Hiab Oyj

Quarterly Report • Oct 18, 2007

Cargotec's Interim Report January–September 2007

Q3

Cargotec's Interim Report for January–September 2007

• Orders received during January–September 2007 totalled EUR 2,892 (1–9/2006: 2,194) million. During the third quarter, orders received were record strong at EUR 1,028 (7–9/2006: 603) million.
• The order book continued to grow and totalled EUR 2,552 (December 31, 2006: 1,621) million on September 30, 2007.
• Sales grew in January–September by 13 percent and amounted to EUR 2,151 (1–9/2006: 1,900) million. Half of this growth was organic. During the third quarter, sales were EUR 713 (7–9/2006: 625) million.
• Cargotec completed 14 acquisitions during January–September.
• Operating profi t was EUR 156.6 (1–9/2006: 181.9) million. The comparison period includes a EUR 17.9 million capital gain from divestment of property. Operating profi t from operations in the third quarter was EUR 52.5 (7–9/2006: 52.1) million.
• Cash fl ow from operating activities before fi nancial items and taxes totalled EUR 138.8 (1–9/2006: 178.8) million.
• Net income for the reporting period was EUR 109.5 (1–9/2006: 126.8) million.
• Earnings per share were EUR 1.72 (1–9/2006: 1.97) with EUR 0.55 (7–9/2006: 0.81) attributable to the third quarter.
• The number of personnel at the end of the reporting period was 11,081 (September 30, 2006: 8,313). Acquisitions completed during the reporting period increased the number of personnel by close to 1,900 people.
• General market activity is expected to continue healthy with the exception of the U.S. load handling market. In accordance with its plans, Cargotec continues growth and effi ciency related investments, which burden the 2007 result. Thanks to the record value of orders received so far in the year the estimate for full year 2007 order intake growth has been raised to close to 30 percent. The sales growth estimate for 2007 is unchanged at approximately 15 percent, which implies strong sales growth for the fi nal quarter. Due to the growth operating profi t in euros will improve from the previous quarters. Operating profi t margin for the fi nal quarter is estimated to remain at the third quarter level.

Operating Environment perating

Demand for Hiab's load handling equipment remained very buoyant in Europe and Asia Pacifi c in July–September. Markets grew, particularly in Central Eastern Europe, Russia and China driven by growing demand for equipment from the construction, transport and recycling industries. The U.S. markets remained weak, with new truck registrations clearly below their 2006 levels and no signs of recovery in demand from the construction industry, which declined in the late spring. This market decline affected particularly demand for Hiab's truck-mounted forklifts, tail lifts and loader cranes.

Demand for Kalmar's container handling equipment was healthy. In particular, demand for reachstackers, rubber-tired gantry (RTG) cranes and empty container handlers was clearly higher year on year. Kalmar has been able to signifi cantly improve its market position in RTGs globally. Demand for straddle carriers continued healthy although the overall market is not at the strong level of 2006. Demand for heavy industrial handling equipment continued to be lively in Europe and stable elsewhere.

Demand for MacGREGOR's marine cargo fl ow systems and offshore solutions continued very high in the third quarter. The increasing number of new vessel orders in shipyards around the world boosted demand for MacGREGOR's solutions. The

markets for ship cranes, hatch covers and offshore solutions were strong. With respect to RoRo equipment for PCTCs (pure car and truck carriers), the markets remained strong while those for bulk handling equipment strengthened in Asia Pacifi c.

Demand for services developed positively during the reporting period. In Europe, there was strong demand for load handling services due to the increased number of installed equipment and high utilisation rates. In U.S. demand for load handling services weakened from the previous year. The market for container handling services continued healthy in Europe and stable elsewhere in the world. Demand for marine services remained at a healthy level in Europe and Asia. The increasing number of vessels to be delivered is positively infl uencing the market for services.

Orders Received rders

Orders received by Cargotec in January–September totalled EUR 2,892 (1–9/2006: 2,194) million. The value of the orders secured during the third quarter was record high at EUR 1,028 (7–9/2006: 603) million. The high value of orders received is especially due to orders for long ship series received by Mac-GREGOR, the deliveries of which extend for a period of several years.

Total	2,892	2,194	2,910
Internal orders received	-3	-2	-2
MacGREGOR	1,080	535	684
Kalmar	1,083 ,083	955	1,282
Hiab	731	706	946
Orders received, MEUR rders	1-9/2007	1-9/2006	1-12/2006

Hiab

Of all the orders received in January–September 2007, Hiab accounted for EUR 731 (1–9/2006: 706) million. The orders received in July–September totalled EUR 223 (7–9/2006: 207) million.

In the third quarter, Hiab received numerous small orders. During the reporting period Hiab received among others orders for cranes suitable for defence use from China and the United States. Furthermore, Hiab received a signifi cant order for 45 loader cranes which will be delivered to Mexico.

In July, Hiab and SAWO, Hiab's importer in Denmark, secured an order for 133 hooklifts and 22 loader cranes from the truck manufacturer, MAN. The hooklifts and loader cranes to be supplied to the Danish Army will be installed by SAWO. The deliveries will start in 2007 and continue into 2008. The order value will be booked evenly over the duration of the contract.

Kalmar

Of all the orders received in January–September 2007, Kalmar accounted for EUR 1,083 (1–9/2006: 955) million. The orders received in July–September totalled EUR 324 (7–9/2006: 258) million.

In August, Kalmar received an order for 10 E-One RTGs from Saigon Newport (SNP) of Vietnam. The environmentally friendly E-One RTGs will be equipped with the Smartpath® container position verifi cation system and delivered during the autumn of 2008 to SNP's container terminal. This order is a continuation of an order placed by SNP in May for 10 E-One RTGs.

In August, Kalmar also received an order for 30 straddle carriers from the Italian company, Medcenter Container Terminal SpA (MCT). The straddle carriers will be delivered in 2007–2008 to MCT's terminal in Gioia Tauro in Southern Italy.

In June, Kalmar received signifi cant straddle carrier orders from German MSC Bremerhaven and Australian Patrick Corporation. In 2007–2008 10 straddle carriers will be

delivered to MSC Bremerhaven and 15 straddle carriers to Patrick Corporation to the ports of Melbourne and Sidney.

In June, Tangier Medgate S.A. ordered 11 E-One RTGs from Kalmar. The equipment will be delivered during the fi rst half of 2008 to the port of Tangier Mediterranean in Morocco. The RTGs will be fi tted with twin-lift spreaders and the Smartrail® automatic steering and container position verifi cation system.

In March, Kalmar signed a contract with the DP World port operator regarding deliveries of 84 terminal tractors to the Jebel Ali port near the city of Dubai.

In January, Kalmar signed a contract for the delivery of 12 E-One RTGs to the Brazilian company, Santos Brasil S/A. The RTGs will be fi tted with the Smartrail® automatic steering and container position verifi cation system developed by Kalmar and delivered to the port of Santos at the turn of 2007/2008.

MacGREGOR acGREGOR

Of all the orders received in January–September 2007, Mac-GREGOR accounted for EUR 1,080 (1–9/2006: 535) million. The orders received in July–September totalled a record high level of EUR 483 (7–9/2006: 139) million.

In the third quarter of 2007, MacGREGOR received a large number of ship crane orders from China, with Shanghai Shipyard ordering 32 ship cranes to be delivered in 2009–2011 and the Yangzijiang Shipyard ordering 88 ship cranes for bulk, general cargo and container vessels. 48 ship cranes will also be delivered to the Wenchong Shipyard in 2008–2012. Furthermore, 40 ship cranes and hatch covers will be delivered during 2009–2010 to ten general cargo vessels ordered from China by the German ship owner Herman Buss.

In September, MacGREGOR also secured a RoRo equipment order from the Korean shipyard, Hyundai Mipo. The equipment, which includes different kinds of ramps, hoistable cardecks and doors, will be delivered during 2009–2011.

In August and September, MacGREGOR received signifi cant offshore equipment orders from China, Europe, the USA, Canada, Malaysia and India. The equipment, which includes, for example, mooring winches, knuckle boom offshore cranes and deck machinery equipment, will be delivered during 2008–2010.

MacGREGOR secured a large number of ship crane orders also in the second quarter. A total of 318 ship cranes were ordered to China, India and Taiwan for delivery in 2008–2011.

In June, the company received an order for hatch covers and 16 ship cranes from the Chinese shipyard, COSCO Dalian. The equipment will be delivered in 2008–2009. In May, MacGREGOR received an order for four ship board twin cranes from the Polish-Chinese shipowner, Chipolbrok. The units, the largest of their kind in the world, will be delivered in 2007–2008.

In June, the company signed a contract on the delivery of RoRo equipment for 15 vessels under construction in Korea. The equipment will be delivered in 2008–2010. In March, the RoRo division also secured contracts from several shipyards in Germany, Japan and Croatia.

Cargotec Services argotec

Cargotec strengthened its services operations during the reporting period by a new Cargotec Services operating model. The aim is to speed up services growth by better focusing resources and service knowhow between Cargotec's business areas. The majority of the services business within Hiab, Kalmar and MacGREGOR will organizationally continue as earlier. Cooperation in service concept development, spare parts sales and training of service people will be strengthened by a matrix organization, where Cargotec Services acts as an internal centre of expertise. Special focus in the operating model will be put on total maintenance of container and bulk terminals as well as signifi cant refurbishment and conversion projects. Harald de Graaf, member of Cargotec's Executive Board, is President of the Cargotec Services.

In September, the Norwegian company Fred Olsen Marine Services contracted MacGREGOR to modernise the valve system of the world's largest tanker. MacGREGOR's Service division will upgrade the remote controlled valve system and provide crew training in its operation.

In the second quarter, MacGREGOR signed a three-year maintenance agreement with the Italian company, Grimaldi Group. The agreement covers the maintenance of MacGREGOR RoRo equipment on board 26 of Grimaldi's RoRo vessels.

During the fi rst quarter of 2007, Kalmar signed long-term agreements covering the rental, servicing and customer fi nancing of its equipment in Sweden with Setra Group and Wallhamn AB, Sweden's largest private port. Kalmar will rent, maintain and fi nance 31 forklift trucks that will be delivered to 12 of Setra's sawmills in the spring of 2007. The agreement with Wallhamn AB consists of the lease of several units of Kalmar container handling equipment.

In the same connection, the parties agreed on the maintenance of Kalmar and other suppliers' equipment.

Order Book rder

Cargotec's order book totalled EUR 2,552 (December 31, 2006: 1,621) million on September 30, 2007. Of the order book, Hiab accounted for EUR 255 (215) million, Kalmar EUR 684 (593) million, and MacGREGOR EUR 1,614 (813) million. A considerable part of MacGREGOR's order book is for delivery in 2008–2012.

Order book, MEUR rder	30.9.2007	30.9.2006	31.12.2006
Hiab	255	215	215
Kalmar	684	581	593
MacGREGOR	1,614	798	813
Total	2,552	1,594	1,621

Sales

Cargotec's sales grew in January–September by 13 percent and totalled EUR 2,151 (1–9/2006: 1,900) million. Half of the growth was organic. The sales impact of acquisitions completed in the past 12 months was approximately EUR 130 million in January–September 2007.

Despite the continued tight component situation, Cargotec's business areas have succeeded in achieving the targeted growth in assembly capacity. However, the strong demand for trucks in Europe has resulted in delivery times for trucks lengthening considerably, which in turn delays installation schedules. This has an adverse effect on the delivery time of Hiab's products to end customers and limits Hiab's sales growth.

Cargotec's sales for July–September 2007 amounted to EUR 713 (7–9/2006: 625) million. Hiab's sales in the third quarter amounted to EUR 202 (7–9/2006: 208) million, Kalmar's sales were EUR 326 (290) million and MacGREGOR's sales EUR 187 (127) million.

Sales, MEUR ales,	1-9/2007	1-9/2006	1-12/2006
Hiab	687	675	914
Kalmar	979	883	1 203
MacGREGOR	487	344	482
Internal sales	-2	-1	-2
Total	2,151	1,900	2,597

Sales for services increased by 28 percent on the corresponding period in 2006 and amounted to EUR 537 (1–9/2006: 418) million, which is 25 (22) percent of total sales. Services accounted for 16 (1–9/2006: 15) percent of sales at Hiab, 30 (26) percent at Kalmar, and 27 (27) percent at MacGREGOR in January–September 2007.

Financial Result inancial

Cargotec's operating profi t from operations for January– September 2007 was EUR 156.6 (1–9/2006: 164.0) million, representing 7.3 (8.6) percent of sales. Operating profi t from operations for the third quarter was EUR 52.5 (7–9/2006: 52.1) million, equal to 7.4 (8.3) percent of sales. Hiab accounted for EUR 13.7 (17.4) million of third quarter operating profi t from operations, Kalmar for EUR 27.8 (27.5) million, and MacGREGOR for EUR 15.0 (9.9) million.

Hiab's result was weakened by a signifi cant underutilisation of capacity resulting from the weak demand situation in the U.S. In Europe, profi tability during the year has improved but the July–September result was affected by the holiday season. Kalmar continued to make product development investments according to plan, which affected the result compared to the previous year. However, compared to the second quarter, Kalmar's profi tability clearly improved during the third quarter. MacGREGOR's offshore division result in the third quarter was burdened less than anticipated by the cost impact of the purchase price allocation treatment.

Operating profi t for January–September includes a EUR 4.6 (1–9/2006: 1.8) million cost impact from the purchase price allocation treatment of acquisitions, with EUR 2.2 (7–9/2006: 0.9) million attributable to the third quarter. The full year estimate on the cost impact of the allocation treatment on Cargotec's operating profi t remains at approximately EUR 10 million.

Operating profi t during the reporting period was EUR 156.6 (1–9/2006: 181.9) million. The comparison period includes a EUR 17.9 million capital gain from divestment of property. Net income for the period was EUR 109.5 (1–9/2006: 126.8) million and earnings per share were EUR 1.72 (1.97).

Balance Sheet, Financing and Cash Flow alance

On September 30, 2007, Cargotec's net working capital amounted to EUR 249 (December 31, 2006: 209) million. Tangible assets on the balance sheet were EUR 255 (218) million and intangible assets EUR 755 (581) million.

Cash fl ow from operating activities before fi nancial items and taxes for January–September 2007 totalled EUR 138.8 (1–9/2006: 178.8) million and that for July–September EUR 55.5 (7–9/2006: 65.8) million.

Net debt on September 30, 2007 was EUR 365 (December 31, 2006: 107) million. Total equity/total assets ratio was 40.2 (47.6) percent while gearing was 41.6 (12.3) percent. The purchase of own shares during the third quarter for close to EUR 40 million raised gearing.

Cargotec had EUR 467 million of committed credit facilities on September 30, 2007. These facilities were unused. The EUR 225 million (USD 300 million) Private Placement placed in December 2006 with U.S. institutional investors was funded in February 2007. 14 U.S. institutional investors participated in the transaction. The placement has been hedged through Cross Currency and Interest Rate Swaps into a fi xed interest rate euro loan. Its interest rate varies between 4.525 and 4.756 percent depending on the maturity, which varies between 7 and 12 years.

New Products and Product Development ew

In January–September 2007, Cargotec's research and product development expenditure was EUR 33.2 (1–9/2006: 22.1) million, representing 1.5 (1.2) percent of sales.

During the reporting period, Hiab introduced two new loader crane models. The HIAB XS 211 loader crane complements the mid-sized loader crane range, for which demand is highest in most markets. The company also introduced the HIAB XS 1055, the largest Hiab loader crane by capacity, which provides users with the longest reach and highest lifting capacity delivered by any HIAB crane in the marketplace today.

Kalmar continued the development of large cranes and automation solutions. The acquisition of the Dutch ACT B.V. strengthened Kalmar's software knowhow, technology base and resources considerably. Work continues to develop environmentally friendly hybrid solutions in a second twoyear terminal tractor development project, which is run together with the U.S. Environmental Protection Agency in the ports of New York and New Jersey.

MacGREGOR introduced in the third quarter a new lift-away, multi-panel hatch cover model enabling the user to lift fi ve hatch covers at a time, instead of lifting them one by one. Furthermore, the company continued the joint product development of its RoRo and offshore solutions.

Capital Expenditure apital

Cargotec's capital expenditure for January-September, excluding acquisitions and customer fi nancing, totalled EUR 38.0 (1–9/2006: 30.8) million. Customer fi nancing investments were EUR 23.5 (14.5) million.

Hiab has decided to combine its loader crane and forestry crane product lines as of January 2008. This organisational change will improve and strengthen the use of shared resources in crane product development, manufacturing and marketing. The Crane product line comprises the manufacturing of loader cranes, forestry cranes and recycling cranes in fi ve production units in Europe and Asia.

Hiab has adapted the operations of its load handling equipment production units in the United States and Ireland due to weakened demand in the U.S. markets.

During the third quarter, MacGREGOR continued to develop new cooperation partners to meet the signifi cant growth in its ship crane order book. Building work for a hatch cover production facility is ongoing in Nantong, China together with a local partner.

Acquisitions cquisitions

Cargotec completed 14 acquisitions in January–September 2007. In February, a contract was signed to acquire the Indian company, Indital Construction Machinery Ltd. The acquisition was fi nalised in April and gives Cargotec a manufacturing presence in India while supporting the sales activities of all three of Cargotec's business areas in the region. Cargotec has a 95 percent holding in Indital.

As part of strengthening Cargotec's presence in India Kalmar bought the remaining shares (49 percent) in Kalmar India in September 2007.

In December 2006, Cargotec announced its plan to acquire the Italian company, CVS Ferrari. The German competition authority announced in August 2007 that it had ruled against the acquisition on the basis of it being anticompetitive. Cargotec is investigating the opportunity to appeal the decision.

Hiab's Acquisitions iab's

In July, Hiab signed an agreement to acquire a service company in Florida, USA. Bay Equipment Repairs Inc. is a long-term service partner of Hiab, and most of its customers are Hiab customers. Bay Equipment Repairs had sales of approximately EUR 1 million in 2006 and the company employs 13 persons.

In May, Hiab signed a contract to acquire the Estonian company, Balti ES, which manufactures steel structures and components. Balti ES employs approximately 600 people and posted sales of approximately EUR 14 million in 2006. Finalised in June, the acquisition supports both Hiab's and Kalmar's increasing demand for components.

In January, Hiab signed an agreement of intent to acquire the sales, service and installation units of its current distributor, Berger, in the Czech Republic, Slovakia, Hungary and Croatia. The acquisition was fi nalised in May. The annual sales of the acquired operations are approximately EUR 16 million, and the units employ approximately 75 people.

In January, a contract was signed to acquire a majority holding in BG Crane Pty. Ltd., the Australian importer of Hiab equipment, previously an associated company. The deal was fi nalised in February. The company employs approximately 100 people and had sales of approximately EUR 20 million in 2006.

Kalmar's Acquisitions almar's

In August, Kalmar made an agreement to acquire Advanced Cargo Transshipment B.V. (ACT), an automation and software producer based in the Netherlands. The acquisition will increase Kalmar's resources in automated port terminal R&D. ACT specialises in developing and marketing equipment navigation control and terminal operation control hardware and software.

In April, Kalmar signed a contract to acquire the remaining minority share in Kalmar Asia Pacifi c Ltd. Kalmar now fully owns the company.

In February, Kalmar acquired the U.S. based service company Port Equipment Service, Inc. (PES). PES employs 56 people and had sales of approximately EUR 4 million in 2006. This acquisition strengthened Kalmar's service business, particularly in ports and railroad terminals on the U.S. East Coast.

In January, Kalmar acquired the Slovenian service company, Tagros d.o.o. Tagros services container handling equipment and forklifts. This acquisition is enabling Kalmar to build up its service and sales activities in Slovenia and the Northern Balkan Peninsula. Tagros employs approximately 35 people and had sales of approximately EUR 2 million in 2006.

In January, the company also agreed to acquire Truck och Maskin i Örnsköldsvik AB in Northern Sweden. The acquisition was fi nalised in February and has strengthened Kalmar's sales and service network for industrial customers in the wood handling segment. Truck och Maskin employs approximately 100 people and had sales of approximately EUR 14 million in the accounting period that ended on April 30, 2006.

In December 2006, a contract was signed to acquire Kalmar's Spanish distributor, Kalmar España. The acquisition was fi nalised in April.

MacGREGOR's Acquisitions acGREGOR's

During the fi rst half of the year, MacGREGOR expanded its operations into the offshore segment.

In March, MacGREGOR agreed to acquire Norwegian Hydramarine AS and Singaporean Plimsoll Corporation Pte Ltd. The acquisitions were fi nalised in April. Hydramarine specialises in the development of sub sea load handling equipment such as cranes. In 2006, Hydramarine had sales of EUR 63 million and employed 150 people. Plimsoll Corporation Pte Ltd is the leading supplier of equipment for oil drilling and gas vessels and other types of ships in the Asia Pacifi c region. Plimsoll's sales in 2006 totalled approximately EUR 43 million. The company employs approximately 600 people. MacGREGOR acquired 90 percent of both Hydramarine and Plimsoll with the remaining shares being owned by the employees.

In June, MacGREGOR established a new division, MacGREGOR Offshore. The division consists of Hydramarine and Plimsoll and concentrates on achieving synergy benefi ts and expanding the business. The new division employs more than 700 people.

In May, a contract was signed to acquire Vestnorsk Hydraulikkservice AS (VNH) of Norway. VNH specialises in the maintenance of hydraulic systems and turnkey deliveries of offshore solutions for oil drilling support vessels and other types of ships. VNH's sales amount to approximately EUR 5 million. The company employs 21 people. The acquisition was fi nalised in June.

Personnel ersonnel

At the end of the reporting period, Cargotec employed 11,081 (September 30, 2006: 8,313) people. Acquisitions during the period increased the number of personnel by close to 1,900 people. Hiab employed 4,405 (3,615) people, Kalmar 4,431 (3,543) and MacGREGOR 2,162 (1,109).

Of Cargotec's total employees, 14 percent were located in Finland, 22 percent in Sweden and 30 percent in the rest of Europe. North and South American personnel represented 11 percent, Asia Pacifi c 22 percent and the rest of the world 1 percent of total employees.

Shares and Stock Options hares

Cargotec's share capital on September 30, 2007 was EUR 64,137,138 (December 31, 2006: 64,046,460). The share capital was increased during the reporting period through stock options. On September 30, 2007, the number of Cargotec's listed class B shares totalled 54,611,049 while that of its unlisted class A shares totalled 9,526,089. The remaining 2005A and 2005B stock options may be used to subscribe for a further 271,872 class B shares, thereby increasing the share capital by EUR 271,872. Of that amount a total of 2,850 class B shares were subscribed in September 2007 which will be entered into the Finnish Trade Register by October 31, 2007.

During January-September 2007, the trading volume of Cargotec class B shares totalled around 51 million at a total value of approximately EUR 2,167 million. The closing price for class B shares on September 30, 2007 was EUR 34.46. The highest price during the reporting period was EUR 49.83 and the lowest EUR 33.15. The market capitalisation, with the unlisted class A shares valued at the average price of the class B shares on the last day of the period, amounted to EUR 2,151 million, excluding class B treasury shares held by the company.

Shares directly or indirectly owned by Cargotec's Executive Board members has increased during the year. As of September 30, 2007 the Executive Board owned 136,314 class B shares, which represent 0.2 percent of the shares of the company.

Cargotec's Financial Targets and Incentive Program argotec's for Key Managers or

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

Cargotec's fi nancial targets are the following: annual net sales growth exceeding 10 percent (incl. acquisitions), raising the operating profi t margin to 10 percent, and maintaining the gearing below 50 percent. The targets have been set for the years 2007–2011.

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

Potential rewards from the incentive program during 2007–2011 are based on achievement of fi ve-year net sales and operating profi t targets as defi ned in Cargotec's strategy. The rewards will be paid during 2009–2012 in both class B shares and cash. The cash portion is dedicated to cover possible taxes and tax-related payments resulting from the reward. The shares distributed as reward will contain a prohibition to hand over or sell the shares within one year of the end of an earnings period with the exception of the fi nal earnings period when no prohibitions are included. The maximum amount to be paid out as shares is 387,500 class B shares currently held by the company as treasury shares.

Changes in Cargotec's Executive Board hanges

Pekka Vauramo, M.Sc. (Eng.) was appointed Kalmar's President as of October 1, 2007. Vauramo started at Cargotec on September 1, 2007. Kalmar's previous President Christer Granskog will retire by the end of 2007 in accordance with his service contract.

Decisions Taken at Cargotec Corporation's Annual ecisions General Meeting eneral

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

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

The number of members of the Board of Directors was confi rmed at six according to the proposal of Cargotec's Nomination and Compensation Committee. Carl-Gustaf Bergström, Henrik Ehrnrooth, Tapio Hakakari, Ilkka Herlin, Peter Immonen and Karri Kaitue were re-elected as members of the Board of Directors.

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

Authorizations Granted by the Annual General uthorizations Meeting

The Annual General Meeting authorized the Board of Directors of Cargotec to decide to repurchase the Company's own shares with assets distributable as profi t. The shares may be repurchased in order to develop the capital structure of the Company, fi nance or carry out possible acquisitions, implement the Company's sharebased incentive plans, or to be transferred for other purposes or to be cancelled.

Altogether no more than 6,400,000 own shares may be repurchased, of which no more than 952,000 are class A shares and 5,448,000 are class B shares. The above-mentioned amounts include the 704,725 class B shares already in the Company's possession. This authorization remains in effect for a period of 18 months from the date of decision of the Annual General Meeting.

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

Organization of the Board of Directors rganization

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

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

Share Repurchases hare

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

The maximum amount of repurchased own shares will be less than 10 percent of the Company's share capital and total voting rights.

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

In the third quarter, a total of one million own class B shares were repurchased. Altogether, Cargotec holds 1,704,725 class B shares in treasury.

Short-term Risks and Uncertainties hort-term

Cargotec's principal short-term risks and uncertainties are related to the U.S. economic development and availability of components.

The present U.S. economic uncertainty and the sharp decline in construction activity in the U.S. are refl ected in the demand for Cargotec's load handling equipment. If the economic uncertainty continues there is a risk of it spreading more widely to the U.S. economy, which could have an impact on other Cargotec customer segments as well.

Cargotec has outsourced a signifi cant proportion of its component production and part of its assembly operations. Cargotec strives to anticipate its component needs so that subcontractors can fl exibly meet demand. Due to generally high demand for many of the components used by Cargotec, their availability remains tight. Additionally, the high demand for trucks in Europe can have an adverse impact on the delivery schedules of Hiab products during the remainder of the year.

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

Outlook

General market activity is expected to continue healthy with the exception of the U.S. load handling market. In accordance with its plans, Cargotec continues growth and effi ciency related investments, which burden the 2007 result.

Thanks to the record value of orders received so far in the year the estimate for full year 2007 order intake growth has been raised to close to 30 percent. The sales growth estimate for 2007 is unchanged at approximately 15 percent, which implies strong sales growth for the fi nal quarter. Due to the growth operating profi t in euros will improve from the previous quarters. Operating profi t margin for the fi nal quarter is estimated to remain at the third quarter level.

Helsinki, October 18, 2007

Cargotec Corporation Board of Directors

This interim report is unaudited.

Cargotec's Interim Report for January-September 2007

Condensed Consolidated Income Statement

MEUR	7-9/2007		7-9/2006		1-9/2007		1-9/2006		1-12/2006
Sales	713.4		624.8		2,150.7		1,899.9		2,597.1
Cost of goods sold	-562.0		-497.3		-1,687.6		-1,493.0		-2,042.7
Gross profi t	151.3		127.5		463.1		406.9		554.4
Gross profi t, %	21.2	%	20.4	%	21.5	%	21.4	%	21.3	%
Gain on the sale of property	-		17.9		-		17.9		17.8
Costs and expenses	-84.6		-65.3		-266.8		-213.9		-292.2
Depreciation	-14.3		-10.1		-39.7		-29.0		-40.5
Operating profi t	52.5		70.0		156.6		181.9		239.5
Operating profi t, %	7.4	%	11.2	%	7.3	%	9.6	%	9.2	%
Share of associated companies' income	0.1		0.3		0.2		0.8		0.9
Financing income and expenses	-4.3		-1.0		-12.1		-6.5		-8.4
Income before taxes	48.2		69.3		144.7		176.2		232.0
Income before taxes, %	6.8	%	11.1	%	6.7	%	9.3	%	8.9	%
Taxes	-13.6		-17.2		-35.2		-49.4		-65.9
Net income for the period	34.6		52.1		109.5		126.8		166.1
Net income for the period, %	4.9	%	8.3	%	5.1	%	6.7	%	6.4	%
Attributable to:
Equity holders of the Company	34.3		51.4		108.8		125.4		163.9
Minority interest	0.3		0.7		0.7		1.4		2.2
Total	34.6		52.1		109.5		126.8		166.1
Earnings per share for profi t attributable
to the equity holders of the Company:
Basic earnings per share, EUR	0.55		0.81		1.72		1.97		2.57
Diluted earnings per share, EUR	0.55		0.80		1.72		1.96		2.56
Adjusted basic earnings per share, EUR	-		0.60	*	-		1.76	*	2.37	*

* Excluding gain on the sale of property after taxes

Condensed Consolidated Balance Sheet

ASSETS

MEUR	30.9.2007	30.9.2006	31.12.2006
Non-current assets on-current
Intangible assets	754.8	556.5	580.5
Tangible assets	254.9	194.6	217.6
Loans receivable and other interest-bearing assets 1)	2.2	0.4	0.1
Investments	4.1	3.9	4.0
Assets held for sale	-	-	-
Non-interest-bearing assets	64.5	59.2	58.6
Total non-current assets otal	1,080.5	814.6	860.8
Current assets urrent
Inventories	660.1	509.5	528.9
Loans receivable and other interest-bearing assets 1)	0.4	0.2	0.3
Accounts receivable and other non-interest-bearing assets	574.2	429.3	473.7
Cash and cash equivalents 1)	94.0	122.5	124.3
Total current assets	1,328.8	1,061.5	1,127.2
Total assets otal	2,409.2	1,876.1	1,988.0

EQUITY AND LIABILITIES QUITY

MEUR	30.9.2007	30.9.2006	31.12.2006
Equity
Shareholders' equity	871.6	846.6	868.8
Minority interest	5.2	7.5	8.0
Total equity	876.7	854.1	876.8
Non-current liabilities
Loans 1)	408.3	191.2	195.0
Deferred tax liabilities	35.8	22.1	30.5
Provisions	21.8	20.9	30.3
Pension benefi t and other non-interest-bearing liabilities	67.1	53.8	55.2
Total non-current liabilities	533.0	288.0	311.0
Current liabilities
Loans 1)	53.0	25.1	37.2
Provisions	45.0	40.4	42.6
Accounts payable and other non-interest-bearing liabilities	901.5	668.5	720.4
Total current liabilities	999.5	734.0	800.2
Total equity and liabilities	2,409.2	1,876.1	1,988.0

1) Included in interest-bearing net debt

Consolidated Statement of Changes in Equity

Attributable to the equity holders of the company

		Share			Fair
	Share	premium	Treasury	Translation	value	Retained		Minority	Total
MEUR	capital	account	shares	differences	reserve	earnings	Total	interest	equity
Equity on 31.12.2005	63.9	95.1	-5.0	4.9	-10.3	611.4	760.0	7.2	767.2
Cash fl ow hedges					13.0		13.0	0.0	13.0
Translation differences				-11.2			-11.2	-0.6	-11.8
Share-based incentives, value of
received services						0.1	0.1		0.1
Total net income recognised directly in
equity	-	-	-	-11.2	13.0	0.1	1.9	-0.6	1.3
Net income for the period						125.4	125.4	1.4	126.8
Total recognised income and expenses
for the period	-	-	-	-11.2	13.0	125.5	127.3	0.8	128.1
Dividends paid						-41.3	-41.3		-41.3
Shares subscribed with options	0.1	0.6					0.7		0.7
Acquisition of treasury shares			0.0				0.0		0.0
Other changes							-	-0.5	-0.5
Equity on 30.9.2006	64.0	95.7	-5.0	-6.3	2.7	695.6	846.6	7.5	854.1

Equity on 31.12.2006	64.0	96.0	-23.9	-12.0	10.5	734.2	868.9	8.0	876.8
Gain/loss on cash fl ow hedges booked
to equity					12.0		12.0	0.0	12.0
Gain/loss on cash fl ow hedges
transferred to IS					-3.7		-3.7		-3.7
Translation differences				-14.1			-14.1	-0.5	-14.5
Share-based incentives, value of
received services						1.3	1.3		1.3
Total net income recognised directly in
equity	-	-	-	-14.1	8.3	1.3	-4.4	-0.5	-4.9
Net income for the period						108.8	108.8	0.7	109.5
Total recognised income and expenses
for the period	-	-	-	-14.1	8.3	110.1	104.4	0.2	104.6
Dividends paid						-63.2	-63.2	-0.4	-63.6
Shares subscribed with options	0.1	0.7					0.8		0.8
Acquisition of treasury shares			-39.2				-39.2		-39.2
Other changes							0.0	-2.6	-2.6
Equity on 30.9.2007	64.1	96.7	-63.1	-26.1	18.9	781.0	871.6	5.2	876.7

Condensed Consolidated Cash Flow Statement

MEUR	1-9/2007	1-9/2006	1-12/2006
Net income for the period	109.5	126.8	166.1
Capital gains	-	-17.9	-17.8
Depreciation	39.7	29.0	40.5
Other adjustments	47.1	55.2	73.7
Change in working capital	-57.5	-14.3	-12.7
Cash fl ow from operations	138.8	178.8	249.8
Cash fl ow from fi nancial items and taxes	-56.5	-43.4	-51.1
Cash fl ow from operating activities	82.3	135.4	198.7
The gain from the sale of property	-	31.9	31.3
Acquisitions	-169.3	-53.0	-89.1
Cash fl ow from investing activities, other items	-65.7	-42.1	-58.0
Cash fl ow from investing activities	-235.0	-63.2	-115.8
Acquisition of treasury shares	-39.2	0.0	-18.9
Proceeds from share subscriptions	0.8	0.7	1.1
Dividends paid	-63.9	-41.3	-41.3
Proceeds from long-term borrowings	226.9	0.3	0.1
Repayments of long-term borrowings	-10.8	-16.8	-25.9
Proceeds from short-term borrowings	20.1	0.4	15.9
Repayments of short-term borrowings	-14.4	-8.9	-7.6
Cash fl ow from fi nancing activities	119.6	-65.6	-76.6
Change in cash	-33.1	6.6	6.3
Cash, cash equivalents and bank overdrafts at the beginning of period	114.5	111.2	111.2
Effect of exchange rate changes	-1.0	-1.8	-3.0
Cash, cash equivalents and bank overdrafts at the end of period	80.4	116.0	114.5
Bank overdrafts at the end of period	13.6	6.5	9.8
Cash and cash equivalents at the end of period	94.0	122.5	124.3

Key Figures ey

		1-9/2007	1-9/2006	1-12/2006
Equity/share	EUR	13.96	13.27	13.72
Interest-bearing net debt	MEUR	364.6	93.2	107.5
Total equity/total assets	%	40.2	49.0	47.6
Gearing	%	41.6	10.9	12.3
Return on equity	%	16.7	20.9	20.2
Return on capital employed	%	17.6	23.9	23.1

Segment Reporting

Sales by geographical segment, MEUR	1-9/2007	1-9/2006	1-12/2006
EMEA	1,187	991	1,368
Americas	498	552	720
Asia Pacifi c	466	356	509
Total	2,151	1,900	2,597

Sales by geographical segment, %	1-9/2007		1-9/2006		1-12/2006
EMEA	55.2	%	52.2	%	52.7 %
Americas	23.2	%	29.1	%	27.7 %
Asia Pacifi c	21.7	%	18.8	%	19.6 %
Total	100.0	%	100.0	%	100.0 %

Sales, MEUR	1-9/2007	1-9/2006	1-12/2006
Hiab	687	675	914
Kalmar	979	883	1,203
MacGREGOR	487	344	482
Internal sales	-2	-1	-2
Total	2,151	1,900	2,597

Operating profi t, MEUR	1-9/2007	1-9/2006	1-12/2006
Hiab	54.5	63.3	86.0
Kalmar	78.6	83.5	111.7
MacGREGOR	37.0	26.2	35.9
Corporate administration and other	-13.5	-9.0	-11.9
Operating profi t from operations	156.6	164.0	221.7
Gain on the sale of property	-	17.9	17.8
Total	156.6	181.9	239.5

Operating profi t, %	1-9/2007		1-9/2006		1-12/2006
Hiab	7.9	%	9.4	%	9.4 %
Kalmar	8.0	%	9.5	%	9.3 %
MacGREGOR	7.6	%	7.6	%	7.5 %
Cargotec, operating profi t from operations	7.3	%	8.6	%	8.5 %
Cargotec	7.3	%	9.6	%	9.2 %

Orders received, MEUR	1-9/2007	1-9/2006	1-12/2006
Hiab	731	706	946
Kalmar	1,083	955	1,282
MacGREGOR	1,080	535	684
Internal orders received	-3	-2	-2
Total	2,892	2,194	2,910

Order book, MEUR	30.9.2007	30.9.2006	31.12.2006
Hiab	255	215	215
Kalmar	684	581	593
MacGREGOR	1,614	798	813
Internal order book	0	0	0
Total	2,552	1,594	1,621

Capital expenditure, MEUR	1-9/2007	1-9/2006	1-12/2006
In fi xed assets (excluding acquisitions)	37.7	30.3	46.1
In leasing agreements	0.3	0.5	0.5
In customer fi nancing	23.5	14.5	22.2
Total	61.5	45.3	68.8

Number of employees at the end of period	30.9.2007	30.9.2006	31.12.2006
Hiab	4,405	3,615	3,647
Kalmar	4,431	3,543	3,705
MacGREGOR	2,162	1,109	1,117
Corporate administration	83	46	47
Total	11,081	8,313	8,516

Average number of employees	1-9/2007	1-9/2006	1-12/2006
Hiab	3,981	3,547	3,571
Kalmar	4,159	3,337	3,415
MacGREGOR	1,773	955	994
Corporate administration	68	45	46
Total	9,981	7,884	8 ,026

Notes

Taxes in income statement

MEUR	1-9/2007	1-9/2006	1-12/2006
Current year tax expense	42.3	57.0	66.7
Deferred tax expense	-0.7	-6.3	-0.3
Tax expense for previous years	-6.4	-1.4	-0.5
Total	35.2	49.4	65.9

Commitments

MEUR	30.9.2007	30.9.2006	31.12.2006
Guarantees	2.4	0.2	0.5
Dealer fi nancing	5.6	10.8
End customer fi nancing	5.9	7.2	6.7
Operating leases	50.0	31.0	38.1
Other contingent liabilities	5.3	3.9	3.9
Total	69.2	53.1	57.7

Fair values of derivative fi nancial instruments

	Positive	Negative	Net	Net	Net
	fair value	fair value	fair value	fair value	fair value
MEUR	30.9.2007	30.9.2007	30.9.2007	30.9.2006	31.12.2006
FX forward contracts, cash fl ow hedges	35.3	15.4	19.9	3.6	18.6
FX forward contracts, non-hedge accounted	9.4	3.9	5.5	1.2	-9.1
Interest rate swaps, non-hedge accounted	-	-	-	-0.1	0.0
Cross currency and interest rate swaps, cash
fl ow hedges	0.0	5.2	-5.2	-	-0.7
Total	44.7	24.5	20.2	4.7	8.8
Non-current portion:
FX forward contracts, cash fl ow hedges	9.8	5.0	4.8	0.0	2.7
Cross currency and interest rate swaps, cash
fl ow hedges	0.0	5.2	-5.2	-	-0.7
Non-current portion	9.8	10.2	-0.4	0.0	2.0
Current portion	34.9	14.3	20.6	4.7	6.8

Nominal values of derivative fi nancial instruments

MEUR	30.9.2007	30.9.2006	31.12.2006
FX forward contracts	2,306.4	1,665.3	1,752.7
Interest rate swaps	-	10.0	10.0
Cross currency and interest rate swaps	225.7	-	225.7
Total	2,532.1	1,675.3	1,988.4

Acquisitions 2007

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

In January, Hiab made an agreement to acquire the majority of its Australian importer, BG Crane Pty. Ltd. The acquisition was fi nalised in February. In January, Hiab also signed an agreement of intent to acquire the sales, service and installation units of its current distributor Berger in the Czech Republic, Slovakia, Hungary and Croatia. The acquisition was fi nalised in May. In May, Hiab signed a contract to acquire the Estonian company Balti ES. The acquisition was fi nalised in June. In July, Hiab signed an agreement to acquire Bay Equipment Repairs Inc, a service company based in Florida, USA.

In January, Kalmar signed agreement to acquire Tagros d.o.o., a Slovenia-based service company. In January, Kalmar signed also agreement to acquire Truck och Maskin i Örnsköldsvik AB, a Swedish company. The acquisition was fi nalised in February. In February, Kalmar made an agreement to acquire the assets and business of Port Equipment Service, Inc., a U.S. based service company. In February, a contract was signed to acquire the Indian company Indital Construction Machinery Ltd. The acquisition was fi nalised in April. In April, Kalmar signed a contract to gain full control of Kalmar Asia Pacifi c Ltd by acquiring the remaining minority share. In December 2006, a contract was signed to acquire Kalmar's Spanish distributor Kalmar España. The acquisition was fi nalised in April. In August, Kalmar made an agreement to acquire Advanced Cargo Transshipment B.V., an automation and software producer based in the Netherlands. In September, Kalmar acquired the remaining minority share (49 percent) of Kalmar India Pvt. Ltd.

In March, MacGREGOR agreed to acquire 90 percent of the Norwegian Hydramarine AS. The acquisition was fi nalised in April. In March, MacGREGOR also signed a contract to acquire 90 percent of the Singaporean company Plimsoll Corporation Pte Ltd. The acquisition was fi nalised in April. The accounting of these two business combinations includes also the minority share with the redemption obligation. The debt-free acquisition price of these two business combinations was approximately EUR 122 million and the goodwill recognised according to the preliminary calculations was EUR 115 million. In May, a contract was signed to acquire Vestnorsk Hydraulikkservice AS of Norway. The acquisition was fi nalised in June.

Management estimates that the consolidated sales for January 1–September 30, 2007 would have been approximately EUR 2,190 million, if the acquisitions had occurred on January 1, 2007.

The table below summarises the acquisitions in January–September 2007. The business combinations were accounted as preliminary as the determination of fair values to be assigned to the assets, liabilities and contingent liabilities were not yet fi nalised.

	Net fair values of identifi able	Assets and liabilities immediately before the business combination
	assets and liabilities of
MEUR	the acquired businesses
Other intangible assets	13.4	0.2
Property, plant and equipment	25.3	25.0
Inventories	40.4	40.4
Non-interest-bearing assets	57.2	57.2
Interest-bearing assets and Cash and cash equivalents	7.0	7.0
Interest-bearing liabilities	-18.2	-18.2
Other non-interest-bearing liabilities	-97.4	-92.8
Acquired net assets	27.8	18.9
Transaction price	193.5
Costs related to acquisitions	3.2
Goodwill	168.9
Transaction price paid in cash	166.7
Costs related to acquisitions	3.2
Net cash and cash equivalents in acquired businesses	-2.5
Total cash outfl ow from acquisitions	167.3

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 fi nancial statements of 2006. All fi gures presented have been rounded and consequently the sum of individual fi gures may deviate from the presented sum fi gure.

Adoption of new or revised IFRS standards and interpretations starting in January 1, 2007 doption

Starting from January 1, 2007 Cargotec has adopted the following new and amended standards and interpretations by the IASB published in 2006:

• IFRS 7, Financial Instruments: Disclosures
• IAS 1 Amendment, Capital Disclosures
• IFRIC 10, Interim Financial Reporting and Impairment
• IFRIC 11, IFRS 2 Group and Treasury Share Transactions

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

Reclassifi eclassifi cation of balance sheet items items

Division of derivative assets and liabilities into current and non-current has been taken into use in annual fi nancial statements of 2006. Derivative instruments, for which hedge accounting is applied, and for which the underlying cash fl ow matures after twelve months, are included in non-current assets and liabilities, other derivative instruments are included in current assets and liabilities. In previous fi nancial statements all derivatives have been included in current assets and liabilities. The comparative fi gures of September 30, 2006 have been restated accordingly.

Retrospective adjustment of fi etrospective fi nal accounting of the acquisitions acquisitions

In fi nancial statements of 2006 the impact of fi nal accounting of the acquisitions of 2005 were recognised retrospectively for the period January 1–December 31, 2006. The comparative fi gures of September 30, 2006 have been restated accordingly.

Share-based payments hare-based

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

In January 2007, Cargotec published a new share-based incentive scheme for the company's key managers for the years 2007–2011. The rewards will be paid during 2009–2012 in both class B shares and cash. The cash portion is dedicated to cover possible taxes and tax-related payments resulting from the total reward. Shares distributed as reward will contain a prohibition to hand over or sell the shares within one year of the end of an earnings period with the exception of the fi nal earnings period when no prohibitions are included. The shares will be lost if the holder leaves the company before the prohibition period ends. At the end of September 2007, the earnings period 2007–2008 involves 67 persons. If they were to receive the maximum number of shares in accordance with the scheme, a total of 148,925 Cargotec's class B shares, their shareholding obtained via the program would amount to 0.1 percent of the total voting rights of Cargotec's class A and B shares. The incentive scheme is booked and valued according to the Share-based payments accounting principle presented in the annual fi nancial statements of 2006.

Calculation of Key Figures

			Total equity attributable to the shareholders of the parent company ____________ Share issue adjusted number of shares at the end of period (excluding treasury shares)
Equity / share	=
Interest-bearing net debt	=		Interest-bearing debt - interest-bearing assets
Total equity / total assets (%)			Total equity
	=	100 x	____________ Total assets - advances received
Gearing (%)	=	100 x	Interest-bearing debt - interest-bearing assets ____________ Total equity
Return on equity (%)	=	100 x	Net income for period ____________ Total equity (average for period)
Return on capital employed (%)	=	100 x	Income before taxes + interest and other fi nancing expenses ____________ Total assets - non-interest-bearing debt (average for period)
Basic earnings / share	=		Net income for the period attributable to the shareholders of the parent company ____________ Share issue adjusted weighted average number of shares during period (excluding treasury shares)

Quarterly Figures

Cargotec		Q3/2007	Q2/2007	Q1/2007	Q4/2006	Q3/2006	Q2/2006
Orders received	MEUR	1,028	949	915	716	603	786
Order book	MEUR	2,552	2,244	1,811	1,621	1,594	1,544
Sales	MEUR	713	743	694	697	625	661
Operating profi t	MEUR	52.5	46.2	57.9	57.7	52.1*	61.0
Operating profi t	%	7.4	6.2	8.3	8.3	8.3*	9.2
Basic earnings/share	EUR	0.55	0.55	0.62	0.61	0.60*	0.64
Hiab		Q3/2007	Q2/2007	Q1/2007	Q4/2006	Q3/2006	Q2/2006
Orders received	MEUR	223	244	264	241	207	232
Order book	MEUR	255	238	237	215	215	216
Sales	MEUR	202	245	240	239	208	237
Operating profi t	MEUR	13.7	16.6	24.3	22.7	17.4	23.4
Operating profi t	%	6.8	6.8	10.1	9.5	8.4	9.9
Kalmar		Q3/2007	Q2/2007	Q1/2007	Q4/2006	Q3/2006	Q2/2006
Orders received	MEUR	324	367	393	327	258	346
Order book	MEUR	684	693	651	593	581	615
Sales	MEUR	326	330	324	321	290	309
Operating profi t	MEUR	27.8	24.0	26.8	28.2	27.5	31.0
Operating profi t	%	8.5	7.3	8.3	8.8	9.5	10.0
MacGREGOR		Q3/2007	Q2/2007	Q1/2007	Q4/2006	Q3/2006	Q2/2006
Orders received	MEUR	483	338	259	149	139	208
Order book	MEUR	1,614	1,314	923	813	798	713
Sales	MEUR	187	169	131	138	127	116
Operating profi t	MEUR	15.0	11.4	10.6	9.7	9.9	10.2
Operating profi t	%	8.0	6.7	8.1	7.0	7.8	8.8

* Excluding gain on the sale of property