2007-04-23 11:00:00 CEST

2007-04-23 11:00:00 CEST


REGULATED INFORMATION

English Finnish
Cargotec - Quarterly report

Cargotec's Interim Report for January-March 2007


- Orders received during the first quarter were record high
totaling EUR 915 (1-3/2006: 805) million.
- The order book grew due to the strong order intake and on March
31, 2007 totaled EUR 1,811 (December 31, 2006: 1,621) million.
- First quarter net sales grew by 13 percent and amounted to EUR
694 (1-3/2006: 614) million.
- Operating profit improved to EUR 57.9 (1-3/2006: 50.9) million.
- Cash flow from operating activities before financial items and
taxes totaled EUR 52.1 (1-3/2006: 40.6) million.
- Net income for the reporting period amounted to EUR 39.4
(1-3/2006: 33.9) million.
- Earnings per share were EUR 0.62 (1-3/2006: 0.52).
- General market activity is expected to remain healthy.
Development of the services business will continue during the year
in line with Cargotec's strategy. Following the record high order
intake in the first quarter Cargotec's full year 2007 order intake
is expected to surpass net sales. Net sales growth including
acquisitions is expected to clearly exceed 10 percent. Cargotec's
operating margin in 2007 is expected to be on the level of last
year's operating margin from operations before on-going growth and
efficiency related investments as well as purchase price
allocation treatment of acquisitions.

Cargotec's President and CEO Mikael Mäkinen:
”The amount of orders received during the first quarter is an
excellent achievement. The quarter profited from more big orders
than we had anticipated. Year 2007 is an important investment year
in order to achieve our strategic targets. During the beginning of
the year we have realized a sizeable number of important
acquisitions and, in line with our plans, initiated projects for
the further development of our services business and strengthening
of our knowledge base. These investments will affect operating
profit in the short-term but their positive impact will start to
materialize from next year.”




An analyst and press conference

An analyst and press conference (in Finnish) will be arranged on
Monday, April 23, 2007  at 2.00 p.m. Finnish time at Cargotec's
head office, Sörnäisten rantatie 23, Helsinki.
The interim report will be presented by Cargotec's Senior Executive Vice
President and CFO Kari Heinistö.


An international telephone conference for analysts and investors
will be held at 4.00 p.m.
Finnish time. The presentation material will be available on the
Company's internet pages by 2.00 p.m. Finnish time. 

The conference call phone numbers are the following:
+1 617 614 3946 (if calling from the U.S.)
+44 20 7365 8426 (if calling from rest of world)
Access code: Cargotec Corporation

The telephone conference can also be viewed as a live audio
webcast through the internet pages at www.cargotec.com starting at
4.00 p.m. Finnish time. The archived webcast will be available on
the internet pages later the same day.


Sender:
Cargotec Corporation

Kari Heinistö
Senior Executive Vice President and CFO

Eeva Mäkelä
SVP, Investor Relations and Communications

For further information, please contact:
Kari Heinistö, Senior Executive Vice President and CFO, tel. +358
204 55 4256
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358
204 55 4281


Cargotec is the world's leading provider of cargo handling
solutions whose products are used in the different stages of
material flow in ships, ports, terminals, distribution centers and
local transportation. Cargotec Corporation's brands, Hiab, Kalmar
and MacGREGOR, are market leaders in their fields and well-known
among customers all over the world. Cargotec's net sales are EUR
2.7 billion. The company employs approximately 9,000 people and
operates in close to 160 countries. Cargotec's class B shares are
quoted on the Helsinki Stock Exchange.

www.cargotec.com


Operating Environment

As a result of the good economic situation and increased truck
registrations in Europe demand for Hiab's load handling equipment
was strong. Severe winter storms in certain parts of Europe
boosted demand for forestry cranes and their spare parts. In North
America, particularly in the United States, the market for truck-
mounted forklifts used in building materials supply weakened year
on year, as expected. Although the fall in new truck registrations
eroded the demand for Hiab's tail lifts in the U.S., the market
for Hiab's loader cranes remained stable in North America. In Asia
Pacific, Hiab's load handling equipment markets remained buoyant.
Strong demand for scrap metal, especially in Japan, had a positive
impact on recycling crane markets. Demand for services provided by
Hiab continued to be high during the reporting period.

Healthy demand for Kalmar's container handling equipment continued
in Europe and Asia in the first quarter of 2007. In Europe, demand
was particularly buoyant for reachstackers. With
respect to heavy industrial equipment, demand for Kalmar's
products was lively, especially in Central Europe while demand
remained healthy in the Middle East. In the Americas, the markets
for heavy industrial and container handling equipment stabilized
as compared to late 2006. Demand for Kalmar's services remained
high. In all markets, the utilization rate of container handling
equipment was higher than in 2006, increasing demand for both
maintenance and repairs. Kalmar signed a large number of new
service contracts. Customers have increasingly continued to
outsource their services activities in order to cut costs,
increase their operational flexibility and ensure availability of
professional services.

Demand for MacGREGOR's marine cargo flow solutions remained
robust in January-March. Although demand for equipment used in
container ships leveled off somewhat during this period, increased
orders for other ship types boosted demand for MacGREGOR's
solutions. Bulk handling equipment demand grew in all geographical
areas. Ship cranes were in particularly high demand. Demand for
RoRo equipment used in Pure Car and Truck Carriers (PCTCs)
continued robust, and the company received both new and
continuation orders, particularly from Asia. Demand for
MacGREGOR's services remained stable.

Orders Received

Cargotec's order intake for January-March 2007 was extremely
healthy, with all business areas reporting a large number of
orders, totaling EUR 915 (1-3/2006: 805) million.


Orders received, MEUR             1-3/2007      1-3/2006      1-12/2006
Hiab                                   264           266            946
Kalmar                                 393           351          1,282
MacGREGOR                              259           188            684
Internal orders received                -1             0             -2
Total                                  915           805          2,910


Hiab

Of all the orders received, Hiab accounted for EUR 264 (1-3/2006:
266) million.

Hiab's orders received typically comprise many small orders. The
company received several orders from key customers in Europe and
the United States during the quarter and will deliver equipment
for both commercial use and the defence industry.

The orders secured by Hiab during the reporting period included
one for 30 demountable systems from Pakistan and an order for 45
forestry cranes for vehicles that will be delivered to Russia.
Furthermore, the company signed an agreement to deliver over 50
units of load handling equipment to Spain.

Kalmar

Of all the orders received, Kalmar accounted for EUR 393
(1-3/2006: 351) million.

In January, Kalmar received an order for 12 E-One RTGs (rubber-
tyred gantry cranes) from Santos Brasil S/A. The RTGs will be
delivered to the Port of Santos between September 2007 and January
2008 and they will be equipped with Kalmar Smartrail®, an
automatic steering and container position verification system.

In March, Kalmar received an order for 84 terminal tractors from
port operator DP World. The terminal tractors will be delivered
during the summer of 2007 to Jebel Ali port situated close to the
city of Dubai.

During the reporting period, Kalmar signed two long-term
agreements covering the rental, servicing and customer financing
of its equipment in Sweden. One of the agreements was concluded
with Setra Group, on the rental, maintenance and financing of 31
forklift trucks that Kalmar will deliver to Setra's 12 sawmills in
the spring of 2007. Furthermore, Kalmar signed a contract with
Wallhamn AB, Sweden's largest private port, for the lease of
several units of Kalmar container handling equipment. In the same
connection, the parties agreed on the maintenance of Kalmar and
other suppliers' equipment.

MacGREGOR

Of all the orders received, MacGREGOR accounted for EUR 259
(1-3/2006: 188) million.

In January, MacGREGOR received several orders for bulk handling
equipment that will be manufactured in Europe and China and
delivered to shipyards located in India, Asia and Europe during
2007-2008. The equipment to be delivered will be used to handle,
for example, cement, plaster, coal and limestone. The orders
received included bulk handling equipment for offshore support
vessels.

In February, MacGREGOR signed an agreement to deliver port
equipment, such as linkspans and passenger gangways, for the
Norwegian ship owner, Color Line. The equipment will be delivered
in 2007-2008 for ferry service between Norway and Denmark.

In February, MacGREGOR also received a significant hatch cover
order for four container ships under construction at Aker Yards
shipyards in Germany. The container ships will be delivered during
2008. They will transport nickel from Northern Siberia under
arctic conditions.

In March, MacGREGOR received several major RoRo access equipment
orders from major shipyards. The equipment will be delivered
during 2007-2009 for RoPax ferries and Pure Car and Truck Carriers
(PCTCs) under construction at Aker Yards shipyard in Germany,
Kyokuyo Shipyard Corporation's shipyard in Japan and
Brodogradilište Kraljevica dd's shipyard in Croatia.

MacGREGOR received a record number of ship crane orders in
January-March 2007 from various ship yards in China, Korea,
Poland, Romania and Croatia. The cranes will be delivered in
2007-2010. These orders have further increased MacGREGOR's market
share in ship cranes.

Order Book

Cargotec's order book totaled EUR 1,811 (December 31, 2006: 1,621)
million at the end of March 2007. The order book was further
lengthened from the strong year-end level due to the company's
record-high order intake. Of the order book, Hiab accounted for
EUR 237 (215) million, Kalmar EUR 651 (593) million, and MacGREGOR
EUR 923 (813) million. A considerable part of MacGREGOR's order
book will be delivered in 2008-2010.


Order book, MEUR                 31.3.2007     31.3.2006     31.12.2006
Hiab                                   237           226            215
Kalmar                                 651           587            593
MacGREGOR                              923           626            813
Internal order book                      0             0              0
Total                                1,811         1,439          1,621


Net Sales

Cargotec's net sales for January-March grew by 13 percent and
totaled EUR 694 (1-3/2006: 614) million. Approximately EUR 2
million of this growth was attributable to the net sales impact of
acquisitions made during this period. The impact on net sales from
the acquisitions completed in 2006 was approximately EUR 40
million. Hiab's net sales in the first quarter amounted to EUR 240
(1-3/2006: 230) million, Kalmar's net sales were EUR 324 (284)
million and MacGREGOR's net sales EUR 131 (101) million.

Sales, MEUR                       1-3/2007      1-3/2006      1-12/2006
Hiab                                   240           230            914 
Kalmar                                 324           284          1,203 
MacGREGOR                              131           101            482 
Internal sales                           0             0             -2 
Total                                  694           614          2,597

Cargotec's services revenue for January-March increased by 30
percent year on year. The strong growth reflects robust demand for
spare parts and maintenance contracts. In addition, the business
grew through acquisitions. Services revenue amounted to EUR 173
(1-3/2006: 132) million, representing 25 (22) percent of net
sales. It accounted for 15 (14) percent of net sales at Hiab, 29
(25) percent at Kalmar, and 32 (29) percent at MacGREGOR in
January-March.

Financial Result

Cargotec's operating profit for January-March 2007 was EUR 57.9
(1-3/2006: 50.9) million, representing 8.3 (8.3) percent
of net sales. Of this amount, Hiab accounted for EUR 24.3 (22.5)
million, Kalmar for EUR 26.8 (25.0) million, and MacGREGOR for EUR
10.6 (6.1) million. The operating profit includes a EUR 0.7 (0.4)
million cost impact from the purchase price allocation treatment of
acquisitions.

Net income for the period was EUR 39.4 (1-3/2006: 33.9) million
and earnings per share were EUR 0.62 (0.52).

Balance Sheet, Financing and Cash Flow

On March 31, 2007, Cargotec's net working capital amounted to EUR
228 (December 31, 2006: 209) million. Tangible assets on the
balance sheet were EUR 232 (218) million and intangible assets EUR
580 (581) million.

Cash flow from operating activities before financial items and
taxes for January-March 2007 totaled EUR 52.1 (1-3/2006: 40.6)
million.

Net debt on March 31, 2007 was EUR 180 (December 31, 2006: 107)
million. Total equity/total assets ratio was 40.7 (47.6) percent
while gearing was 21.3 (12.3) percent.

Cargotec had EUR 432 million committed credit facilities on March
31, 2007. These facilities were unused. The EUR 225 (USD 300)
million Private Placement placed in December 2006 with U.S.
institutional investors was funded in February 2007. 14 U.S.
institutional investors participated in the transaction. The
placement has been hedged through cross currency and interest rate
swaps into a fixed interest rate euro loan. Its interest rate
varies between 4.525 and 4.756 percent depending on the maturity,
which varies between 7 and 12 years.

New Products and Product Development

During the reporting period, Cargotec's research and product
development expenditure was EUR 11.1 (1-3/2006: 7.4) million,
representing 1.6 (1.2) percent of net sales.

In the first quarter, Hiab introduced a new folding type tail lift
especially for the UK and French markets. The tail lift requires
less loading space and is often used in smaller trucks. Hiab also
continued to launch new products in its XR demountable range. The
new XR 26S is developed to be used in 4- and 5-axles trucks, which
is a segment expected to grow considerably during the next few
years.

Kalmar continued the development of automated solutions during the
first quarter of the year. In March the first terminal tractors
using Remote Machine Interface system (RMI) developed by Kalmar were sold. 
Earlier the RMI system has been used in other Kalmar container 
handling equipment. The RMI system enables 
the efficient monitoring of equipment in the container yard and their
maintenance needs. Kalmar continues to develop automation
solutions for container location, operation and control systems
used for automatic stacking cranes (ASCs). The automation
solutions will be used, for example, in the Burchardkai container
terminal's container yard of HHLA, the biggest operator in the
Port of Hamburg.

MacGREGOR continued to develop its electric cargo handling
solutions, including electric ship cranes, ramps, car decks and
hatch covers. During the period MacGREGOR continued the
development process for the next generation of crane control
system, in addition to which fully automated container fittings
were launched.

Capital Expenditure

Cargotec's capital expenditure for January-March 2007, excluding
acquisitions and customer financing, totaled EUR 9.8 (1-3/2006:
8.1) million. Customer financing investments were EUR 5.3 (6.1)
million.

During the reporting period, Hiab opened a new unit in
Raisio, Finland, enabling the simultaneous assembly of up to 12
truck superstructures. This investment significantly cuts delivery
times and increases the unit's efficiency.

The first superstructure deliveries commenced in Bourg-en-Bresse,
France. The installation unit is located next to a Renault truck
factory.

An R&D investment program for loader cranes was initiated in
Hudiksvall, Sweden. This investment includes not only the
facilities but also the equipment needed for crane testing.

Kalmar reachstacker assembly facilities were expanded in Lidhult,
Sweden.

Acquisitions

Cargotec's strategy is based on growing both organically and
through acquisitions. Acquisitions enable to accelerate the
expansion into new markets and develop the existing services
network. During January-March 2007, Cargotec made eight
acquisitions and signed several cooperation agreements.

In February, Cargotec signed an agreement to acquire Indital
Construction Machinery Ltd. (Indital), a company based in
Bangalore, India. The acquisition creates manufacturing presence
in India for Cargotec and supports the growing sales activities of
all three of Cargotec's business areas. Indital produces container
reachstackers, heavy forklift trucks and mobile cranes used for
loading trucks (pick-and-carry). The company employs approximately
60 people and its net sales are approximately EUR 8 million. After
completion of the acquisition, which took place in April,
Cargotec's ownership in Indital is 95 percent.

Hiab's Acquisitions

During the first quarter of 2007, Hiab signed two acquisition
agreements. In January, Hiab signed an agreement of intent to
acquire the sales, service and installation operations of its
current distributor Berger in Czech Republic, Slovakia, Hungary
and Croatia. The operations consist of seven sales and
service/installation points and the net sales are approximately
EUR 16 million. The companies employ approximately 75 people. The
acquisition is expected to be finalized in May.

Hiab also made an agreement to acquire the majority of its
Australian importer, BG Crane Pty. Ltd., a leading distributor and
service provider for load handling customers in Australia. The
company employs approximately 100 people and had net sales of
approximately EUR 20 million in 2006. The acquisition was
finalized in February.


Kalmar's Acquisitions

In January, Kalmar signed agreements to acquire Tagros d.o.o., a
Slovenia-based service company, and Truck och Maskin i
Örnsköldsvik AB, a Swedish company. Tagros provides maintenance of
container handling equipment and industrial forklifts at the Port
of Koper in Slovenia. This acquisition enables Kalmar to build up
its service and sales activities in Slovenia and the Northern
Balkan Peninsula. In 2006, Tagros had net sales of approximately
EUR 2 million and employed approximately 35 people. The
acquisition was completed immediately after signing.

The Swedish company Truck och Maskin's sales and service
operations assist heavy industrial handling customers in Norrland,
the northern region of Sweden. Truck och Maskin strengthens
Kalmar's sales and service presence to industrial customers in the
wood handling segment. The company employs approximately 100
people and its annual sales in the fiscal year that ended on April
30, 2006 were approximately EUR 14 million. The acquisition was
finalized in February.

In February, Kalmar made an agreement to acquire the assets and
business of Port Equipment Service, Inc., a U.S. based

services company. The company employs 56 people, most of whom are
service technicians. The acquisition strengthens Kalmar's services
business in U.S. ports and intermodal terminals, particularly in
the East Coast of USA. The company's net sales for 2006 totaled
approximately EUR 4 million. The acquisition was finalized in
February.

Kalmar made an agreement in December 2006 to buy the majority of
the shares of its Spanish distributor Kalmar Espana S.A. The
acquisition was finalized in April 2007.

In December 2006, Kalmar made an agreement to acquire Italian CVS
Ferrari. The acquisition is still under competition authority
review.

MacGREGOR's Acquisitions

MacGREGOR expanded its operations into the growing offshore
segment with two acquisitions that complement each other both in
product portfolio and geographical presence.

In March, MacGREGOR signed an agreement to acquire the Norwegian
company Hydramarine AS. Hydramarine is the leading company in high-
end area of offshore and sub sea load handling systems for the
offshore vessel industry. The company focuses on the development
of hydraulic and electrical deck machinery equipment, especially
cranes, for ship owners, yards and operators. MacGREGOR acquired
90 percent of the company with the remainder being owned by the
employees. In 2006, Hydramarine had net sales of EUR 63 million
and employed approximately 150 people. The acquisition was
completed in April.

MacGREGOR continued to expand its offshore business by acquiring
the Singaporean company Plimsoll Corporation Pte Ltd. Plimsoll is
a leading company in deck machinery for the offshore oil and gas,
and marine industry in the Asia Pacific region. Its product range
includes winches and cranes for offshore and marine applications.
MacGREGOR will acquire 90 percent of the company with the
remainder being owned by the employees. In 2006, Plimsoll had net
sales of approximately EUR 43 million and employed approximately
500 people. The deal is expected to be closed by the end of April.

In March, MacGREGOR signed an agreement to establish a joint
venture with Vietnam Shipbuilding Industry Group (Vinashin)
located in Haiphong, Vietnam. MacGREGOR has a 49 percent
shareholding in the joint venture with Vinashin's stake standing
at 51 percent. The new joint venture, which will be named as
MacGREGOR Vinashin Marine Equipment Ltd, will concentrate on hatch
cover production to shipyards within Vietnam. The next phase will
include the production and assembly of ship cranes as well as the
production of RoRo equipment. Production is expected to start
within one year.

Personnel

On March 31, 2007, Cargotec had a total of 9,083 employees (March
31, 2006: 7,729), with Hiab accounting for 3,780 (3,471) persons,
Kalmar 4,041 (3,307) and MacGREGOR 1,203 (908).

Of Cargotec's total employees, 16 percent were located in Finland,
26 percent in Sweden, and 27 percent in the rest of Europe. North
and South American personnel represented 15 percent, Asia Pacific
15 percent, and the rest of the world 1 percent of total
employees.

Shares and Stock Options

On March 31, 2007, Cargotec's share capital totaled EUR
64,110,639. The share capital was increased during the reporting
period through stock options. On January 1, 2007, the share
capital was EUR 64,046,460. On March 31, 2007, the number of
Cargotec's listed class B shares totaled 54,584,550 while that of
its unlisted class A shares totaled 9,526,089. The remaining 2005A
and 2005B stock options may be used to subscribe for a total of
298,371 class B shares, thereby increasing the share capital by
EUR 298,371.

During January 1-March 31, 2007, the trading volume of Cargotec
class B shares totaled 17 million at a total value of
approximately EUR 792 million. The closing price for class B
shares on March 31, 2007 was EUR 45.21. The highest price during
the reporting period was EUR 49.60 and the lowest EUR 40.69. On
March 31, 2007, the market value of the company's class B shares
totaled EUR 2,436 million excluding the shares held by the
company. The market value of the share capital, in which the
unlisted class A shares were valued at the average price of the
class B shares on the last trading day, was EUR 2,866 million,
excluding the shares held by the company.

Cargotec's Financial Targets and Incentive Program for Key
Managers

In January, Cargotec published its new financial targets and a
share-based incentive program for the key managers for the years
2007-2011. The purpose of the program encouraging share ownership
is to align the interests of key managers to Cargotec's strategy
and financial targets as well as contribute to making them long-
term shareholders of the company. The incentive program covers
some 60 individuals. The program offers key managers a possibility
to earn a reward in Cargotec class B shares based on
accomplishment of set targets.

Cargotec's financial targets are the following: annual net sales
growth exceeding 10 percent (incl. acquisitions), raising the
operating profit margin to 10 percent, and maintaining the gearing
below 50 percent. The targets have been set for the years
2007-2011.

The incentive program consists of four earnings periods, of which
the first is two years and the following three periods one year
each. The Board of Directors decides on the target group of the
earnings period and their maximum reward at the beginning of each
earnings period.

Potential rewards from the incentive program during 2007-2011 are
based on achievement of five-year net sales and operating profit
targets as defined in Cargotec's strategy. The rewards will be
paid during 2009-2012 in both class B shares and cash. The cash
portion is dedicated  to cover possible taxes and tax-related
payments resulting from the reward. The shares distributed as
reward will contain a prohibition to hand over or sell the shares
within one year of the end of an earnings period with the
exception of the final earnings period when no prohibitions are
included. The maximum amount to be paid out as shares is 387,500
class B shares currently held by the company as treasury shares.

Decisions Taken at Cargotec Corporation's Annual General Meeting

Cargotec Corporation's Annual General Meeting was held on February
26, 2007 in Helsinki.  The meeting approved the financial
statements and consolidated financial statements. The meeting
granted discharge from liability to the President and CEO and the
members of the Board of Directors for the accounting period
January 1-December 31, 2006.

The Annual General Meeting approved the Board's proposal of a
dividend of EUR 0.99 for each of the 9,526,089 class A shares and
EUR 1.00 for the 53,815,646 outstanding class B shares.

The number of members of the Board of Directors was confirmed at
six according to the proposal of Cargotec's Nomination and
Compensation Committee. Carl-Gustaf Bergström, Henrik Ehrnrooth,
Tapio Hakakari, Ilkka Herlin, Peter Immonen and Karri Kaitue were
re-elected as members of the Board of Directors. The Chairman of
the Board's monthly remuneration was decided to be EUR 5,000. The
Deputy Chairman's monthly remuneration was decided to be EUR
3,500. Other Board members' remuneration was decided to be EUR
2,500. In addition, it was decided that members receive EUR 500
for attendance at Board and Committee meetings.

Authorized public accountants Johan Kronberg and
PricewaterhouseCoopers Oy were elected as auditors according to
the proposal of the Audit Committee of Cargotec Corporation's Board of
Directors.

Authorizations Granted by the Annual General Meeting

The Annual General Meeting authorized the Board of Directors of
Cargotec to decide to repurchase the Company's own shares with
assets distributable as profit. The shares may be repurchased in
order to develop the capital structure of the Company, finance or
carry out possible acquisitions, implement the Company's share-
based incentive plans, or to be transferred for other purposes or
to be cancelled.  The shares may be purchased through a private
offering as defined in Finnish Companies Act, Chapter 15 § 6.

Altogether no more than 6,400,000 own shares may be repurchased,
of which no more than 952,000 are class A shares and 5,448,000 are
class B shares. The above-mentioned amounts include the 704,725
class B shares already in the Company's possession. The maximum
amount corresponds to less than 10 percent of the share capital of
the Company and the total voting rights. The repurchase of shares
will decrease the non-restricted equity of the Company. This
authorization remains in effect for a period of 18 months
from the date of decision of the Annual General Meeting.

In addition, the Annual General Meeting authorized the Board of
Directors to decide on the distribution of any shares repurchased.
The Board of Directors is authorized to decide on the distribution
of a maximum of 952,000 class A shares and 5,448,000 class B
shares. The Board of Directors is authorized to decide to whom and
in which order the shares will be distributed. The Board of
Directors may decide on the distribution of repurchased shares
otherwise than in proportion to the existing pre-emptive right of
shareholders to purchase the Company's own shares. The shares may
be used as compensation in acquisitions and in other arrangements
as well as to implement the Company's share-based incentive plans
in the manner and to the extent decided by the Board of Directors.
The Board of Directors has also the right to decide on the
distribution of the shares in public trading at the Helsinki Stock
Exchange to be used as compensation in possible acquisitions. This
authorization remains in effect for a period of 18 months
from the date of decision of the Annual General Meeting.

Organization of the Board of Directors

In its organizing meeting Cargotec's Board of Directors elected
Ilkka Herlin to continue as Chairman of the Board and Henrik
Ehrnrooth to continue as Deputy Chairman. Cargotec's Senior
Executive Vice President and CFO Kari Heinistö continues to act as
secretary to the Board of Directors.

Cargotec's Board of Directors decided that the Audit Committee and
the Nomination and Compensation Committee will continue to assist in
its work. In addition, the Board decided to establish a third
committee. The Working Committee will monitor the Company's
financial situation, prepare strategic issues to be handled and
decided in the Board and review their implementation.

The Board of Directors re-elected among its members Ilkka Herlin,
Peter Immonen and Karri Kaitue as members of the Audit Committee.
Karri Kaitue was elected to continue as Chairman of the Audit
Committee. Board members Carl-Gustaf Bergström, Tapio Hakakari,
Ilkka Herlin and Peter Immonen were re-elected to the Nomination
and Compensation Committee. Ilkka Herlin was elected to continue
as chairman of the Nomination and Compensation Committee. Board
members Tapio Hakakari, Ilkka Herlin and Peter Immonen were
elected to the Working Committee. The Board elected Ilkka Herlin
as chairman of the Working Committee.

Share Repurchases

Cargotec's Board of Directors decided to exercise the
authorization of the Annual General Meeting to repurchase the
Company's own shares.

In accordance with the authorization the shares will be
repurchased in order to develop the capital structure of the
Company, finance or carry out possible acquisitions, implement the
Company's share-based incentive plans, or to be transferred for
other purposes or to be cancelled.

The maximum amount of repurchased own shares will be less than ten
percent of the Company's share capital and total voting rights.
This corresponds to a maximum of 6,400,000 shares so that a
maximum of 952,000 class A shares and 5,448,000 class B shares can
be repurchased.

Class B shares will be purchased at public trading in the Helsinki
Stock Exchange at the market price. Class A shares will be
purchased outside the Stock Exchange at the price equivalent to
the average price of class B shares paid in the Helsinki Stock
Exchange on the purchase date. Share repurchases will be released
on the transaction days through stock exchange announcements.

No shares were repurchased during the reporting period.

Short-term Risks and Uncertainties

Cargotec's principal short-term risks and uncertainties are
related to subcontracting, success of integrating recent
acquisitions, and U.S. construction industry development.

Cargotec has outsourced a significant proportion of its component
production and part of its assembly operations. In the current
economic boom, uncertainty of component availability is possible.
Cargotec strives to anticipate its component needs so that
subcontractors can flexibly meet demand.

The development of the U.S. construction industry affects demand for
Cargotec's load handling equipment. At present, load handling
equipment demand from the building materials supply industry is
clearly below the 2006 level. The market development remains
uncertain.

Cargotec has made a significant number of acquisitions during the
past 12 months. Although these acquisitions are relatively small
in size and geographically dispersed, integrations always involve
uncertainty factors.

Events After the Reporting Period

The acquisitions of Kalmar Espana, Indital and Hydramarine have
been finalized in April. In addition, an agreement has been made
to acquire the remaining minority in Kalmar Asia Pacific Ltd.

Hiab has on April 23, 2007 initiated plans to concentrate its
European truck-mounted forklift production to the Dundalk factory
in Ireland. Truck-mounted forklifts are produced in two factories
in Europe, in Dundalk, Ireland and Oude Leije, the Netherlands. As
part of creating a more competitive business structure Oude Leije
assembly operations are planned to be transformed into a technical
center serving European customers. The plans are
expected to clearly improve production efficiency and cost
competitiveness. The estimated personnel reduction is some 50
people.

Outlook

General market activity is expected to remain healthy. Development
of the services business will continue during the year in line
with Cargotec's strategy. Following the record high order intake
in the first quarter Cargotec's full year 2007 order intake is
expected to surpass net sales. Net sales growth including
acquisitions is expected to clearly exceed 10 percent. Cargotec's
operating margin in 2007 is expected to be on the level of last
year's operating margin from operations before on-going growth and
efficiency related investments as well as purchase price
allocation treatment of acquisitions.

Helsinki, April 23, 2007
Cargotec Corporation
Board of Directors

This interim report is unaudited.


CARGOTEC INTERIM REPORT JANUARY-MARCH 2007

CONDENSED CONSOLIDATED INCOME STATEMENT


MEUR                        1-3/2007       1-3/2006    1-12/2006  
Sales                          693.9          613.9      2,597.1 
Cost of goods sold            -538.1         -480.9     -2,042.7 
Gross profit                   155.8          133.0        554.4 
Gross profit, %                 22.5 %         21.7 %       21.3 %
Gain on the sale of                -              -         17.8 
property
Costs and expenses             -85.9          -72.3       -292.2 
Depreciation                   -12.0           -9.8        -40.5 
Operating profit                57.9           50.9        239.5 
Operating profit, %              8.3 %          8.3 %        9.2 %
Share of associated              0.1            0.4          0.9 
companies' income
Financing income and            -3.4           -2.9         -8.4 
expenses
Income before taxes             54.6           48.4        232.0 
Income before taxes, %           7.9 %          7.9 %        8.9 %
Taxes                          -15.2          -14.5        -65.9 
Net income for the period       39.4           33.9        166.1 
Net income for the period,       5.7 %          5.5 %        6.4 %
%
                                                            
Attributable to:                                            
Equity holders of the           39.4           33.4        163.9  
company
Minority interest                0.0            0.5          2.2  
Total                           39.4           33.9        166.1  
                                                             
Earnings per share for                                       
profit attributable
to equity holders of the                                     
company:
Basic earnings per share,       0.62            0.52         2.57 
EUR
Diluted earnings per share,     0.62            0.52         2.56 
EUR
Adjusted basic earnings per        -               -         2.37 *
share, EUR

* Excluding gain on the sale of property after taxes

CONDENSED CONSOLIDATED BALANCE SHEET

ASSETS                                                    
MEUR                       31.3.2007        31.3.2006   31.12.2006 
Non-current assets                                        
 Intangible assets             579.6            507.9        580.5
 Tangible assets               231.6            198.1        217.6
 Loans receivable and other      0.2              0.9          0.1
 interest-bearing assets (1
 Investments                     3.3              3.1          4.0
 Non-interest-bearing           59.1             53.0         58.6
 assets
Total non-current assets       873.8            763.0        860.8
                                                          
Current assets                                            
 Inventories                   562.6            499.7        528.9
 Loans receivable and other      0.2              0.3          0.3
 interest-bearing assets (1
 Accounts receivable and       521.9            439.7        473.7
 other non-interest-bearing
 assets
 Cash and cash equivalents     278.0             78.6        124.3
 (1
Total current assets         1,362.7          1,018.3      1,127.2
                                                          
Total assets                 2,236.5          1,781.3      1,988.0
                                                          
                                                          
EQUITY AND LIABILITIES                                    
MEUR                       31.3.2007        31.3.2006   31.12.2006 
Equity                                                    
 Shareholders' equity          834.7            754.3        868.8
 Minority interest               7.6              7.3          8.0
Total equity                   842.3            761.6        876.8
                                                          
Non-current liabilities                                   
 Loans (1                      423.5            194.4        195.0
 Deferred tax liabilities       27.0             18.8         30.5
 Provisions                     34.9             17.2         30.3
 Pension benefit and other      55.6             53.4         55.2
 non-interest-bearing  
 liabilities
Total non-current              541.0            283.8        311.0
liabilities
                                                          
Current liabilities                                       
 Loans (1                       34.5             40.3         37.2
 Provisions                     30.8             48.0         42.6
 Accounts payable and other    787.9            647.6        720.4
 non-interest-bearing
 liabilities
Total current liabilities      853.2            735.9        800.2
                                                          
Total equity and             2,236.5          1,781.3      1,988.0
liabilities

1) Included in interest-bearing net debt

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

            Attributable to the equity holders of the company              
                         
MEUR        Share   Share   Trea-   Trans-  Fair    Re-      Total  Mino- Total
          capital   pre-    sury    lation  value   tained          rity  equity
                    mium    shares  differ- reser-  earnings        inte- 
                    account          rences  ve                      rest
                
Equity on    63.9      95.1   -5.0     4.9   -10.3    611.4  760.0    7.2  767.2
31.12.2005                                              
Cash flow                                       6.0             6.0   -0.1  5.9 
hedges
Trans-                                -3.8                    -3.8   -0.3   -4.1
lation
differences
Total net       -         -      -    -3.8     6.0        -    2.2   -0.4    1.8
income
recognised
directly
in equity
Net                                                    33.4   33.4    0.5   33.9
income
for the
period
Total           -         -      -    -3.8     6.0     33.4   35.6    0.1   35.7
recognised
income
and
expenses
for the
period
Dividends                                              -41.3  -41.3       -41.3 
paid                                                
Equity on    63.9      95.1   -5.0     1.1    -4.3    603.5  754.3    7.3  761.6
31.3.2006                                              
                                                               
                                                               
Equity on    64.0      96.0  -23.9   -12.0    10.5    734.2  868.8    8.0  876.8
31.12.2006                                              
Gain/loss                                     -7.9            -7.9          -7.9
on cash
flow
hedges
booked to

equity
Gain/loss                                      1.3             1.3           1.3
on cash
flow
hedges
transferred
to IS
Trans-                                -4.7                    -4.7   -0.2   -4.9
lation
differences
Share-                                                  0.4    0.4           0.4
based
incentives,
value of
received
services
Total net       -        -       -    -4.7    -6.6      0.4  -10.9   -0.2  -11.1
income                                              
recognised
directly
in equity
Net                                                    39.4   39.4    0.0   39.4
income
for the
period
Total           -        -       -    -4.7    -6.6     39.8   28.5   -0.2   28.3
recognised
income
and
expenses
for the
period
Dividends                                             -63.2  -63.2         -63.2
paid                                              
Shares        0.1      0.5                                     0.6           0.6
subscribed
with
options
Other                                                          0.0   -0.2   -0.2
changes
Equity on    64.1     96.5   -23.9   -16.7     3.9    710.8  834.7    7.6  842.3
31.3.2007                                              

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

                                                        
MEUR                              1-3/2007      1-3/2006     1-12/2006 
Net income for the period             39.4          33.9         166.1
Capital gains                            -             -         -17.8
Depreciation                          12.0           9.8          40.5
Other adjustments                     18.5          17.0          73.7
Change in working capital            -17.8         -20.1         -12.7
Cash flow from operations             52.1          40.6         249.8
                                                        
Cash flow from financial             -25.1          -6.5         -51.1
items and taxes
Cash flow from operating              27.0          34.1         198.7
activities
                                                        
The gain from the sale of                -             -          31.3
property
Acquisitions                         -13.0         -16.7         -89.1
Cash flow from investing             -18.1         -12.0         -58.0
activities, other items
Cash flow from investing             -31.1         -28.7        -115.8
activities
                                                        
Acquisition of treasury                  -             -         -18.9
shares
Proceeds from share                    0.6             -           1.1
subscriptions
Dividends paid                       -59.0         -37.9         -41.3
Proceeds from long-term              226.9           0.0           0.1
borrowings
Repayments of long-term               -2.8          -3.0         -25.9
borrowings
Proceeds from short-term               4.8           0.6          15.9
borrowings
Repayments of short-term              -7.2          -6.4          -7.6
borrowings
Cash flow from financing             163.3         -46.7         -76.6
activities
                                                        
Change in cash                       159.2         -41.3           6.3
                                                        
Cash, cash equivalents and           114.5         111.2         111.2
bank overdrafts at the
beginning of period
Effect of exchange rate               -0.4          -0.7          -3.0
changes
Cash, cash equivalents               273.3          69.2         114.5
and bank overdrafts at the
end of period
                                                        
Bank overdrafts at the end             4.7           9.4           9.8
of period
Cash and cash equivalents            278.0          78.6         124.3
at the end of period

KEY FIGURES                                               
                                  1-3/2007      1-3/2006     1-12/2006 
Equity/share    EUR                  13.16         11.84         13.72
Interest-       MEUR                 179.6         154.9         107.5
bearing net
debt
Total           %                     40.7          45.8          47.6
equity/total
assets
Gearing         %                     21.3          20.3          12.3
Return on       %                     18.3          17.7          20.2
equity
Return on       %                     19.9          21.2          23.1
capital
employed

SEGMENT REPORTING                                           
                                                           
Sales by geographical             1-3/2007      1-3/2006      1-12/2006 
segment, MEUR                          
EMEA                                   384           344          1,368 
Americas                               176           171            720 
Asia Pacific                           134            99            509 
Total                                  694           614          2,597 
                                                            
                                                           
Sales by geographical             1-3/2007      1-3/2006      1-12/2006 
segment, %                             
EMEA                                  55.3 %        56.1 %         52.7 %
Americas                              25.4 %        27.8 %         27.7 %
Asia Pacific                          19.3 %        16.1 %         19.6 %
Total                                100.0 %       100.0 %        100.0 %
                                                            
                                                            
Sales, MEUR                       1-3/2007      1-3/2006      1-12/2006 
Hiab                                   240           230            914 
Kalmar                                 324           284          1,203 
MacGREGOR                              131           101            482 
Internal sales                           0             0             -2 
Total                                  694           614          2,597 
                                                            
                                                            
Operating profit, MEUR            1-3/2007      1-3/2006      1-12/2006 
Hiab                                  24.3          22.5           86.0 
Kalmar                                26.8          25.0          111.7 
MacGREGOR                             10.6           6.1           35.9 
Corporate administration              -3.8          -2.7          -11.9 
and other
Operating profit from                 57.9          50.9          221.7 
operations
Gain on the sale of                      -             -           17.8 
property
Total                                 57.9          50.9          239.5 
                                                            
                                                           
Operating profit, %               1-3/2007      1-3/2006      1-12/2006 
Hiab                                  10.1 %         9.8 %          9.4 %
Kalmar                                 8.3 %         8.8 %          9.3 %
MacGREGOR                              8.1 %         6.0 %          7.5 %
Cargotec, operating profit             8.3 %         8.3 %          8.5 %
from operations
Cargotec                               8.3 %         8.3 %          9.2 %

Orders received, MEUR             1-3/2007      1-3/2006      1-12/2006 
Hiab                                   264           266            946
Kalmar                                 393           351          1,282
MacGREGOR                              259           188            684
Internal orders received                -1             0             -2
Total                                  915           805          2,910
                                                          
                                                          
Order book, MEUR                 31.3.2007     31.3.2006     31.12.2006 
Hiab                                   237           226            215
Kalmar                                 651           587            593
MacGREGOR                              923           626            813
Internal order book                      0             0              0
Total                                1,811         1,439          1,621
                                                          
                                                          
Capital expenditure, MEUR         1-3/2007      1-3/2006      1-12/2006 
In fixed assets (excluding             9.8           7.6           46.1
acquisitions)
In leasing agreements                  0.0           0.5            0.5
In customer financing                  5.3           6.1           22.2
Total                                 15.1          14.2           68.8
                                                          
                                                          
Number of employees at the       31.3.2007     31.3.2006     31.12.2006
end of period                                       
Hiab                                 3,780         3,471          3,647
Kalmar                               4,041         3,307          3,705
MacGREGOR                            1,203           908          1,117
Corporate administration                59            43             47
Total                                9,083         7,729          8,516
                                                          
                                                          
Average number of employees       1-3/2007      1-3/2006      1-12/2006 
Hiab                                 3,702         3,449          3,571
Kalmar                               3,872         3,182          3,415
MacGREGOR                            1,153           906            994
Corporate administration                57            44             46
Total                                8,784         7,581          8,026

NOTES

Commitments                                        
                                                   
MEUR                             31.3.2007     31.3.2006     31.12.2006 
Guarantees                             0.5           0.3            0.5
Dealer financing                       9.6          12.4            8.5
End customer financing                 6.7           6.9            6.7
Operating leases                      38.9          27.6           38.1
Other contingent                       3.8           4.0            3.9
liabilities
Total                                 59.5          51.2           57.7

Fair values of                                          
derivative
financial
instruments
                       Positive     Negative         Net        Net         Net 
                           fair         fair        fair       fair        fair
                          value        value       value      value       value
MEUR                  31.3.2007    31.3.2007   31.3.2007  31.3.2006  31.12.2006 
FX forward                 15.5         12.2         3.3       -9.8        18.6
contracts, cash
flow hedges
FX forward                 13.1          1.9        11.2        5.0        -9.1
contracts, non-
hedge accounted
Interest rate                 -          0.0         0.0       -0.4         0.0
swaps, non-hedge
accounted
Cross currency and          2.6          0.5         2.1          -        -0.7
interest rate
swaps, cash flow
hedges
Total                      31.2         14.6        16.6       -5.2         8.8
                                                        
Non-current                                                      
portion:
FX forward                  2.8          2.9        -0.1       -1.0         2.7
contracts, cash
flow hedges
Cross currency and          2.6          0.5         2.1          -        -0.7
interest rate
swaps, cash flow
hedges
Non-current portion         5.4          3.4         2.0       -1.0         2.0
                                                                 
Current portion            25.8         11.2        14.6       -4.2         6.8

Nominal values of                                           
derivative financial
instruments
                                                   
MEUR                             31.3.2007       31.3.2006       31.12.2006 
FX forward contracts               1,820.0         1,571.5          1,752.7
Interest rate swaps                   10.0            45.0             10.0
Cross currency and interest          225.7               -            225.7
rate swaps
Total                              2,055.7         1,616.5          1,988.4

ACQUISITIONS 2007

In January-March 2007 Cargotec made several acquisitions in line
with its strategy. These acquisitions were individually
immaterial.

In January, Hiab made an agreement to acquire the majority of its
Australian importer, BG Crane Pty. Ltd. The acquisition was
finalized in February. In January, Kalmar signed agreement to
acquire Tagros d.o.o., a Slovenia-based services company. The
acquisition was completed immediately after signing. In January,
Kalmar signed also agreement to acquire Truck och Maskin i
Örnsköldsvik AB, a Swedish company. The acquisition was finalized
in February. In February, Kalmar made an agreement to acquire the
assets and business of Port Equipment Service, Inc., a U.S.
based services company. The acquisition was finalized in February.

Management estimates that the consolidated sales for Jan 1-Mar 31,
2007 would have been approximately EUR 697 million, if the
acquisitions had occurred on Jan 1, 2007.

The table below summarizes the acquisitions in January-March 2007.
The business combinations were accounted as preliminary as the
determination of fair values to be assigned to the assets,
liabilities and contingent liabilities were not yet finalized.

                          Net fair values of           Assets and
                          identifiable                 liabilities
                          assets and                   immediately
                          liabilities of the           before the
                          acquired businesses          business
                                                       combination
                                             
MEUR                                     
Other intangible                          2.1                  0.0
assets
Property, plant and                       9.1                  9.1
equipment
Inventories                               5.5                  5.5
Non-interest-                             5.3                  5.3
bearing assets
Cash and cash                             0.3                  0.3
equivalents
Interest-bearing                         -8.4                 -8.4
liabilities
Other non-interest-                      -8.8                 -8.2
bearing liabilities
Acquired net assets                       5.1                  3.6
Transaction price                        13.2 
Costs related to                          0.5 
acquisitions
Goodwill                                  8.6 
                                         
Transaction price                        11.2 
paid in cash
Costs related to                          0.3 
acquisitions
Cash and cash                            -0.3 
equivalents in
acquired businesses
Total cash outflow                       11.2 
from acquisitions


ACCOUNTING PRINCIPLES:

The interim report has been prepared according to the
International Accounting Standard 34: Interim Financial Reporting.
The accounting policies adopted are consistent with those of the
annual financial statements of 2006. All figures in the accounts 
have been rounded and consequently the
sum of individual figures can deviate from the presented sum
figure.


Adoption of New or Revised IFRS Standards and Interpretations in
2007

In January 2007 Cargotec has also adopted the following new and amended
standards and interpretations by the IASB published in 2006:

- IFRS 7, Financial Instruments: Disclosures
- IAS 1 Amendment, Capital Disclosures
- IFRIC 10, Interim Financial Reporting and Impairment
- IFRIC 11, Group and Treasury Shares Transactions

The adoption of the new and revised standards and interpretations
does not have a material effect on the interim financial statements.

Reclassification of balance sheet items

Division of derivative assets and liabilities into current and non-
current has been taken into use in 2006. Derivative instruments,
for which hedge accounting is applied, and for which the
underlying cash flow matures after twelve months, are included in
non-current assets and liabilities, other derivative instruments
are included in current assets and liabilities. In previous
financial statements all derivatives have been included in current
assets and liabilities. The comparative figures of March 31, 2006
have been restated accordingly.

Retrospective adjustment of final accounting of the acquisitions

In financial statements of 2006 the impact of final accounting of
the acquisitions of 2005 were recognized retrospectively for the
period Jan 1-Dec 31, 2006. The comparative figures of March 31,
2006 have been restated accordingly.

Share-based payments

The share-based incentive scheme for top management that was
approved by the Board of Directors in July 2005 has ended in March
2007. The members of the scheme received 20,660 Cargotec 2005B
option rights and in cash 65,000 synthetic option rights. The fair
value of a synthetic option was EUR 28.22 at payment day.

In January 2007, Cargotec published a new share-based incentive
scheme for the company's key managers for the years 2007-2011. The
rewards will be paid during 2009-2012 in both class B shares and
cash. The cash portion is dedicated to cover possible taxes and
tax-related payments resulting from the total reward. Shares
distributed as reward will contain a prohibition to hand over or
sell the shares within one year of the end of an earnings period
with the exception of the final earnings period when no
prohibitions are included. The shares will be lost if the holder
leaves the company before the prohibition period ends. At the end
of March 2007 the earnings period 2007-2008 involves 52 persons.
If they were to receive the maximum number of shares in accordance
with the scheme, a total of 127,200 shares, their
shareholding obtained via the program would amount to 0.09
percentage of the Company's class A and B voting rights.  The
incentive scheme is booked and valued according to the Share-based
payments accounting principle presented in the annual financial
statements of 2006.

QUARTERLY FIGURES

Cargotec              Q1/2007  Q4/2006  Q3/2006   Q2/2006  Q1/2006 
Orders        MEUR        915      716      603       786      805
received
Order book    MEUR      1,811    1,621    1,594     1,544    1,439
Sales         MEUR        694      697      625       661      614
Operating     MEUR       57.9     57.7     52.1*     61.0     50.9
profit
Operating     %           8.3      8.3      8.3*      9.2      8.3
profit
Basic         EUR        0.62     0.61      0.60*    0.64     0.52
earnings/share

                                                         
                                                         
Hiab                  Q1/2007  Q4/2006   Q3/2006  Q2/2006  Q1/2006 
Orders        MEUR        264      241       207      232      266
received
Order book    MEUR        237      215       215      216      226
Sales         MEUR        240      239       208      237      230
Operating     MEUR       24.3     22.7      17.4     23.4     22.5
profit
Operating     %          10.1      9.5       8.4      9.9      9.8
profit
                                                         
                                                         
Kalmar                Q1/2007  Q4/2006   Q3/2006  Q2/2006   Q1/2006 
Orders        MEUR        393      327       258      346       351
received
Order book    MEUR        651      593       581      615       587
Sales         MEUR        324      321       290      309       284
Operating     MEUR       26.8     28.2      27.5     31.0      25.0
profit
Operating     %           8.3      8.8       9.5     10.0       8.8
profit
                                                         
                                                         
MacGREGOR             Q1/2007  Q4/2006   Q3/2006  Q2/2006   Q1/2006 
Orders        MEUR        259      149       139      208       188
received
Order book    MEUR        923      813       798      713       626
Sales         MEUR        131      138       127      116       101
Operating     MEUR       10.6      9.7       9.9     10.2       6.1
profit
Operating     %           8.1      7.0       7.8      8.8       6.0
profit

* Excluding gain on the sale of property