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Cargotec as an investment

Why invest in Cargotec?

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Cargotec is a technology leader with strong market positions in all our business areas Kalmar, Hiab and MacGregor. We have leading brands in markets with long term growth potential. Several megatrends support our businesses.

Our strategy breakthrough objectives are sustainability and profitable growth. Our vision is to become the global leader in sustainable cargo flow.

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 half year report January–June 2021. 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, political uncertainty and trade wars could have an impact on global flow of goods and therefore on the demand of Cargotec’s solutions.

The covid-19 pandemic can still have direct and indirect impacts on Cargotec’s business. Safety measures and travel restrictions in accordance with government regulations may continue to limit Cargotec's business prerequisites, as well as selling, operating and delivering Cargotec's solutions. Ensuring a safe working environment for Cargotec personnel may still be challenging and limit the operating conditions of service personnel, for example.

The ongoing strong economic recovery has pushed up the prices for transportation, components and materials, and even caused shortages of them. If the situation persists, elevated price levels, component shortages, and disruptions in the logistics chain may increase inventory values, weaken cash flow, cause delays to deliveries, and create additional costs. Furthermore, announced stimulus programmes can turn interest rates and inflation upwards. Due to the size of the stimulus programmes, price and inflationary effects may be significant in the future. Despite the active measures taken, the availability of skilled personnel can also pose challenges to Cargotec and its suppliers.

A slowdown or contraction in global economic growth may in the longer term lower the container traffic growth rate, which affects demand and deliveries for Kalmar's cargo handling solutions. Project executions face risks related to schedule, cost and delivery guarantees. Furthermore, potential bottlenecks in the supply chain could postpone deliveries and have a negative impact on sales and results. Possible restructurings in supply chains can incur significant costs.

Hiab’s demand is impacted by the development of the construction market. 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 in the longer term could weaken Hiab’s results. Similarly, a stronger dollar could strengthen Hiab’s results.

MacGregor's market situation still involves uncertainties, even though demand in the merchant ship market has picked up during the recent months. In the short term, the tightening emission regulation for ships and related uncertainty may limit new investments. The uncertainty regarding oil price development and 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, contracting for wind turbine installations and service vessels is expected to partly compensate that in the future. The uncertain situation prevails in the merchant ship and offshore vessel market, which can have a negative impact on the financial situation of shipyards, ship owners, and ship operators. Market downturn could result in an impairment of MacGregor's goodwill.

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.

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 customers. In some cases their financial position may deteriorate significantly or even lead to insolvency.

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.

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.

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