmar Mobile Solutions and Kalmar’s horizontal transportation business. Read more.

We are a technology leader with strong market positions in all our business areas. Several megatrends support our businesses, ensuring our future growth potential. Our strategy breakthrough objectives are sustainability and profitable growth.

Operating environment

Demand for Cargotec's products and services is based on world trade and cargo handling needs in land and sea transportation. Our primary market drivers include:

  • world trade development and global gross domestic product (GDP)
  • world seaborne trade and ship building
  • global offshore exploration and production spending
  • container traffic and investments in ports and terminals, and
  • construction industry activity and truck registrations in Europe.

Well diversified geographical sales mix

Container throughput (Driver for Kalmar)

Construction output (Driver for Hiab)

Merchant shipping and offshore markets (Drivers for MacGregor) 

Short term risks and uncertainties

Source: Cargotec’s January-June 2022 half-year report. The text is updated quarterly.

Developments in the global economy and cargo flows have a direct effect on Cargotec’s operating environment and customers’ willingness to invest. Changes in the global economy and supply chains, geopolitical tensions, energy availability, sanctions and trade wars can have an impact on global flow of goods and therefore on the demand of Cargotec’s solutions.

Russia’s condemnable and unjustified attack on Ukraine and the Western countermeasures against Russia have exacerbated the existing and created new market disruptions. Disruptions in supply chains, problems with the availability of raw materials and energy, accelerating inflation, weakened consumer confidence, as well as increased uncertainty are slowing down economic growth and could lead to recession. As the crisis continues, its effects can become more widespread.

The current situation has hampered Cargotec's operations. Problems with the availability of raw materials and components, as well as logistics, have slowed down our assembly operations and may cause production downtime if the situation worsens. The extension of delivery times has had a negative effect on Cargotec's net sales and gross margin. Due to new availability problems, prices have continued to rise, increasing the challenges to control costs and passing them on to the prices of end products. Interest rates are also expected to continue to rise.

Cargotec's sales to Russia, Belarus and Ukraine have been low. In 2021, approximately one percent of Cargotec's net sales and order backlog came from sales to these countries. Cargotec’s equipment and spare parts are not sold to Russia, and Cargotec complies with the sanctions imposed on Russia. At the end of June, Cargotec employed approximately 50 people in Russia. Cargotec does not have a direct representation in Ukraine; however, some of our suppliers have used Ukrainian steel, among others. To replace this can be difficult in the short term.

The Covid-19 pandemic can have direct and indirect impacts on Cargotec’s business. In some areas, such as in China, safety measures and travel restrictions may limit Cargotec's business prerequisites, hamper the selling, operating and delivering of Cargotec's solutions, and complicate the global component shortage. Ensuring a safe working environment for Cargotec personnel may be challenging. The amount of personnel sick leaves may also increase.

In a changing market situation, customers may also try to postpone or cancel orders. Deterioration of the global economic outlook and access to finance can lead to economic and financial difficulties among Cargotec’s customers. In some cases their financial position may deteriorate significantly or even lead to insolvency. The turnover, availability, and cost of skilled personnel can create disturbances to Cargotec and its supplier operations.

Container traffic growth rate and a possible slowdown or contraction in global economic growth may in the longer term have an effect on the demand of Kalmar's cargo handling solutions. Kalmar’s project executions face risks related to schedule, cost and delivery guarantees.

Hiab’s demand is impacted by the development of the construction market. The rising prices and availability challenges of building materials can have a negative effect on construction activity, which in turn can negatively impact the demand for Hiab's solutions. A significant share of Hiab’s orders are from the United States. Even though the cash flows are hedged for the existing order book, the weakening of the US dollar could in the longer term weaken Hiab’s results. Similarly, a stronger dollar can improve Hiab’s results. The Hiab solutions are installed on trucks, and the truck delivery bottlenecks can have a negative impact on Hiab's sales development.

MacGregor's market development is affected by the tightening emission regulation for ships and related uncertainty. The increases in the new vessel construction costs as well as the high amounts of order bookings at shipyards may slow down new vessel orders. Global decarbonisation targets have led to a fall in investments by the oil industry, which has long been reflected in decreased offshore vessel investments. However, increase in contracting for wind turbine installations and service vessels is estimated to partly compensate that in the future. Project executions face risks related to schedule, cost and delivery guarantees, especially those related to new product developments. Downward revision of market estimates or rising interest rates could result in an impairment of MacGregor's goodwill.

In March 2022, Cargotec announced its refocused strategy. As part of the strategy, Cargotec plans to exit from Kalmar’s heavy port cranes business, evaluate strategic options of MacGregor, and review its operational model. The valuation of evaluated businesses may include risks. The planned actions can also include risks related to the retention of skilled personnel, customer relationships, the execution of potential transactions, and costs, for example.

Cargotec is involved in certain legal disputes and trials. The interpretation of international agreements and legislation may weaken the predictability of the end results of legal disputes and trials.

Risks regarding Cargotec’s acquisitions are related to, for example, the knowledge of the local markets, authority processes, customers, corporate culture, integration, costs, achieving targets, as well as key employees.

Information security risks are also materially related to Cargotec’s operations. A cyber attack on systems that are critical to the operations of the company, its customers or suppliers can disrupt operational stability, lead to a decrease in sales and damage Cargotec’s reputation, for example.

There are also ethical risks related to the industries and the geographical scope where Cargotec operates. Cargotec has increased actions to ensure compliance with its business guidelines, regulations and ethical principles. Related internal processes are constantly being developed.

More information on risks is available at, under Investors > Governance > Internal control and risk management.

What do you think of the site?