Kalmar details its driving excellence initiative as part of the recently launched strategy and long-term targets to enhance commercial and operational excellence
KALMAR CORPORATION, STOCK EXCHANGE RELEASE, 8 AUGUST 2024 AT 8:55 AM (EEST)
Kalmar details its driving excellence initiative as part of the recently launched strategy and long-term targets to enhance commercial and operational excellence
Kalmar Corporation details its driving excellence initiative targeting efficiency gains across its operations. In May 2024, as part of the demerger and listing prospectus, Kalmar Corporation announced its new strategy and plan towards sustainable and profitable growth. The driving excellence initiative emphasises the importance of continuous improvement. As previously presented, driving excellence is one of the three strategic pillars identified by Kalmar to drive its strategy forward.
The driving excellence initiative is a crucial step towards achieving Kalmar’s long-term performance targets. Detailed planning has advanced and Kalmar is planning to reach approximately EUR 50 million gross efficiency improvements by the end of 2026, in line with the aim of reaching the previously communicated 15 percent comparable operating profit margin target by 2028. These efficiency improvements enable enhanced investments in sustainable innovations and service growth.
The main measures are related to commercial and operational excellence actions that include active pricing management, supply chain and process optimisation and continuous focus on competitive operational cost-base and faster decision-making.
Kalmar has already made significant progress in implementing profitability improvement actions aimed at strengthening long-term competitiveness and is now focused on further profit generation and growth to leverage on its processes and best practices across the company. Most significant portfolio optimisation measures have been the exit decisions from the heavy cranes and the end-to-end automation businesses in 2022, which will be mainly completed during 2024.
These details do not change Kalmar’s previously announced profitability outlook, hence Kalmar reiterates its outlook published on 1 July 2024. The measures are part of Kalmar’s ongoing efforts to enhance commercial and operational effectiveness and are in line with Kalmar’s performance targets for 2028. Employees and employee representatives will be consulted in accordance with the laws and regulations.
“Making continuous improvements across Kalmar is fundamental and a key enabler in our journey towards excellence and a service driven company. We will focus on profitable and sustainable growth. Commercial and operational excellence, competitiveness and unlocking shareholder value are our key priorities. We have a strong foundation and the right capabilities in place to further invest in sustainable innovations, growing services and driving excellence,” says Sami Niiranen, President and CEO of Kalmar.
Kalmar will follow up on the progress of the Driving excellence initiative in its interim reports.
For further information, please contact:
Sakari Ahdekivi, CFO, tel. +358 50 400 3557
Carina Geber-Teir, SVP, IR, Marketing & Communications, tel. +358 40 502 4697
About Kalmar
Kalmar (Nasdaq Helsinki: KALMAR) is moving goods in critical supply chains around the world, with the vision to be the forerunner in sustainable material handling equipment and services. The company offers a wide range of industry shaping heavy material handling equipment and services to ports and terminals, distribution centres, manufacturing and heavy logistics. Headquartered in Helsinki, Finland, Kalmar operates globally in over 120 countries and employs approximately 5,200 people. In 2023, the company's sales totalled approximately EUR 2.0 billion. www.kalmarglobal.com
