Cargotec - Company Announcement

Cargotec adjusts previous estimate on project cost overruns in Kalmar

CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 18 JUNE 2014 AT 2 PM (EEST)

Cargotec adjusts previous estimate on project cost overruns in Kalmar

Cargotec adjusts previous estimate on project cost overruns in Kalmar business
area. In connection with the first quarter interim report, Cargotec stated that
the majority of sales of the large projects sold in 2011-2012 have been
recognised as revenue. In the same context, it was stated that significant cost
overruns related to one ship-to-shore crane project sold in 2012 were found. In
an analysis conducted thereafter in this specific project, it has become
evident, that this project will result in a higher than expected cost overrun
for Kalmar in order to deliver the project.

Cargotec will book approximately EUR 40 million in project cost overruns in
Kalmar's second quarter operating profit, in addition to EUR 9 million booked in
the first quarter. This is estimated to cover the costs for finalising project
deliveries.

President of Kalmar Olli Isotalo will take over the operative responsibility of
the Automation & Projects division responsible for project sales and delivery
besides his current responsibilities. Processes and related controls of the
division will be further strengthened. Management of the above-mentioned ship-
to-shore crane project has been replaced and resourcing strengthened, and
tightened internal controls have been introduced in order to secure project
delivery according to plan. In addition, cooperation negotiations have been
started to reorganise the ship-to-shore crane business.

At the same time, the on-going profitability improvement programme in Kalmar,
targeting EUR 40 million run-rate improvement by the end of this year, is
proceeding according to plan.

Outlook for 2014 unchanged
Despite cost overruns in Kalmar's projects, Cargotec's outlook for 2014 is
unchanged. Cargotec's 2014 sales are expected to grow from 2013. Operating
profit excluding restructuring costs for 2014 is expected to improve from 2013.


For further information, please contact:
Olli Isotalo, President, Kalmar, tel. +358 20 777 4111
Eeva Sipilä, Executive Vice President, CFO, tel. +358 20 777 4104
Anne Westersund, Senior Vice President, Communications and Public Affairs, tel.
+358 20 777 4460
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084


Cargotec shapes the cargo handling industry for the benefit of its customers and
shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are
recognised leaders in cargo and load handling solutions around the world. Their
global network is positioned close to customers and offers extensive services
that ensure a continuous, reliable and sustainable performance according to
customers' needs. Cargotec's sales totalled approximately EUR 3.2 billion in
2013 and it employs approximately 11,000 people. Cargotec's class B shares are
quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com

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