2007-12-17 09:00:00 CET

2007-12-17 09:00:25 CET


REGULATED INFORMATION

English
Cargotec - Company Announcement

Cargotec to Book EUR 18 Million One-Off Cost in Fourth Quarter due to Inspection and Repair Program of Container Spreaders


Cargotec has discovered deficiencies related to welding in its Bromma
container spreaders resulting in a need for a global inspection
program and possible preventive repair in certain types of spreaders.
The total number of spreaders that will be inspected is some 1,730
units. A one-off cost reserve of EUR 18 million will be booked in
Cargotec's fourth quarter operating profit to cover the cost of
required actions.

Bromma is contacting customers to arrange a detailed timetable for
the inspection of the welding in the spreaders based on serial
numbers that identify a possible risk. As of today welding cracks
have been found in 35 spreaders on which repair work is already
ongoing. The identified deficiency is not estimated to cause an
immediate safety risk when the spreaders are used in normal operating
conditions. No load failures or injuries have occurred. However,
prompt actions in cooperation with customers are being taken to
ensure that safety is not compromised.

Cargotec's fourth quarter is operationnally, excluding this
inspection program cost, going according to earlier guidance given in
conjuction with the third quarter 2007 interim review. The company
continues to estimate that fourth quarter operating profit in euros
will improve from the previous quarters before this inspection
program cost. The operating profit margin for the fourth quarter
before the inspection program cost is estimated to remain at the
third quarter level.

Regarding sales Cargotec continues to expect approximately 15% sales
growth for the full year 2007. Based on the value of orders received
so far in the fourth quarter the earlier issued guidance on order
intake growing close to 30% is expected to be exceeded.


Sender:
Cargotec Corporation

Kari Heinistö
Senior Executive Vice President and CFO

Eeva Mäkelä
SVP, Investor Relations and Communications

For further information, please contact:
Per-Anders Holmström, President, Bromma, tel. +46 8 6200 900
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358 40
72 76 766

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 sales are EUR 2.8 billion.
The company employs over 11,000 people and operates in close to 160
countries. Cargotec's class B shares are quoted on the OMX Nordic
Exchange, Helsinki.

www.cargotec.com