2009-02-02 11:01:25 CET

2009-02-02 11:02:36 CET


REGULATED INFORMATION

English
Cargotec - Financial Statement Release

Cargotec Corporation's Financial Statements Review 2008


Cargotec Corporation, Stock Exchange Release, February 2, 2009 at
12:00 p.m. Finnish time

* Orders received totalled EUR 3,769 (4,106) million. During the
    fourth quarter, orders received were EUR 633 (1,214) million.
  * The order book was EUR 3,054 (2,865) million.
  * Sales grew by 13 percent, amounting to EUR 3,399 (3,018) million.
    Sales for the fourth quarter were EUR 924 (868) million.
  * Sales for services grew to EUR 871 (757) million, representing 26
    (25) percent of total sales.
  * Operating profit excluding restructuring costs was EUR 192.8
    (203.1) million with EUR 35.9 (46.3) attributable to the fourth
    quarter. Operating margin excluding restructuring costs was 5.7
    (6.7) percent and 3.9 (5.3) for the fourth quarter.
  * Operating profit was EUR 173.7 (203.1) million with EUR 16.8
    (46.3) million attributable to the fourth quarter. Operating
    profit includes EUR 19 million of costs from the restructuring
    program announced in September.
  * Cash flow from operating activities before financial items and
    taxes totalled EUR 133.8 (235.1) million.
  * Net income for the period amounted to EUR 120.8 (138.4) million.

  * Earnings per share were EUR 1.91 (2.17) with EUR 0.14 (0.45)
    attributable to the fourth quarter.

  * The number of personnel totalled 11,826 (11,187) at the end of
    the period.
  * The Board of Directors will propose to the Annual General
    Meeting, that of the distributable profit, a dividend of EUR 0.59
    per each class A share and EUR 0.60 per each class B share
    outstanding be paid.
  * In the current uncertain economic situation it is difficult to
    estimate the demand for Cargotec's products. This is further
    complicated by possible order cancellations and delays. The
    preconditions for sales growth exist in services and MacGREGOR.
    Sales of Hiab and Kalmar are expected to decline from 2008.
    Significant restructuring measures costing EUR 35 million were
    decided on during 2008 to create a new supply platform and
    improve profitability in Cargotec. Focus is on the rapid
    implementation of these measures. Approximately EUR 16 million of
    these costs remain for 2009.


The figures in this financial statements review are audited.
Cargotec's President and CEO Mikael Mäkinen:"We acted to last year's signals of the economic slowdown spreading
into Europe and initiated sizeable restructuring measures. However,
the speed of the deterioration was unanticipated. This meant that our
profitability suffered in the second half of 2008. Obviously, the
unexpected problems in Kalmar were a disappointment. Despite these
short-term issues we continue our actions to improve our efficiency
and global footprint to build a stronger and more competitive
Cargotec" states President and CEO Mikael Mäkinen.


Analyst and Press Conference

An analyst and press conference will be combined with a live
international telephone conference and arranged on February 2, 2009
at 1.30 p.m. Finnish time at Cargotec's head office, Sörnäisten
rantatie 23, Helsinki. The whole combined event will be held in
English. The financial statements will be presented by Cargotec's
President and CEO Mikael Mäkinen. The presentation material will be
available on the Company's internet pages by 1.30 p.m. Finnish time.

The conference call phone numbers are the following:
+1 646 843 4608 (US callers)
+44 20 3023 4412 (non-US callers)
Access code: Cargotec Corporation

The telephone conference can also be viewed as a live audio webcast
through the internet pages at www.cargotec.com. The archived webcast
will be available on the internet pages later during the day.

For further information, please contact:
Eeva Sipilä, CFO, tel. +358 204 55 4281
Paula Liimatta, IR Manager, tel. +358 204 55 4634

Cargotec improves the efficiency of cargo flows by offering handling
systems and the related services for the loading and unloading of
goods. Cargotec's brands, Hiab, Kalmar and MacGREGOR, are global
market leaders in their fields and their solutions are used on land
and at sea - wherever cargo is on the move. Extensive services close
to customers ensure the continuous usability of equipment. Cargotec
is the technology leader in its field, its R&D focusing on innovative
solutions that take environmental considerations into account.
Cargotec's sales total EUR 3.4 billion and it employs approximately
12,000 people. Cargotec's class B shares are quoted on the NASDAQ OMX
Helsinki.

www.cargotec.com


Operating Environment

The markets for load handling equipment were strong in Europe for the
first part of the year but weakened significantly during the second
half as a result of a general slowdown in construction-related
customer segments. In the United States, demand for load handling
equipment was slack throughout the year. However, there are
opportunities in government business as various countries are looking
for ways to boost economic growth. In Asia Pacific, growth remained
healthy, with the exception of Japan.

The markets for container handling equipment remained healthy until
the last quarter, during which the economic uncertainty began to be
reflected in customers' investment decisions. The markets for
reachstackers, straddle carriers and rubber-tyred gantry (RTG) cranes
were active. Demand for medium and light fork lift trucks as well as
terminal tractors in mature markets slackened towards the end of the
year. Port operators' interest in automation continued with several
automation projects in simulation and planning phase.

The markets for marine cargo flow systems and offshore solutions were
strong throughout the year, which can be seen in the high number of
orders received. However, the turbulence in the financial markets and
lower ship capacity utilisation slowed down new ship orders towards
the end of the year. Market uncertainty was increased by speculation
relating to cancellations of already placed ship orders.

Demand for services remained favourable, the economic downturn having
no significant effect on activity. Customers are increasingly
interested in improving their operational flexibility. In emerging
markets, high usage rates of equipment supported demand for services.
Service demand in Europe was healthy. In the US, weak economic
environment affected demand for services.

Orders Received

Orders received in 2008 totalled EUR 3,769 (4,106) million.
Especially, the boom in shipbuilding boosted the orders received by
MacGREGOR during January-September. The value of orders secured by
Cargotec during the fourth quarter was down to EUR 633 (1,214)
million reflecting the sharply increased economic uncertainty.



Orders received,
MEUR                  1-12/2008 Share, % 1-12/2007 Share, % Change, %
Hiab                        818      22        985       24       -17
Kalmar                    1,566       41     1,429       35       +10
MacGREGOR                 1,393       37     1,696       41       -18
Internal orders
received                     -9                 -4
Total                     3,769      100     4,106      100        -8



Hiab

Of total orders received, Hiab accounted for EUR 818 (985) million
while its share of orders received in October-December was EUR 157
(254) million. Major part of the orders Hiab secured were small
individual orders, which is typical of its operations. Orders
received have declined as a result of a drop in demand in
construction-related customer segments in the US and also in Europe
during the second half of the year.

During the fourth quarter, Hiab received an order for over EUR 16
million from the Iraqi Ministry of Electricity. This order includes
95 loader cranes and cargo bodies assembled on trucks. Most of the
deliveries will take place during 2009. In addition, Hiab received an
order for 21 hooklifts and 9 loader cranes from the Finnish Army and
an order for 100 demountables and 20 loader cranes to be installed by
Hiab from the Dutch Fire Brigade and Highway Police.

In September, Hiab received a significant order from BAE Systems Inc.
in the US for 428 loader cranes and 32 hooklifts. Delivery of the
equipment started during the fourth quarter of 2008, with most of the
deliveries taking place during 2009.

During the second quarter, Hiab booked an order for 90 demountables
to be delivered to the United Kingdom's Ministry of Defence.
Furthermore, Hiab delivered demountables and deep waste collection
units to the Olympic Village in Beijing, China.

Kalmar

Of total orders received, Kalmar accounted for EUR 1,566 (1,429)
million while its share of orders received in October-December was
EUR 348 (346) million. Several orders include navigation, container
position verification and remote monitoring systems developed by
Kalmar. Order intake for reachstackers was on a record high level
during 2008.

During the fourth quarter, Kalmar was awarded a new five-year
contract to supply Rough Terrain Container Handlers (RTCH) to the US
Department of Defence. This new contract was awarded by the
Tank-Automotive Armament Command (TACOM) and is structured to have
multiple delivery order releases over the term of the contract. The
value of the initial delivery orders will be around EUR 100 million
and the equipment will be delivered during 2009-2010. The total value
of the five-year contract is estimated to be over EUR 300 million.

During the second half, Kalmar additionally received several orders
for E-One+ rubber-tyred gantry cranes (RTG), straddle carriers and
terminal tractors. During the first half of 2009, four E-One+
rubber-tyred gantry cranes (RTG) will be delivered to the Evyap Port
in Turkey and during the third quarter, two E-One+ rubber-tyred
gantry cranes (RTG) to the Port of Koper's container terminal in
Slovenia, eight to the Port of Kumport in Turkey and four to the Port
of Livorno, Italy.

Orders for straddle carries were received from the United Kingdom,
Greece and Australia. Two of the 15 straddle carries being delivered
to DP World Southampton and one of the six being delivered to Tilbury
Container Services during the first half of 2009 will be fitted with
Kalmar's new hybrid technology, while the remainder are capable of
being upgraded to hybrids in the future. During the first half of
2009, an additional 10 straddle carriers will be delivered to the
Piraeus Port Authority in Greece. Four new automatic straddle
carriers will be brought into service at the Fisherman Islands
container terminal in Brisbane, Australia by September 2009. Some 42
terminal tractors were delivered to the Port of Salalah in Oman by
the end of 2008.

During the third quarter, Kalmar booked a significant order for
E-One+ rubber-tyred gantry cranes (RTG) from South Africa. A total of
32 RTGs will be delivered to Transnet Port Terminals in Cape Town,
South Africa starting in the summer of 2009 with the last units
arriving in autumn 2010.

During the financial period, Kalmar also received an order of seven
E-One+ rubber-tyred gantry cranes (RTG) and 10 reachstackers from
Indian Arshiya International. The delivery of this equipment started
at the end of 2008.

In June, Kalmar received an order for 30 terminal tractors, seven
E-One+ rubber-tyred gantry cranes (RTG) and five reachstackers from
Sociedad Portuaria Regional de Cartagena (SPRC) of Colombia. This
equipment will operate at SPRC's new Contecar terminal in Cartagena.
The smaller equipment has been delivered and the RTGs will be
operational by May 2009.

In May, Kalmar received an order for 30 straddle carriers from
Transnet Port Terminals (TPT) of South Africa. The deliveries to
TPT's container terminal in the Port of Durban began in the summer,
with the final units arriving in January 2009.

In March, Kalmar received an order for 48 EDRIVE® straddle carriers
for Eurogate's operations in Germany. A total of 22 units have been
ordered for Eurogate's CTB Bremerhaven container terminal, and 13
units will go to Eurogate's CTH Hamburg. Another 13 units will be
deployed at the MSC Gate Bremerhaven terminal, a joint venture
between Eurogate and Mediterranean Shipping Company. Equipment
deliveries began in the autumn with the last units arriving at the
beginning of 2009. In addition, Kalmar provided Steveco Oy with ten
Kalmar EDRIVE® straddle carriers for the Mussalo container terminal
in Kotka, Finland.

During the first quarter, Kalmar received E-One+ rubber-tyred gantry
crane (RTG) orders from, for example, Vietnam, Thailand, India,
Brazil and Morocco. Kalmar will deliver 17 of these cranes to Vietnam
International Container Terminals' Ho Chi Minh City facility between
2008 and 2010. LCMT Company Ltd. from Thailand ordered six RTGs for
its terminal at the Port of Laem Chabang. The cranes are due to for
delivery by March 2009. Kalmar will also deliver 11 RTGs to Gateway
Terminals India at Nhava Sheva in January 2009. South America's
largest container terminal operator, Santos Brasil S/A, ordered 12
RTGs for delivery by March 2009. Furthermore, Somaport operating in
the port of Casablanca, Morocco, ordered ten RTGs to be delivered in
early 2009.

In February, Kalmar received an order for 22 E-One+ rubber-tyred
gantry cranes (RTGs) from South African Transnet Limited. This
equipment will be delivered in 2008-2009 for the new Port of Ngqura.
In February, Kalmar also secured an order from the Port of Tacoma on
the US West Coast for the supply of seven straddle carriers. These
will be used in container handling in on-dock rail facilities and
will be equipped with Kalmar's monitoring system, speeding up their
operation. The machines were delivered during the second half of
2008.

MacGREGOR

Of total orders received, MacGREGOR accounted for EUR 1,393 (1,696)
million while its share of orders received in October-December was
EUR 129 (616) million. The drop in orders received during the fourth
quarter reflected the exceptional shipbuilding boom of the past
couple of years clearly slowing down. Also the global economic
slowdown at the end of the year created a situation of overcapacity
in many ship types, which has lead ship owners to reconsider their
investment plans.

During the fourth quarter, MacGREGOR received orders worth nearly EUR
30 million from China for ten shipsets of cranes, hatch covers and
fixed container fittings. This equipment will be delivered in
2010-2011.

During the third quarter, MacGREGOR received significant hatch cover,
ship crane and RoRo equipment orders from Korea, Singapore, China and
Japan. Hatch covers will be delivered for 39 container ships. An
order of new ship cranes and hatch covers for four heavy-lift vessels
was received from Singapore. RoRo equipment and hoistable car decks
will be delivered for 16 pure car/truck carriers in 2009-2011.

In August, the Offshore division received a major order for two
active heave compensated offshore cranes from Finnish Finstaship. The
cranes will delivered during the second half of 2010.

During the second quarter, MacGREGOR obtained extensive hatch cover
and RoRo equipment orders, mainly from Korea and Japan. The hatch
cover orders are for a large number of container and bulk vessels to
be delivered in 2009-2012. The RoRo equipment orders include the
design and manufacture of RoRo equipment as well as hoistable car
decks for four deep-sea ConRos (vessels carrying both container and
RoRo cargo). The equipment will be delivered in 2010-2011.

In June, MacGREGOR signed a contract to supply self-loading and
unloading cement handling systems for three cement carriers.
Deliveries of the systems will begin during summer 2009.

In May, the Offshore division received a crane order from the
US-based Edison Chouest Offshore. The cranes will be delivered by the
first quarter of 2009. Furthermore, a large number of orders were
received, in particular for davits, for delivery during 2008-2009.

During the first quarter, MacGREGOR received a large number of ship
crane and hatch cover orders, mainly from China and Korea. MacGREGOR
will deliver a total of 276 bulk handling cranes for vessels, to be
delivered to ship owners in Germany, Singapore, China and Korea.
MacGREGOR also agreed to deliver hatch covers for 70 container
vessels, 120 bulk vessels and 41 general cargo ships. The equipment
will be delivered in 2009-2011.

In March, MacGREGOR received a major bulk handling equipment order
from the Taiwan Power Company for coal-handling equipment.
MacGREGOR's Siwertell bulk handling system features a totally closed
conveying system that limits the amount of cargo dust released into
the air.

In March, MacGREGOR also received an order for 30 shipsets of tanker
cranes for a Chinese shipyard. Provision and hose handling cranes
will be delivered in 2008-2010 for tankers ordered by Turkish,
Norwegian, Russian and Cypriot ship owners.

In January, MacGREGOR received RoRo equipment orders for 12 pure
car/truck carriers (PCTCs). These orders include hoistable car decks
for four vessels that will be built in the Korean Hyundai Heavy
Industries shipyard and delivered during 2009-2010. Additionally, the
orders include the design and delivery of key components for eight
PCTCs under construction in China.

Cargotec Services

The services market continued to be active, which was reflected in
the demand for maintenance, modernisation contracts and spare parts.
Maintenance contracts were received from European as well as emerging
market customers in for example India, Russia and Africa. Cargotec
continued to enhance its service network.

An order for annual maintenance of some 600 loader cranes was
received from Electricité Réseau Distribution France.

The market for ship conversions was very active and several orders
were received for delivery during 2008-2009. However, the economic
uncertainty slowed down demand during the second half. The hatch
cover conversion order received from Everlast Shipping S.A. in Greece
in September was cancelled. Contracts received during May include one
for the supply of electrically driven hoistable car decks for
Finnlines' two RoRo vessels, as well as a contract for the conversion
of a vessel's control systems.

In May, a five-year operation and maintenance contract for
rubber-tyred gantry cranes and reachstackers was signed with Arshiya
International in Mumbai, India and a three-year leasing and full
maintenance contract for reachstackers in the port of Gothenburg,
Sweden.

Additional contracts include a five-year full maintenance contract in
April on four ship-to-shore cranes delivered to the port of Vuosaari,
Finland. Another contract in the same port covers the maintenance of
straddle carriers, terminal tractors and reachstackers.

In March, a five-year service contract was signed with the Norwegian
company, Norsteve Oslo, covering the maintenance, spare parts and
repairs of five straddle carriers at the Sjursøya container terminal
in the Port of Oslo.

During the first quarter, a major maintenance contract for ship
unloaders was received from the Philippines.

Order Book

Cargotec's order book totalled EUR 3,054 (2,865) million on December
31, 2008. Of the order book, Hiab accounted for EUR 164 (260)
million, Kalmar EUR 704 (660) million, and MacGREGOR EUR 2,187
(1,946) million. Order cancellations booked in MacGREGOR in the
fourth quarter totalled EUR 119 million.


Order book,
MEUR               31.12.2008  Share, % 31.12.2007 Share, % Change, %
Hiab                      164        5         260        9       -37
Kalmar                    704       23         660       23        +7
MacGREGOR               2,187       72       1,946       68       +12
Internal order
book                       -1                   -1
Total                   3,054      100       2,865      100        +7



Sales

Cargotec's sales grew by 13 percent and totalled EUR 3,399 (3,018)
million. Sales derived from 2008 acquisitions were EUR 32 million.
Sales growth is a result of increased delivery volumes in Kalmar and
MacGREGOR and growth in service. Sales growth was strongest in Asia
Pacific.

Sales for the fourth quarter were EUR 924 (868) million. Hiab's sales
amounted to EUR 216 (244) million, Kalmar's EUR 413 (364) million and
MacGREGOR's EUR 298 (261) million. Hiab's sales declined due to the
weakened market in Europe during the second half of the year.
Kalmar's and MacGREGOR's sales grew as a result of strong order
intake and increased deliveries.


Sales, MEUR    1-12/2008  Share, % 1-12/2007 Share, % Change, %
Hiab                 907       27        931       31        -3
Kalmar             1,515       44      1,343       44       +13
MacGREGOR            985       29        748       25       +32
Internal sales        -8                  -4
Total              3,399      100      3,018      100       +13


Sales from services increased by 15 percent year-on-year and amounted
to EUR 871 (757) million, representing 26 (25) percent of total
sales. This growth was boosted by strong demand for spare parts and
maintenance agreements. Services accounted for 23 (17) percent of
January-December sales at Hiab, 29 (30) percent at Kalmar, and 23
(25) percent at MacGREGOR.

Financial Result

Cargotec's financial result reflects a year of two very distinct
halves, in which the first half was characterised by soaring demand,
which then plummeted due to the global financial crisis and slowing
markets especially in Hiab.

Cargotec's operating profit for 2008 totalled EUR 173.7 (203.1)
million. The operating profit includes EUR 19 million of costs and
asset write-downs booked in the fourth quarter from the restructuring
actions initiated in September. The 2007 comparison operating profit
includes the cost of EUR 18 million in Kalmar business area related
to a container spreader inspection and repair programme booked in the
fourth quarter.

Excluding restructuring costs the operating profit for 2008 was EUR
192.8 (203.1) million, representing 5.7 (6.7) percent of sales. The
operating profit includes a EUR 8.3 (9.9) million cost impact from
the purchase price allocation treatment of acquisitions and EUR 9
million in costs from the On the Move change programme.

Operating profit for the fourth quarter excluding the EUR 19 million
restructuring costs and write-downs was EUR 35.9 (46.3) million,
equal to 3.9 (5.3) percent of sales. Hiab accounted for EUR 3.7
(19.1) million of the fourth quarter operating profit, Kalmar for EUR
12.1 (26.9) million, and MacGREGOR for EUR 30.7 (22.3) million.

Of Cargotec's business areas, MacGREGOR improved its profitability
from the previous year, recording a record result for the final
quarter; major business growth has been achieved during the last two
years, alongside an improvement in profitability.

Kalmar's operating profit for the year includes a significant amount
of expenses due to cost overruns in projects. During the year,
project cost provisions of EUR 16 million were booked in the business
area's operating profit: EUR 4 million for the first quarter, EUR 5
million for the third and EUR 7 million for the fourth.

Capacity utilisation rates were lowered by a major slowdown in the
European market during the third quarter, clearly eroding the
profitability of Hiab in the second half of the year. Hiab's
operating profit was further burdened by the slower and
more-expensive-than-expected ramp-up of Hiab's component plant
extension in Narva, Estonia.

In both Hiab and Kalmar, raw material and material costs continued to
rise in the second half which, alongside faltering demand, affected
profitability. Clear signs of falling costs, due to reductions in raw
material prices, and lower capacity utilisation rates among
subcontractors, only emerged at the very end of the year.

Due to weakening markets, September saw the initiation of a
restructuring programme, the original reduction forecasts of 700
employees being increased to almost 1,000. These measures were aimed
at adjusting capacity in Hiab to the prevailing market situation and
improving both Hiab's and Kalmar's profitability. Moreover, an annual
profitability improvement of around EUR 25 million in addition to
capacity adjustments is being sought through the cost saving
programme. The related costs and write-downs are estimated at
approximately EUR 35 million. Of these, EUR 19 million was booked in
the final quarter of 2008, including EUR 3 million in write-downs.
The remainder is expected to incur in early 2009.

Net income for 2008 was EUR 120.8 (138.4) million and earnings per
share EUR 1.91 (2.17).

Balance Sheet, Financing and Cash Flow

Cargotec's net working capital grew and, by December 31, 2008,
amounted to 324 (253) million. Capital remained employed in
components and unfinished products. On the other hand, advance
payments received as order confirmations from MacGREGOR's customers
had a positive impact on net working capital. Advances received
totalled EUR 420 (244) million at the end of the year. Tangible
assets on the balance sheet were EUR 284 (254) million and intangible
assets EUR 754 (751) million.

Cash flow from operating activities before financial items and taxes
was EUR 133.8 (235.1) million. In January-December, the dividend
payment totalled EUR 66.6 (63.8) million and acquisitions amounted to
EUR 46.5 (172.5) million. Net debt was EUR 478 (326) million on
December 31, 2008, including EUR 555 (488) million in
interest-bearing debt. The total equity/total assets ratio was 33.0
(38.3) percent while gearing increased to 55.3 (36.3) percent.

Cargotec's financing structure is healthy. Interest-bearing debt
consists mainly of long-term corporate bonds maturing from the year
2012. On December 31, 2008, Cargotec had EUR 635 million of unused
credit facilities.

Return on equity for the financial year was 13.7 (15.6) percent and
return on capital employed was 12.7 (16.8) percent.

New Products and Product Development

In 2008, Cargotec's research and product development expenditure was
EUR 47.0 (46.4) million, representing 1.4 (1.5) percent of sales.

In April, Cargotec opened an engineering centre in Pune, India,
providing engineering resources in emerging markets in support of
product development that better responds to local needs. The
engineering centre has been established as a resource pool for
Cargotec R&D centres around the world. It covers various engineering
activities from drafting to structural analysis as well as software
engineering. The unit employed almost 40 engineers at the end of the
year.

In September, Hiab expanded its crane offering with a solution that
fulfils the new EU-standard and enables using truck-mounted cranes to
lift personnel baskets.

Hiab introduced a new automatic load covering system to be used with
demountable units when transporting waste and recycling materials.

During the first quarter, Hiab opened a state-of-the-art
crane-testing centre at its loader crane production facility in
Hudiksvall, Sweden. The centre offers Hiab and other business areas
the opportunity to test more and longer cranes and components as well
as ensuring that testing is more precise than before.

Kalmar launched in 2008 the Pro Future(TM) concept encompassing all
of its environmentally friendly equipment. This equipment will be
rated against five ecological decision-making drivers: source of
power, energy efficiency, emissions, noise pollution and
recyclability.

The first two Pro Future(TM) solutions launched were an AC electrical
forklift truck for empty container handling and a hybrid straddle
carrier. Kalmar received the first order for a hybrid straddle
carrier during the third quarter. These Pro Future(TM) solutions were
followed in the third quarter by a variable speed rubber-tyred gantry
crane and a variable speed electric straddle carrier. During the
fourth quarter, Kalmar introduced an additional two new Pro
Future(TM) solutions: an automatic stacking crane and a ship-to-shore
crane with regenerative energy source.

During the first quarter, Kalmar launched a new, fully-automated
shuttle carrier that is able to pick, place and transport containers
between ship-to-shore (STS) and yard stacking cranes without a
driver. The new Kalmar Autoshuttle(TM) ensures the cost efficiency,
productivity and flexibility of port operations, particularly in the
very big ports of the future.

During 2008, Kalmar introduced a new medium range terminal tractor
offering better ergonomics and driver comfort as well as lower noise
levels than earlier models, also an electric forklift truck was
launched in the medium lift range.

MacGREGOR continued to develop electronically operated cargo handling
solutions and a new ship crane control system. The Offshore division
focused on the development of deck equipment enabling the use of
cranes in difficult weather conditions and when operating in deep
waters. In September, MacGREGOR signed the first contract to deliver
totally electrically-driven sets of RoRo equipment to two pure
car/truck carriers.

In February, MacGREGOR signed an agreement with the US Navy on the
development of a ship-to-ship vehicle transfer system. With the help
of this system, large vehicles can be transferred from one ship to
another while the ships are in motion. The prototype of the system
will be delivered by the end of 2009.

Capital Expenditure

Cargotec's capital expenditure for 2008, excluding acquisitions and
customer financing, totalled EUR 76.8 (53.2) million. Investments in
customer financing were EUR 35.9 (37.5) million.

The decision was taken to concentrate Hiab's crane manufacture in
Europe in three factories, entailing the closure of production at the
Salo plant in Finland. A further decision was taken to wind down the
manufacture of truck-mounted forklifts in Ohio, USA, and focus
production in Cargotec's common production unit in Kansas, USA.

In April, Cargotec formed a subsidiary, Cargotec Port Security, to
develop enhanced container security solutions. Cargotec has been
exploring and investing in the area of radiation detection in
container security for the past two years. It has entered into an
exclusive global technical licensing agreement with the US-based
Innovative American Technology, and has successfully field tested
spreader-mounted radiation detection.

During the second quarter, Hiab initiated the extension of a tail
lift production plant in Oborniki, Poland. The project was completed
during 2008. In Korea, Hiab invested in a new painting line at the
loader cranes production unit. Another project was finalised in
Raisio, Finland, resulting in a major increase in the production
capacity of demountable systems due to the implementation of a more
competitive production process.

During the second quarter, Kalmar started to expand its production
facility for rough-terrain container handling equipment in Cibolo,
Texas, USA as well as initiating an expansion of capacity in Ipoh,
Malaysia for container spreaders. Investments in the first quarter
include expanding its presence in the Americas by opening a new sales
company in Mexico as well as a new service unit in Zeebrugge,
Belgium.

In March, MacGREGOR opened a new offshore equipment production unit
in Tianjin, China. The new unit also enables production optimisation
and efficiency improvements in the offshore production units of
Norway and Singapore. Part of offshore cranes production were moved
from Norway to Singapore to make room for the increased production of
bigger size cranes in Norway.

On the Move change programme

In January, Cargotec announced the launch of an extensive On the Move
change programme aiming at a profitability improvement of EUR 80-100
million. The change programme aims to form a basis for profitable
growth through improved customer focus and efficiency. The projects
in the first phase have focused on streamlining support functions and
company structure as well as initiating IT projects that improve
efficiency. In Finland, Sweden, Singapore and USA, operations began
in Cargotec country companies.

In order to improve closeness to customers Hiab, Kalmar and MacGREGOR
changed their structure towards more customer oriented organisations
during the reporting period.

During the second half, the focus was on developing the global supply
footprint closer to customers as well as towards lower cost
environments. For this implemention, Cargotec established a common
corporate level Supply organisation, which is responsible for
sourcing and supply for the business areas.

The first joint supply chain projects are proceeding in China and
Estonia. The production capacity in Shanghai, China will be doubled.
The expansion will include moving Hiab's assembly unit to the same
site as the existing Kalmar facility. The capacity and productivity
of the production unit in Narva, Estonia, acquired in 2007, has been
upgraded. As part of the actions to improve the supply chain,
Cargotec is planning to establish a new assembly factory in Poland
mainly for Kalmar equipment.

Acquisitions

During January-December, Cargotec completed eight acquisitions, of
which four were in Hiab's business area.

In order to strengthen its R&D capabilities, Cargotec acquired 60
percent of Idea Designing & Consulting S.r.l. in Massa, Italy. The
company employs ten people in product design.

In October, Kalmar acquired 80 % of two Italian service companies,
CVS Technoports S.r.l. and CVS Service S.r.l. Subsequent to the
transaction, the companies work under the name Officine Cargotec
Ferrari and the companies focus on developing the service offering
towards container and material handling customers in Italy. The two
companies' combined sales turnover in 2007 was approximately EUR 8
million and the companies employ 65 people.

In August, Kalmar signed an agreement to acquire Argentina-based
Equipos y Servicios para Terminales y Puertos SRL. The company has
been Kalmar's dealer for Argentina, Uruguay and Paraguay. In addition
to new equipment distribution, the company provides equipment
commissioning, technical and spare part support, and equipment repair
and refurbishment in South America. The company's sales in 2007 were
around EUR 1 million and it employs 17 people.

In June, Hiab concluded an agreement to acquire the business of a
long-term distributor of tail lifts in New Zealand. In addition to
tail lift sales, the business comprises installation, repairs,
maintenance and spare parts sales.

At the end of March, Hiab concluded an agreement to acquire the
operations of the South African company Bowman Cranes (Pty) Limited,
Hiab's long-term agent in the region. This company supplies, installs
and services truck-related load handling equipment. In 2007, its
sales were approximately EUR 18 million and it employs 70 people.

In February, Hiab signed an agreement to acquire 70 percent of the
operations of an Australian company, O'Leary's Material Handling
Services Pty Ltd., the leading supplier of tail lifts in Western
Australia. The company employs 24 people and had sales of
approximately EUR 2.6 million in 2007.

In February, Hiab also agreed to acquire UK-based Del Equipment (UK)
Limited and US-based Ultron Lift Corp. Both of these companies
manufacture tail lifts. The aggregate sales of the companies in 2007
were approximately EUR 23 million and the companies employ 164
persons.

In April, MacGREGOR signed an agreement to acquire US-based Platform
Crane Service, Inc. The sales of the company in 2007 totalled USD 16
million and the company employs 105 persons.

Employees

On December 31, 2008, Cargotec employed 11,826 (11,187) people. Due
to the restructuring measures, the number of employees declined by
370 people mainly in Finland and Sweden. Hiab employed 4,308 (4,418)
people, Kalmar 4,766 (4,459), and MacGREGOR 2,577 (2,223). The
average number of employees during 2008 was 11,777 (10,276).

Of Cargotec's total employees, 13 (14) percent were located in
Finland, 20 (22) percent in Sweden and 30 (30) percent in the rest of
Europe. North and South American personnel represented 11 (11)
percent, Asia Pacific 24 (22) percent and the rest of the world 2 (1)
percent of total employees. 15 (15) percent of the personnel were
female and 85 (85) percent male. 3 (3) percent of Cargotec's total
employees worked part time and 97 (97) percent full time.

Salaries and remunerations to employees totalled EUR 387 (356)
million for the financial period.

As a result of lower demand and profitability, Cargotec initiated
restructuring measures in September, mainly in Western Europe and
North America. These measures aim at adjusting capacity in Hiab to
the prevailing market situation and improving Hiab's and Kalmar's
profitability. The negotiations ended by the end of the year resulted
in a reduction of 954 employees: 271 in Finland, 241 in Sweden, 117
in the USA, 91 in the Netherlands and a total of 234 in other
countries. Hiab saw 635 employee reductions, Kalmar 309 and corporate
functions 10.

Restructuring continued after the end of the financial year, due to
the further weakening of the markets.

Implementation of the new people strategy, approved by Cargotec's
Board in 2007, was enhanced in the reporting period. Special focus
areas included support for employee and change management, the
development of leadership skills and human resources competence
development, alongside committing the best talents. During the
reporting period, a uniform operating model and a global matrix
organization were created for human resources (HR) management in line
with the One the Move change programme. The comprehensive
introduction of shared HR management processes and tools was
reinforced globally. Additionally, Cargotec's key HR policies were
renewed during the year.

Environment

Cargotec's environmental policy defines the environmental principles.
The main environmental effects of Cargotec's operations are related
to the use of its products. For this reason, the Company focused on
indentifying product-based environmental perspectives in 2008.

In 2008, Cargotec introduced its new subcontractor criteria in which
environmental safety, occupational health and safety and quality
issues have been taken into account more extensively than before.

Cargotec's strategic business development goals support the creation
of holistic, sustainable, long-term solutions for customers. In
product development, environmental considerations form an integral
part of planning and manufacturing. In the service business, the
focus is on extending product life cycles while an extensive service
network helps uphold efficient operating characteristics. In addition
to product development and services, Cargotec is seeking to train its
customers to use Cargotec equipment so that safety and environmental
matters reach an optimal level.

Energy efficiency, safety and the prevention of oil leakages
represent key focus areas in Cargotec's product development. In 2008,
Cargotec determined a clear environmental criterion for energy
efficiency, according to which it undertakes to reduce the use of
fossil fuels by 10 percent in its equipment over the next 6-10 years.
A major step was taken in environmental impact assessment when
Kalmar, partly as a result of the aforementioned commitment, launched
its Pro Future(TM) environmental criteria.

The most significant environmental effects associated with Cargotec's
processes are related to those originating from the operations of the
various business units as well as transportation and commuting to and
from work. The certified ISO 9001 and ISO 14001 quality and
environmental management systems form the basis of Cargotec's
environmental management, and regular internal and external audits
and management audits are aimed at monitoring the achievement of the
related objectives.

Cargotec continued to build certified management systems into its
production units with the aim of creating an operational model that
helps to identify the most important environmental effects and
respond to them in all units. Eight of Hiab's 16 production units and
two of its sales companies apply environmental management systems
certified under ISO 14001. These systems cover approximately 80
percent of the sales of Hiab's production units. Six of Kalmar's
seven production units apply certified environmental management
systems, these systems covering also approximately 80 percent of the
sales of Kalmar's production units. MacGREGOR commissions most of its
products from selected partners independently responsible for their
production processes. Operational guidelines related to the
management of environmental issues are included in the quality
systems of most MacGREGOR units.

Furthermore, an extensive environmental assessment was conducted in
14 production units in accordance with a programme introduced in
2007. This involved the evaluation of management systems, facilities
and production from the viewpoint of their environmental effects
while taking into account the units' operating environment. Extensive
soil cleaning work was carried out in two Cargotec sites in 2008 as a
result of industrial activities that had taken place in those sites
earlier.

Internal control and risk management

Cargotec's President and CEO and the Executive Board are responsible
for the methods, implementation and supervision of risk management,
and report on these to the Board of Directors. The Corporate risk
management function is responsible for the development of
comprehensive risk management. This is supported by the creation of
Corporate-wide risk management principles, practices and risk
reports, the development of tools and the application and adoption of
these tools. Business areas and units are responsible for assigning,
managing and reporting the risks involved in their own operations.
The Corporate Treasury function manages financial risks centrally.
Cargotec has an internal auditing function which is responsible for
internal control and business risk auditing. The Internal Audit unit
operates under the supervision of the President and CEO and the Board
of Directors' Audit Committee, reporting regularly to the Audit
Committee on its operations and audit results.

Cargotec began the systematic development of its internal control in
2007. Cargotec's Board of Directors approved the internal control
policy in 2008. Responsibility for internal control at Cargotec is
divided into three tiers. Line management is primarily responsible
for internal control. It is aided by Corporate support functions,
which define policies and instruct on and supervise risk management.
Internal and external audits form the third tier, their task being to
ensure that the first two tiers are functioning effectively. As
Cargotec becomes more harmonised, its capabilities for the
development and implementation of risk management will be further
improved. The goal is that, besides general risk management
principles and guidelines, Cargotec also has risk management tools
that facilitate practical work and which are implemented throughout
the Company. During the year, Cargotec has developed a basic risk
management tool, the application and adoption of which will be
studied in the operations, business projects and risk reporting of
the business units.

Cargotec defines a risk as any internal or external threat or
uncertainty which may prevent or jeopardise operations and the
achievement of objectives. Risks are divided risks into strategic and
business risks, financial risks and operational and hazard risks.

Strategic and business risks are related to business cycles in the
world economy and Cargotec's customer sectors, the availability of
raw materials and components and trends in the related prices,
mergers and acquisitions and the operations of dealers and
subcontractors. Cargotec addresses these risks by striving to
identify them and prepare for them in advance.

Cargotec's treasury operations and financial risk management
principles are defined in the Corporate Treasury Policy. Financial
risks arising from Cargotec's business activities include currency,
interest rate, refinancing and liquidity, counterparty and operative
credit risks. The Company seeks to protect itself against these risks
in order to ensure a financially sound basis for developing its
business operations.

Operational risks relate to persons, property, processes, products,
information technology and practices. Cargotec's main activities
related to the management of these risks are related first and
foremost to increasing product safety and information security and
ensuring business continuity. With respect to key person risks,
succession plans for leadership and key assignments are updated on an
annual basis, for the purpose of ensuring continuity in operations.

Cargotec's main hazard risks include risks related to personnel,
property, business interruptions and logistics. In addition to
preventive risk management measures, Cargotec protects itself against
these risks by taking out worldwide insurance policies that cover all
units.

Shares, Share Capital and Option rights

Cargotec's share capital on December 31, 2008 totalled EUR
64,304,280. The share capital increased by EUR 83,907 during the
financial period as a result of the subscription for class B shares
under Cargotec option rights.

On December 31, 2008, the number of listed class B shares totalled
54,778,191 while that of unlisted class A shares totalled 9,526,089.
Class B shares accounted for 85.2 (85.2) percent of the total number
of shares and 36.5 (36.5) percent of votes. Class A shares accounted
for 14.8 (14.8) percent of the total number of shares and 63.5 (63.5)
percent of votes. The total number of votes attached to all shares
was 15,002,201 (14,994,074) at the year end. At the end of the
financial period, Cargotec held a total of 2,990,725 class B shares,
which corresponds to 4.7 percent of the total number of shares and
2.0 percent of votes.

Trading with 2005A option rights ended on March 20, 2008. The
remaining 2005B option rights may be used to subscribe for a further
104,730 class B shares, thereby increasing Cargotec's share capital
by EUR 104,730. The said number of shares that can be subscribed for
under the remaining option rights constitutes 0.2 percent of
Cargotec's total number of shares and 0.07 percent of the total
number of votes.


Market Capitalisation and Trading

The closing price of Cargotec's class B shares on December 31, 2008
was EUR 8.09. The average share price for January-December was EUR
21.47, the highest quotation being EUR 36.49 and the lowest EUR 7.63.
The share price dropped 74 percent during the financial period. In
January-December, approximately 86 million Cargotec class B shares
were traded on the NASDAQ OMX Helsinki, corresponding to a turnover
of approximately EUR 1,868 million. The average daily trading volume
of class B shares was 338,722 shares or EUR 7,381,727.

On December 31, 2008, the total market value of Cargotec class B
shares was EUR 419 million, excluding treasury shares held by the
Company. The period-end market capitalisation, in which unlisted
class A shares are valued at the average price of class B shares on
the last trading day of the financial period, was EUR 495 million,
excluding treasury shares held by the Company.

Changes in Cargotec's Management

On December 18, Cargotec's Board of Directors appointed Pekka Vauramo
as Senior Executive Vice President and Deputy to CEO Mikael Mäkinen.
Vauramo continues to be responsible for the Kalmar business area.

Axel Leijonhufvud was appointed as Senior Vice President, Product
Supply, starting from January 1, 2009. Leijonhufvud was earlier
responsible for product supply in Kalmar and was Chairman of Kalmar's
RTCH (Rough Terrain Container Handling) board at Cargotec
Corporation. Lauri Björklund, Senior Vice President, Production and
Purchasing, was appointed as Senior Vice President, Corporate
Development Projects as of January 1, 2009.

On February 1, 2008, Cargotec's Senior Executive Vice President Kari
Heinistö was appointed to lead the On the Move change programme. He
continues as a member of the Executive Board and secretary to
Cargotec's Board of Directors. Eeva Sipilä was appointed as
Cargotec's CFO as of February 1, 2008. Minna Karhu was appointed as
Vice President, Corporate Communications of Cargotec as of February
1, 2008.


Decisions Taken at Cargotec Corporation's Annual General Meeting

Cargotec Corporation's Annual General Meeting (AGM) was held on
February 29, 2008 in Helsinki. The meeting approved the financial
statements and consolidated financial statements as well as 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, 2007.

The AGM approved the Board's proposal of a dividend of EUR 1.04 for
each of the 9,526,089 class A shares and EUR 1.05 for the 52,789,559
outstanding class B shares.

The number of members of the Board of Directors was confirmed at six
according to the proposal of the Board's Nomination and Compensation
Committee. Henrik Ehrnrooth, Tapio Hakakari, Ilkka Herlin, Peter
Immonen, Karri Kaitue and Antti Lagerroos were elected as members of
the Board of Directors.

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

In addition, the AGM resolved to amend the Articles of Association
mainly due to and to align with the new Finnish Companies Act
effective as from 2006.

Authorisations Granted by the Annual General Meeting

The AGM authorised the Board of Directors of Cargotec to decide on
acquisition of the Company's own shares with non-restricted equity.
The shares may be acquired in order to develop the capital structure
of the Company, finance or carry out possible acquisitions, implement
share-based incentive plans, or to be transferred for other purposes
or to be cancelled. The shares may be acquired through a directed
acquisition as defined in Finnish Companies Act, Chapter 15 § 6.

Altogether no more than 6,400,000 own shares may be purchased, 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 1,904,725 class B
shares in the Company's possession on the AGM date, which were
purchased during 2005-2007. The proposed amount corresponds to less
than 10 percent of the share capital of the Company and the total
voting rights. The acquisition of own shares will decrease the
non-restricted equity. The authorisation is in effect for a period of
18 months from the date of decision of the AGM.

In addition, the AGM authorised the Board of Directors to decide on
transfer of treasury shares. The Board of Directors was authorised to
decide to whom and in which order the treasury shares will be
transferred. The Board of Directors may decide on the transfer of
treasury shares otherwise than in proportion to the existing
pre-emptive right of shareholders to purchase the Company's own
shares. The treasury 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 transfer of the shares in public trading
at the NASDAQ OMX Helsinki to be used as compensation in possible
acquisitions. This authorisation is in effect for a period of 18
months from the date of decision of the AGM.

Organisation of the Board of Directors

Cargotec's Board of Directors in its organising meeting elected Ilkka
Herlin to continue as Chairman of the Board and Henrik Ehrnrooth to
continue as Deputy Chairman. Cargotec's Senior Executive Vice
President Kari Heinistö continues to act as secretary to the Board of
Directors. Cargotec's Board of Directors decided that the Audit
Committee, Nomination and Compensation Committee as well as Working
Committee continue to assist the Board in its work.

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

Share Repurchases

Cargotec's Board of Directors decided to exercise the authorisation
of the AGM to acquire the Company's own shares. In accordance with
the authorisation class B shares were purchased at public trading in
the NASDAQ OMX Helsinki at the market price.

A total of 1,086,000 own shares were repurchased during the period
March 25-August 23, 2008 at an average price of EUR 21.73. Cargotec
held a total of 2,990,725 class B shares on December 31, 2008.

Short-term Risks and Uncertainties

Due to the financial crisis, the global economic situation is marked
by huge uncertainty. Cargotec's operations are subject to significant
short-term risks and uncertainty factors, specifically related to the
effects of the slump on demand for Cargotec's products and services
and the willingness of customers to invest. The fact that many
factors underlying this uncertainty are beyond the control of the
Company merely serves to amplify the challenge confronting risk
analysis.

Prolonged uncertainty and credit drought increases the risk of lower,
general willingness to invest and consequently demand for Cargotec's
equipment could further decrease. Shipbuilding in particular has been
affected by significant order cancellations due to lower shipping
utilisation rates combined with major increases in financing costs.
The credit crunch may also see other customer groups move their
investment decisions back or cancel orders. Furthermore, customers'
and suppliers' financial situations will affect the collection of
receivables and the level of bad debt.

Lower demand will require additional capacity adjustment measures.
Further falling off of demand at a faster rate than the
implementation of capacity cuts will have a negative impact on
performance.

Events after the reporting period

Staff reductions continued in January as the markets continued to
weaken. In the unit manufacturing tail lifts in Bispgården, Sweden,
negotiations began on the need for a reduction in the workforce of
75. At Kalmar's Ljungby and Lidhult units in Sweden, negotiations
began on the need for a reduction in the workforce of 97. Cargotec
plans to make its operations more efficient by reorganising and
transferring a majority of its business in Ljungby to its Lidhult
facility. Meanwhile, in Finland negotiations began for planned
temporary lay-off of 900 staff for a maximum of 90 days in Raisio and
Tampere and a reduction of 60 staff in Tampere.

Board of Director's Proposal on the Distribution of Profit

The parent company's distributable equity on December 31, 2008 was
EUR 959,964,211.07 of which net income for the period was EUR
158,536,423.21 The Board of  Directors will propose to the Annual
General Meeting convening on March 5, 2009, that of the distributable
profit, a dividend of EUR 0.59 per each of the 9,526,089 class A
share and EUR 0.60 per each 51,787,466 class B share outstanding be
paid, totalling EUR 36,692,872.11. The rest of the distributable
equity, EUR 923,271,338.96 will be retained and carried forward.

No significant changes have occurred in the Cargotec's financial
position after the end of the financial year. The liquidity is good
and, in the Board of Director's view, the proposed distribution of
dividend does not pose a risk to the Company's financial standing.

Outlook

In the current uncertain economic situation it is difficult to
estimate the demand for Cargotec's products. This is further
complicated by possible order cancellations and delays. The
preconditions for sales growth exist in services and MacGREGOR. Sales
of Hiab and Kalmar are expected to decline from 2008. Significant
restructuring measures costing EUR 35 million were decided on during
2008 to create a new supply platform and improve profitability in
Cargotec. Focus is on the rapid implementation of these measures.
Approximately EUR 16 million of these costs remain for 2009.


Financial calendar

Annual Report 2008 available on Cargotec's internet pages, week 7
Annual General Meeting on Thursday March 5, 2009
Record date for dividend on Tuesday March 10, 2009
Dividend payment on Tuesday March 17, 2009
Interim Report for the period January-March on Tuesday April 28, 2009
Interim Report for the period January-June on Monday July 20, 2009
Interim Report for the period January-September on Thursday October
22, 2009




Helsinki, February 2, 2009
Cargotec Corporation
Board of Directors



Cargotec Corporation's Financial Statements Review 2008



Consolidated
Income Statement

MEUR                10-12/2008   10-12/2007   1-12/2008   1-12/2007
Sales                    923.5        867.5     3,399.2     3,018.2
Cost of goods
sold                    -763.8       -689.3    -2,762.5    -2,376.8
Non-recurring
items *                      -        -18.0           -       -18.0
Gross profit             159.7        160.3       636.7       623.4
Gross profit, %           17.3 %       18.5 %      18.7 %      20.7 %
Other operating
income                    15.0          6.7        39.1        26.8
Selling and
marketing
expenses                 -49.4        -54.3      -189.9      -197.4
Research and
development
expenses                 -13.2        -10.4       -43.6       -38.9
Administration
expenses                 -58.7        -44.7      -212.0      -176.1
Restructuring
costs                    -19.1            -       -19.1           -
Other operating
expenses                 -18.1        -11.4       -38.0       -34.9
Share of
associated
companies' and
joint ventures'
net income                 0.5          0.1         0.6         0.3
Operating profit          16.8         46.3       173.7       203.1
Operating profit,
%                          1.8 %        5.3 %       5.1 %       6.7 %
Financing income           1.8          5.6        16.0        16.7
Financing
expenses                 -15.2        -12.2       -44.5       -35.5
Income before
taxes                      3.4         39.7       145.2       184.4
Income before
taxes, %                   0.4 %        4.6 %       4.3 %       6.1 %
Taxes                      5.6        -10.8       -24.4       -46.0
Net income for
the period                 9.0         28.9       120.8       138.4
Net income for
the period, %              1.0 %        3.3 %       3.6 %       4.6 %

Net income for
the period
attributable to:
Equity holders of
the Company                8.5         27.8       118.4       136.5
Minority interest          0.4          1.1         2.4         1.8
Total                      9.0         28.9       120.8       138.4

Earnings per
share for profit
attributable to
the
equity holders of
the Company:
Basic earnings
per share, EUR            0.14         0.45        1.91        2.17
Diluted earnings
per share, EUR            0.14         0.44        1.91        2.16

*Kalmar business area related container spreader inspection and
repair programme






Consolidated Balance Sheet

MEUR                                          31.12.2008   31.12.2007
ASSETS

Non-current assets
Goodwill                                           669.2        670.2
Other intangible assets                             85.0         81.0
Property, plant and equipment                      283.5        253.7
Investments in associated companies and
joint ventures                                       7.0          4.8
Available-for-sale investments                       2.0          2.3
Loans receivable and other interest-bearing
assets 1)                                            7.7          5.5
Deferred tax assets                                 97.2         55.5
Derivative assets                                   55.0          8.9
Other non-interest-bearing assets                    8.1         12.0
Total non-current assets                         1,214.6      1,094.0

Current assets
Inventories                                        881.9        657.4
Loans receivable and other interest-bearing
assets 1)                                            0.2          0.4
Income tax receivables                              18.5         18.3
Derivative assets                                  130.4         50.8
Accounts receivable and other
non-interest-bearing assets                        714.0        582.8
Cash and cash equivalents 1)                        79.2        179.0
Total current assets                             1,824.3      1,488.7

Total assets                                     3,038.9      2,582.6

1) Included in interest-bearing net debt




MEUR                                    31.12.2008         31.12.2007
EQUITY AND LIABILITIES

Equity attributable to the
equity holders of the Company
Share capital                                 64.3               64.2
Share premium account                         98.0               97.4
Treasury shares                              -93.6              -70.0
Translation differences                      -20.4              -29.6
Fair value reserves                          -54.5               19.9
Retained earnings                            861.6              808.7
Total equity attributable to
the equity holders of the
Company                                      855.3              890.6

Minority interest                              9.1                6.1
Total equity                                 864.4              896.7

Non-current liabilities
Loans 1)                                     440.2              433.3
Deferred tax liabilities                      43.0               38.5
Pension obligations                           33.5               35.2
Provisions                                    34.6               38.4
Derivative liabilities                        84.5               14.9
Other non-interest-bearing
liabilities                                   26.6               53.2
Total non-current liabilities                662.5              613.6

Current liabilities
Current portion of long-term
loans 1)                                       4.0                3.5
Other interest-bearing
liabilities 1)                               110.6               51.6
Provisions                                    70.4               70.8
Income tax payables                           53.2               46.9
Derivative liabilities                       129.3               17.6
Accounts payable and other
non-interest-bearing
liabilities                                1,144.4              882.0
Total current liabilities                  1,512.0            1,072.4

Total equity and liabilities               3,038.9            2,582.6

1) Included in interest-bearing net debt. In addition, the
calculation of the interest-bearing net debt includes
the hedging of cross-currency risk relating to the USD 300 million
Private Placement bond, totalling on December 31, 2008, EUR 10.2 (Dec
31, 2007: 21.9) million.




Consolidated Statement of Changes in Equity

            Attributable to the equity holders of the company
                    Share        Trans-   Fair                 Mino-
            Share    pre-  Trea- lation  value   Retai-         rity
            capi-    mium   sury diffe- reser-      ned        inte-  Total
MEUR          tal account shares rences    ves earnings  Total  rest equity
Equity on
31.12.2006   64.0    96.0  -23.9  -12.0   10.5    734.2  868.8   8.0  876.8
Gain/
loss
on cash
flow
hedges
booked
to equity *                               18.5            18.5  -0.0   18.5
Gain/
loss
on cash
flow
hedges
trans-
ferred
to IS                                     -9.1            -9.1         -9.1
Translation
differences                       -17.6                  -17.6  -0.7  -18.3
Net
income
recog-
nised
directly
in equity       -       -      -  -17.6    9.4        -   -8.2  -0.7   -8.9
Net
income
for the
period                                            136.5  136.5   1.8  138.4
Total
recognized
income
and
expenses
for the
period          -       -      -  -17.6    9.4    136.5  128.4   1.1  129.5
Dividends
paid                                              -63.2  -63.2  -0.5  -63.7
Shares
subs-
cribed
with
options       0.2     1.3                                  1.5          1.5
Acqui-
sition
of
trea-
sury
shares                     -46.1                         -46.1        -46.1
Share-
based
incen-
tives,
value of
received
services *                                          1.2    1.2          1.2
Other
changes                                                      -  -2.5   -2.5
Equity on
31.12.2007   64.2    97.4  -70.0  -29.6   19.9    808.7  890.6   6.1  896.7
Gain/
loss
on cash
flow
hedges
booked to
equity *                                -103.6          -103.6   0.4 -103.2
Gain/
loss
on cash
flow
hedges
trans-
ferred
to IS                                     29.2            29.2         29.2
Trans-
lation
diffe-
rences                              9.2                    9.2   0.6    9.8
Total
net
income
recognized
directly
in equity       -       -      -    9.2  -74.5        -  -65.3   1.0  -64.2
Net
income
for the
period                                            118.4  118.4   2.4  120.8
Total
recognized
income
and
expenses
for the
period          -       -      -    9.2  -74.5    118.4   53.2   3.4   56.6
Dividends
paid                                              -65.3  -65.3  -0.6  -66.0
Shares
subs-
cribed
with
options       0.1     0.6                                  0.7          0.7
Acquisition
of treasury
shares                     -23.6                         -23.6        -23.6
Share-
based
incentives,
value of
received
services *                                         -0.2   -0.2         -0.2
Other
changes                                                      -   0.2    0.2
Equity on
31.12.2008   64.3    98.0  -93.6  -20.4  -54.5    861.6  855.3   9.1  864.4

* Net of
tax



Consolidated Cash Flow Statement

MEUR                                            1-12/2008   1-12/2007
Net income for the period                           120.8       138.4
Depreciation and impairments                         60.1        59.8
Financing items and taxes                            52.9        64.7
Change in receivables                              -171.2      -118.4
Change in payables                                  309.3       198.5
Change in inventories                              -237.5      -107.6
Other adjustments                                    -0.6        -0.4
Cash flow from operations                           133.8       235.1

Interest received                                     4.9         5.6
Interest paid                                       -25.5       -12.0
Dividends received                                    0.0         0.0
Other financial items                                11.2       -12.5
Income taxes paid                                   -30.7       -43.6
Cash flow from operating activities                  93.7       172.6

Capital expenditure                                -113.2       -90.8
Proceeds from sales of fixed assets                  15.0        12.5
Acquisitions, net of cash                           -46.5      -172.5
Cash flow from investing activities, other
items                                               -10.5       -13.5
Cash flow from investing activities                -155.1      -264.3

Proceeds from share subscriptions                     0.7         1.5
Acquisition of treasury shares                      -23.6       -46.1
Proceeds from long-term borrowings                    0.7       274.5
Repayments of long-term borrowings                   -2.4       -29.5
Proceeds from short-term borrowings                  61.3        40.8
Repayments of short-term borrowings                 -32.0       -31.5
Dividends paid                                      -66.6       -63.8
Cash flow from financing activities                 -61.9       145.9

Change in cash                                     -123.3        54.2

Cash, cash equivalents and bank overdrafts at
the beginning of period                             167.5       114.5
Effect of exchange rate changes                       1.7        -1.1
Cash, cash equivalents and bank overdrafts at
the end of period                                    45.9       167.5

Bank overdrafts at the end of period                 33.3        11.4
Cash and cash equivalents at the end of
period                                               79.2       179.0



KEY FIGURES     1-12/2008   1-12/2007
Equity/share               EUR      13.95       14.29
Interest-bearing net debt  MEUR     477.8       325.5
Total equity/total assets  %         33.0        38.3
Gearing                    %         55.3        36.3
Return on equity           %         13.7        15.6
Return on capital employed %         12.7        16.8



Segment Reporting

Sales by geographical
segment, MEUR                        1-12/2008       1-12/2007
EMEA                                     1,901           1,677
Americas                                   556             647
Asia Pacific                               942             695
Total                                    3,399           3,018


Sales by geographical
segment, %                           1-12/2008       1-12/2007
EMEA                                      55.9 %          55.6 %
Americas                                  16.4 %          21.4 %
Asia Pacific                              27.7 %          23.0 %
Total                                    100.0 %         100.0 %


Sales, MEUR                          1-12/2008       1-12/2007
Hiab                                       907             931
Kalmar                                   1,515           1,343
MacGREGOR                                  985             748
Internal sales                              -8              -4
Total                                    3,399           3,018


Operating profit, MEUR               1-12/2008       1-12/2007
Hiab                                      49.4 *          73.8
Kalmar                                    89.6 *         105.5 **
MacGREGOR                                 83.6            59.4
Corporate administration and
other                                    -29.8           -17.5
Operating profit from
operations                               192.8 *         221.1 **
Restructuring costs                      -19.1               -
Container spreader
inspection and repair
programme                                    -           -18.0
Total                                    173.7           203.1



Operating profit, %                  1-12/2008       1-12/2007
Hiab                                     5.4 % *           7.9 %
Kalmar                                   5.9 % *           7.9 % **
MacGREGOR                                8.5 %             7.9 %
Cargotec, operating profit
from operations                          5.7 % *           7.3 % **
Cargotec                                 5.1 %             6.7 %

* Excluding restructuring costs of which business segment Hiab
accounted for EUR 14.1 million, Kalmar for
EUR 4.5 million and Corporate administration for EUR 0.3 million.
** Excluding the one-off cost of EUR 18.0 million related to a
container spreader inspection and repair programme




Orders received, MEUR                       1-12/2008    1-12/2007
Hiab                                              818          985
Kalmar                                          1,566        1,429
MacGREGOR                                       1,393        1,696
Internal orders received                           -9           -4
Total                                           3,769        4,106


Order book, MEUR                           31.12.2008   31.12.2007
Hiab                                              164          260
Kalmar                                            704          660
MacGREGOR                                       2,187        1,946
Internal order book                                -1           -1
Total                                           3,054        2,865


Capital expenditure, MEUR                   1-12/2008    1-12/2007
In fixed assets (excluding acquisitions)         75.7         52.5
In leasing agreements                             1.1          0.7
In customer financing                            35.9         37.5
Total                                           112.8         90.7


Number of employees at the end of period   31.12.2008   31.12.2007
Hiab                                            4,308        4,418
Kalmar                                          4,766        4,459
MacGREGOR                                       2,577        2,223
Corporate administration                          175           87
Total                                          11,826       11,187


Average number of employees                 1-12/2008    1-12/2007
Hiab                                            4,509        4,091
Kalmar                                          4,680        4,233
MacGREGOR                                       2,449        1,880
Corporate administration                          139           72
Total                                          11,777       10,276




Notes

Taxes in income statement
MEUR                                           1-12/2008    1-12/2007
Current year tax expense                            44.3         56.2
Change in deferred tax assets and
liabilities                                         -9.7         -3.9
Tax expense for previous years                     -10.2         -6.3
Total                                               24.4         46.0



Commitments
MEUR                                          31.12.2008   31.12.2007
Guarantees                                           0.6          2.2
Dealer financing                                     0.2          8.4
End customer financing                              11.5          7.5
Operating leases                                    48.0         47.7
Off balance sheet investment
commitments                                            -          1.2
Other contingent liabilities                         4.0          3.7
Total                                               64.3         70.6

Cargotec leases property, plant and equipment under non-cancellable
operating leases. The leases have varying terms and renewal rights.
It is not anticipated that any material liabilities will arise from
trade finance commitments.


The future minimum lease payments under
non-cancellable operating leases

MEUR                                        Dec 31, 2008 Dec 31, 2007
Less than 1 year                                    14.9         14.1
1-5 years                                           26.5         27.4
Over 5 years                                         6.7          6.3
Total                                               48.0         47.7

The aggregate operating lease expenses totalled EUR 15.6
(Jan 1-Dec 31, 2007: 13.6) million.




Fair values of
derivative financial
instruments
                                       Negative
                       Positive fair       fair   Net fair   Net fair
                               value      value      value      value
MEUR                      31.12.2008 31.12.2008 31.12.2008 31.12.2007
FX forward
contracts, cash flow
hedges                          79.6      199.0     -119.4       11.3
FX forward
contracts, non-hedge
accounted                       82.1       14.9       67.2       20.7
Cross currency and
interest rate swaps,
cash flow hedges                23.7          -       23.7       -4.9
Total                          185.4      213.8      -28.4       27.1

Non-current portion:
FX forward
contracts, cash flow
hedges                          31.3       84.5      -53.2       -1.1
Cross currency and
interest rate swaps,
cash flow hedges                23.7          -       23.7       -4.9
Non-current portion             55.0       84.5      -29.5       -6.0

Current portion                130.4      129.3        1.1       33.2

Cross currency and interest rate swaps hedge the US Private Placement
corporate bond funded in February 2007.



Nominal values of
derivative financial
instruments
MEUR                      31.12.2008 31.12.2007
FX forward contracts         3,617.5    2,610.0
Cross currency and
interest rate swaps            225.7      225.7
Total                        3,843.3    2,835.7


Acquisitions

In 2008 Cargotec made eight acquisitions of which four in Hiab's
business area.

In February, in order to strengthen its R&D capabilities, Cargotec
acquired 60 percent of Idea Designing & Consulting S.r.l., Italy. The
accounting of this business combination also includes the minority
share, which includes a redemption obligation. The acquisition was
finalised in February.

In February, Hiab made an agreement to acquire the UK-based Del
Equipment (UK) Limited and the US-based Ultron Lift Corp. These
companies manufacture tail lifts in UK and US. The acquisitions were
finalised at the end of March. In February, Hiab signed also an
agreement to acquire 70 percent of the operations of Australian
O'Leary's Material Handling Services Pty Ltd., the leading supplier
of tail lifts in Western Australia. The acquisition was closed in
April. At the end of March, Hiab concluded an agreement to acquire
the majority of the operations of the South African Bowman Cranes
(Pty) Limited. This company supplies, installs and services
truck-related load handling equipment. The acquisition was finalised
in June. In June, Hiab concluded an agreement to acquire the business
of Zepro Tailgate (1987) Limited in New Zealand. In addition to tail
lift sales, the business comprises installation, repairs, maintenance
and spare parts sales. The acquisition was closed in July.

In April, MacGREGOR signed an agreement to acquire US-based Platform
Crane Service, Inc. The acquisition was closed in May.

Kalmar acquired Argentinean Equipos y Servicios Terminales y Puertos
SRL. In addition to new equipment distribution the company provides
equipment commissioning, technical and spare part support as well as
equipment repairing and refurbishing in South America. In October
Kalmar acquired 80 percent of two Italian service companies, CVS
Technoports S.r.l. and CVS Service S.r.l.

Management estimates that the consolidated sales for the year 2008
would have been EUR 3,426 million, if the acquisitions had been
completed on Jan 1, 2008.

The table below summarises the acquisitions completed in 2008. The
business combinations of Equipos y Servicios Terminales y Puertos
SRL, CVS Technoports S.r.l. and CVS Service S.r.l. were accounted as
preliminary as the determination of fair values to be assigned to the
assets, liabilities and contingent liabilities was yet not finalised.


                                                           Assets and
                                Net fair values of        liabilities
                               identifiable assets immediately before
                                and liabilities of                the
                                      the acquired           business
                                        businesses        combination
MEUR
Other intangible assets                        4.3                0.0
Property, plant and equipment                  3.5                3.3
Inventories                                   12.9               12.7
Non-interest-bearing assets                   14.3               14.3
Interest-bearing assets and
Cash and cash equivalents                      0.9                0.9
Interest-bearing liabilities                  -6.3               -6.3
Other non-interest-bearing
liabilities                                  -21.7              -19.9
Acquired net assets                            7.8                5.0
Transaction price                             52.0
Costs related to acquisitions                  2.6
Goodwill                                      46.8
Transaction price paid in cash                45.7
Costs related to acquisitions                  2.4
Cash and cash equivalents in
acquired businesses                           -0.9
Total cash outflow from
acquisitions                                  47.2
The business combinations of Hydramarine AS, Indital Construction
Machinery Ltd, Bay Equipment Repairs Inc and Balti ES were accounted
as preliminary at the end of 2007, as the determination of fair
values was still unfinished. The accounting of these acquisitions was
finalised in 2008. It had no impact on the previous year's figures.


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 2008. All figures presented have been rounded and
consequently the sum of individual figures may deviate from the
presented sum figure.

Adoption of new interpretation starting in January 1, 2008

Starting from January 1, 2008 Cargotec has adopted the following new
interpretation by the IASB published in 2007:

- IFRIC 14, IAS 19 - The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their interaction. The adoption of the
interpretation does not have a material effect on the interim
financial statements.

In addition, Cargotec has the applied the changes to standards "IAS
39 Financial Instruments: Recognition and Measurement" and "IFRS 7
Financial Instruments: Disclosures", known as "Reclassification of
Financial Assets", given in October 2008. The amendments have no
material impact on 2008 financial statements, as Cargotec had no such
assets whose reclassification management estimated to be necessary.


Calculation of
key figures

                       Total equity attributable to the shareholders
                       of the parent company
Equity / share   =     ______________________________________________
                       Share issue adjusted number of shares
                       at the end of period (excluding treasury
                       shares)

Interest-bearing       Interest-bearing debt* - interest-bearing
net debt         =     assets

                       Total equity
Total equity /     100
total assets (%) =  x  ______________________________________________
                       Total assets - advances received


                       Interest-bearing debt* - interest-bearing
                       assets
                   100
Gearing (%)      =  x  ______________________________________________
                       Total equity


                       Net income for period
Return on equity   100
(%)              =  x  ______________________________________________
                       Total equity (average for period)


                       Income before taxes + interest and other
                       financing expenses
Return on
capital employed   100
(%)              =  x  ______________________________________________
                       Total assets - non-interest-bearing debt
                       (average for period)

                       Net income for the period attributable
                       to the shareholders of the parent company
Basic earnings /
share            =     ______________________________________________
                       Share issue adjusted weighted average number
                       of shares during the period (excluding
                       treasury shares)
 * Including cross currency hedging of the USD 300 million Private
Placement corporate bonds.



Quarterly
Figures

Cargotec                Q4/2008   Q3/2008 Q2/2008 Q1/2008 Q4/2007
Orders received  MEUR       633       967   1,013   1,155   1,214
Order book       MEUR     3,054     3,486   3,360   3,287   2,865
Sales            MEUR       924       848     901     727     868
Operating profit MEUR      35.9 *    49.6    63.1    44.2    64.3 **
Operating profit %          3.9 *     5.8     7.0     6.1     7.4 **
Basic
earnings/share   EUR       0.14      0.66    0.61    0.50    0.45


Hiab                    Q4/2008   Q3/2008 Q2/2008 Q1/2008 Q4/2007
Orders received  MEUR       157       194     238     228     254
Order book       MEUR       164       229     238     253     260
Sales            MEUR       216       209     253     230     244
Operating profit MEUR       3.7 *     9.5    18.5    17.7    19.1
Operating profit %          1.7 *     4.5     7.3     7.7     7.8


Kalmar                  Q4/2008   Q3/2008 Q2/2008 Q1/2008 Q4/2007
Orders received  MEUR       348       365     363     490     346
Order book       MEUR       704       778     790     824     660
Sales            MEUR       413       386     396     322     364
Operating profit MEUR      12.1 *    25.8    32.3    19.4    26.9 **
Operating profit %          2.9 *     6.7     8.2     6.0     7.4 **


MacGREGOR               Q4/2008   Q3/2008 Q2/2008 Q1/2008 Q4/2007
Orders received  MEUR       129       411     415     439     616
Order book       MEUR     2,187     2,480   2,334   2,211   1,946
Sales            MEUR       298       256     254     177     261
Operating profit MEUR      30.7      19.1    21.9    11.9    22.3
Operating profit %         10.3       7.5     8.6     6.7     8.6

* Excluding restructuring costs of which business segment Hiab
accounted for EUR 14.1 million, Kalmar for EUR 4.5 million and
Corporate administration for EUR 0.3 million.
** Excluding the one-off cost of EUR 18.0 million in Kalmar business
area related to a container spreader inspection and repair programme.

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