HELSINKI (Reuters) - Finnish cargo-handling equipment maker Cargotec (CGCBV.HE) cut full-year guidance due to weakness in its terminals segment where it will take action to improve profitability, and said it still expected group sales to rise in 2012.
Cargotec said on Tuesday it expected a 2012 operating profit margin of around 6 percent, compared with guidance it gave in April that it would better the 6.6 percent reached in 2011.
Analysts had expected a 6.5 percent margin this year, according to Thomson Reuters Smart Estimates.
Cargotec said it aimed to improve profitability in terminals and load-handling segments, which make straddle carriers and cranes that move containers at ports.
Pohjola analyst Pekka Spolander said Cargotec’s problems were less about global economic uncertainty and more about its inability to manage costs.
Cargotec shares were down 11 percent at 18.20 euros by 6 a.m. EDT. In the past year the stock has lost 38 percent of its value. “Markets do not believe in forecasts by analysts or the company,” analyst Jari Harjunpaa from Ohman said.
The company has around 10,000 employees. After the previous global downturn in 2008, it cut 2,000 jobs.
Reporting by Terhi Kinnunen; Editing by Dan Lalor