One is more – Cargotec Annual report 2011 During the year 2011, Cargotec showed again how we, as one company, created added value for our customers through our solutions, global presence and local service. Read more from the annual report at www.cargotec.com/annualreport
march 2012 | Print run 15,000
Cargotec Corporation Sörnäisten rantatie 23, P.O. Box 61 FI-00501 Helsinki, Finland Telephone: +358 20 777 4000 E-mail: communications@cargotec.com www.cargotec.com
One is
more www.cargotec.com
On land – in ports – at sea Cargotec improves the efficiency of cargo flows by offering solutions for loading and unloading goods on land and at sea – wherever cargo is on the move. Cargotec’s main daughter brands for cargo handling – Hiab, Kalmar and MacGregor – are global market leaders in their fields. Cargotec’s global network offers extensive services that ensure the continuous, reliable and sustainable performance of equipment.
Cargotec was formed in 2005 as the world-class competence and experience of Hiab, Kalmar and MacGregor were brought together. These unique Cargotec daughter brands are recognised leaders in cargo handling solutions around the world. As one unified Cargotec, we can now share our best practices and expertise while creating value for our customers even better than before.
Cargotec in brief
Our global coverage
is one of a kind. Our presence at the crossroads of the international flow of cargo means that we keep cargo on the move, everywhere in the world. Through the joint efforts of our three daughter brands – Hiab, Kalmar and MacGregor – we provide complete load and cargo handling solutions for customers who demand more. We pride ourselves in being able to offer local services to the most global customers, in all corners of the world.
1
¼
st
Cargotec is the world’s leading provider of cargo handling solutions.
120
countries
Cargotec operates in more than 120 countries around the globe.
100
years
The history of Cargotec’s oldest daughter brand, Kalmar, reaches back over a century.
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Cargotec moves every fourth container on the planet.
-50
°C
MacGregor equipment designed for the Arctic regions can operate even in the most extreme conditions.
km
Cargotec produces 6,000 hatch covers annually. Stacked on top of each other, they would reach a height of more than five kilometres.
3=1
Our three market-leading daughter brands – Hiab, Kalmar and MacGregor – form one unified Cargotec.
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Our strategy
The ability
to understand changes in market conditions and customer needs is the spirit behind our strategy. When Cargotec’s current strategy was refined, we outlined megatrends in the global economy that are estimated to have a major impact on the company’s future.
We understand that in a rapidly changing world, preparing a detailed five-year plan is not feasible. Instead, defining priorities is crucial, since these enable continued business development in line with the strategy. Four areas are prioritised in Cargotec’s strategy. These are customers, emerging markets, services and internal clarity. Customers A customer-driven approach as core of the company’s strategy Services A stronger emphasis on service development in line with the customers’ value chain Emerging markets Strength, particularly in emerging economic areas as mature markets show slower growth Internal clarity Enhanced efficiency and unity is accomplished through process development and working together
“To serve our customers better and understand what they really want, we need to see things from their perspective.” - Mikael Mäkinen, Cargotec President and CEO
Vision and values
Our vision
is to be the world’s leading provider of cargo handling solutions. We take pride in the work we have done, but we keep our eye steadily on the future and the changing needs of our customers. All of the aspects highlighted in this brochure lay the groundwork for the Cargotec vision – our way forward. Lead the development in the business and the industry
Set the standard for sustainability in cargo handling
Combine our strengths and resources into one company
Drive technology development for the benefit of our customers
Build the full potential of our services and solutions Invest in our people
Our core values
are the essence of Cargotec and communicate what this company is ultimately about. They are central in motivating personnel and building commitment.
Global presence – local service With employees from all backgrounds, and the widest worldwide service network in the industry, Cargotec is a truly global company. We are always ready to meet the challenges our customers may encounter, anywhere in the world.
Working together The unique combination of global presence and local service would not be possible without working together. In Cargotec, collaboration encompasses both internal processes and relationships with all our external stakeholders.
Sustainable performance Our commitment to sustainable business is present in everything we do. For our customers and other stakeholders, sustainable performance translates into reliability, high uptime, competitiveness and profitability.
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We share a common promise: we keep cargo on the move™
Cargotec solutions
Moving goods
is essential for keeping our society up and running. Every day, millions of items, from raw materials to consumer goods, are transported locally and between countries and continents. To ensure that cargo flows safely and efficiently, innovative and sustainable cargo handling solutions are vital. This is Cargotec’s expertise. Cargotec’s solutions are used in virtually all cargo flow hubs throughout the globe. Not only well-positioned to serve developed markets, Cargotec is also actively involved in responding to the cargo handling needs of emerging economies. Cargotec’s three daughter brands Hiab, Kalmar and MacGregor are all market leaders in their respective fields. They are recognised for their performance in cargo and load handling, on land and at sea – wherever cargo is on the move. Each covers an essential part of the delivery chain. From loading and distributing goods by road, to ports and terminals where cargo is handled, all the way onto ships or offshore platforms, where safe and reliable systems are essential.
Hiab
Inland transport and distribution
Industry
Hiab solutions move goods and materials by road and within worksites for a variety of industries ranging from forestry, waste handling and recycling to infrastructure, fire fighting and defence. Loader cranes, forestry and recycling cranes, demountable systems, tail lifts and truck-mounted forklifts are also part of the portfolio.
Kalmar
Ports & terminals
Kalmar solutions are trusted in ports and terminal operations, distribution centres and heavy industry worldwide. Our offering includes ship-toshore cranes, yard cranes, shuttle and straddle carriers, reachstackers, terminal tractors as well as equipment for empty container handling. Forklift trucks and log stackers for the wood and paper industry can also be found in Cargotec’s portfolio of Kalmar products.
MacGregor
Offshore logistics
Merchant shipping
MacGregor solutions are utilised in the maritime transportation and offshore industries, where the safe and reliable operation of cranes, hatch covers, RoRo and cargo lashing equipment as well as bulk handling and offshore load handling systems, is essential. Additionally, MacGregor cargo access equipment is available for naval logistics vessels. For ports and terminals, Cargotec delivers MacGregor linkspans and Siwertell bulk handling equipment.
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Cargotec in everyday life
Containers travelling
from one country to another are vital elements of global trade flows. Not to mention every fourth container on our planet is moved with Cargotec equipment at some point on its journey. Our three market-leading brands are present at all main junctions of the worldwide logistics network. We know what it takes for a wheel of cheese to travel all the way from the factory to your dining table. In fact, we help make it possible.
7.15 a.m., Parma, Italy The morning sun has barely touched the treetops when the workers at a traditional Parmesan cheesery get ready for a busy day. Today, many shipments are prepared to be sent to cheese lovers all around the world. The perfectly matured and carefully packaged Parmesan is now ready to be lifted onboard a delivery truck by a Hiab Moffett truck-mounted forklift.
Starting the journey Heavy weights are no challenge for a Moffett. Thus the driver has nothing to worry about. He knows Cargotec has extensive experience in building quality load handling solutions, such as loader cranes, demountables, and cranes used in forestry and recycling. After carefully setting down the valuable cargo, the driver and his trusted Moffett are ready to send the delivery truck, and its container filled with Parmesan, towards the nearest port where it has a ship to catch.
Sailing north The container terminal in Livorno is a city of its own. Busy Kalmar straddle carriers are piling up containers in perfectly ordered stacks. With a couple of fine-tuned maneuvers, a straddle carrier lifts the standard-sized container from the back of the cheese delivery truck. Soon after, a Kalmar ship-to-shore crane takes over and places the container on the deck of a cargo vessel. It is time to say goodbye to Italy.
After a quick stop at a wholesaler’s, the Parmesan is ready for another trip: a shopkeeper from a food market in the city centre has placed his order. Some Parmesan will soon be taken to the market by a local delivery company. As the driver arrives at her destination, Cargotec’s Zepro taillift attached to the back of the truck helps unload the cheese. It is an industry standard piece of equipment widely used all around the world. With the help of Cargotec equipment, the cheese is at last ready for purchase.
The precious cargo remains stable even when the going gets rough
It is no easy job to sail across the entire Mediterranean, around Gibraltar and through the heavy swells of the Atlantic. In harsh weather conditions, it is essential to be able to secure the safe journey of cargo. Cargotec’s MacGregor marine solutions are ideal for a number of sea operations. With our enormous hatch covers and first-class lashing bars and twist locks, the precious cargo remains stable, even when the going gets rough.
A taste of the sun After a week at sea, the Parmesan cheese has finally arrived in Finland. In the Port of Helsinki, world-class Kalmar equipment is again used to unload the cargo.
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Cargo enablers
Our people
keep cargo on the move. Forming a worldwide network of 11,000 professionals, they are dedicated to delivering service of the highest standards, meeting and exceeding customer expectations. And Cargotec is dedicated to continuously developing, encouraging and motivating its personnel.
As one company, we are better equipped to coordinate our human resource initiatives and practices. We are able to bring the work of our cargo enablers to where it counts, near the customer. This combination of global presence and local service is one of the most important advantages of a unified Cargotec. By operating as one company we can ensure that sustainable business principles are prioritised in all our operations and customer relationships. Our global market leadership requires that we attract and retain superior talent. To this end, Cargotec offers its employees vast, global opportunities, professional development, motivating incentive systems, training programmes and a stimulating work environment in a company at the top of its field. Building successful employment relationships starts with recruitment. We strive to attract the best people and focus on taking care of them by ensuring they have a healthy and safe workplace as well as opportunities for growth.
Angel Yang Supervisor, Spares Sales, Marine Service, Shanghai, China “China is a huge market and competition is tough. Working together with other Cargotec units helps maintain the high quality of our products, while our customers get firstclass service.” Dushyant Puthran Service Engineer, Dubai, United Arab Emirates “A strong working community helps Cargotec meet demands placed on quality, costs, equipment deliveries and responses to service requests.” Eduardo Calejero Vice President, After Sales Technical Support, Truck-Mounted Equipment division, Zaragoza, Spain “Our job offers us the opportunity to become better acquainted with customers, market areas, assembly units or design engineering departments through close cooperation.”
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Sustainable business
Sustainability
is a foundation for everything we do. It means actively promoting work place health and safety as well as caring for the environment around us. Although the impacts of Cargotec’s own operations on the environment are relatively small, we are constantly making efforts to improve our environmental performance. Cargotec is also contributing to reducing its customers’ carbon footprint by providing user training and developing industry-leading solutions in energy efficiency.
Managing the sustainability of our business is based on certified environmental, quality and occupational health and safety systems as well as our own key performance indicator monitoring.
The Polish factory
Pro Future ™
Studying hatch covers
An integrated operating system built for Cargotec’s newest multi-assembly unit in Poland helps ensure the continuous execution and development of quality, environmental and occupational health and safety measures. Recently, the operating system was awarded by an external auditor a certificate for compliance with the ISO 9001, ISO 14001 and OHSAS 18001 standards. In Cargotec’s history, this is the first certification of an operating system for compliance with three standards.
The Pro Future™ concept is applied to Cargotec products that meet stringent criteria on energy efficiency, emissions and recyclability. Fulfilment and compliance with these criteria also help Cargotec to achieve its goals as an invited member of the worldwide Clinton Global Initiative. The Pro Future™ label allows customers to choose a more ecological alternative. The ultimate goal is to award the label to all Cargotec equipment.
Recently Cargotec’s Marine business area conducted a study in cooperation with Lappeenranta University of Technology, Finland, to assess the overall life cycle impact of hatch covers. It was discovered that over a hatch cover’s life cycle, the majority of environmental impacts are generated in processes fully beyond Cargotec’s control. In the design of new customer solutions it is therefore reasonable for Cargotec to focus on promoting the safety of cargo transportation and vessel personnel in particular.
Research & development
Certified cargotec units Kalmar electric forklifts have been granted the Pro Future™ marking due to reaching a zero emission level, whilst remaining productive and cost-effective.
The work
to provide existing and potential customers the best solutions on the market starts with research and development (R&D). Engineers in our R&D centres around the world are committed to customer collaboration. It is through this close partnership that we are able to find solutions that are tailored to our customers’ needs. Cargotec has made determined investments in technology research, with a focus on energy efficient and safe solutions as well as the latest information and communications technologies.
Making cranes safer
Life-like simulator training
Cargotec has developed several new safety features for Hiab cranes to comply with the European Union’s Machinery Directive (2006/42/EC) and the more detailed loader crane standard (EN12999:2009). One of the most prominent new innovations is variable stability limit (VSL). This feature controls the cranes stability by optimising the functioning of the support legs.
Cargotec has recently completed a simulator for providing realistic training for operators of offshore load handling equipment. Now operators can gain experience in different situations equivalent to that provided by weeks of more traditional training methods. Built inside a standard-sized container, the simulator can be flexibly moved to the customer’s premises as well.
Port of Hamburg automation project
Innovative services
In a unique project, Cargotec is providing Germany’s busiest terminal, the Container Terminal Burchardkai in the Port of Hamburg, with 24 Kalmar automatic stacking cranes and highly customised control and automation systems.
Cargotec has a strong focus on developing a comprehensive range of services that help our customers to manage their maintenance operations as well as increase productivity, efficiency and machine lifespan. Recently, Cargotec launched the EcoService concept that focuses on service solutions with both economical and ecological benefits for the customer.
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Key figures
Our Success
is a sum of many things. Cargotec’s size and dedication make us a reliable business partner. Anywhere in the world, we are able to provide service based on the same solid quality principles. We take pride in our ability to offer stable, long-term commitment in all our customer relationships. Our unparalleled supply chain is evident in the geographical distribution of our order book. Cargotec receives orders from all over the world – and from an everincreasing number of locations. Cargotec is a forerunner in technology, offering its customers solutions utilising our cutting-edge technological competence. Recently, especially automation, intelligent solutions and energy efficiency have been criteria upon which our customers have based their order decisions.
Cargotec’s financial targets • Annual sales growth exceeding 10 percent (including acquisitions) • Raising the operating profit margin to 10 percent • Gearing below 50 percent (over the cycle) • Dividend 30–50 percent of earnings per share Cargotec’s financial targets were reconfirmed based on the strategy in September 2010. The financial targets reflect the growth expectations of Cargotec’s industry as well as actions that have been implemented or that will be implemented by the company.
Sales by market area Cargotec has a firm foothold in Europe and North America and a growing presence in emerging markets. In the past years, emerging markets have become increasingly important for Cargotec. Europe, Middle East and Africa 40% | Asia-Pacific 39% | Americas 21%
Key figures 2011
2010
2009
Orders received (EUR million)
3,233
2,729
1,828
Order book (EUR million)
2,426
2,356
2,149
Sales (EUR million)
3,139
2,575
2,581
Operating profit (EUR million)
207.0
131.4
0.3
Emerging markets have become increasingly important for Cargotec
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