Cargotec cuts profit outlook, slashes more jobs
HELSINKI (Reuters) - Finnish cargo handling equipment maker Cargotec (CGCBV.HE) cut its full-year profit margin forecast on Monday, blaming higher costs and postponed orders, and said it planned to axe around 130 jobs in Sweden.
Cargotec said its operating profit margin for 2012 was expected to be around 5 percent, down from an earlier forecast of 6 percent.
The company also said it aimed to move some Swedish production to a unit in Poland, a shift that could result in 130 job cuts in Lidhult, Sweden.
The cuts come on top of plans, announced two weeks ago, to slash around 245 jobs, most of them in Finland.
Shares in the company were down 3.6 percent at 17.95 euros by 0940 GMT, although Swedbank analyst Erkki Vesola said the weaker outlook was not a big surprise.
"Looking at their profit margin in the first half of the year, the full-year guidance looked challenging in this kind of business environment," he said.
Cargotec has struggled to manage the costs of large port equipment orders and to pass the rising cost of steel-based components to customers, some of which have been delaying orders in a faltering global economy.
Earlier this month, the group demoted Mikael Makinen from chief executive to the head of the company's marine unit, which plans to list in Asia next year.
The firm said preliminary estimates showed a third-quarter operating profit margin of 4.9 percent on sales of 794 million euros ($1.03 billion). In the first half of the year, its operating profit was 4.8 percent of sales.
The firm is due to publish a full quarterly report on October 25.
($1 = 0.7712 euros)
(Editing by Louise Heavens and Mark Potter)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video