KCI KONECRANES 1-9/2004: SUSTAINED ORDERS GROWTH
KCI KONECRANES PLC STOCK EXCHANGE RELEASE 5 November, 2004 10.00 am
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KCI KONECRANES 1-9/2004: SUSTAINED ORDERS GROWTH
Orders received for three quarters of 2004 run 13.7 % over 2003 (+17.0 % volume)
Special Cranes boasts a pipeline of large projects, not yet included in orders
received
Sales growth accelerating. Quarter sales up 7.1 %, y-t-d up 3.5 %.
Profits as reported stable. Rapidly increasing work-in-progress (+72 % since end
of 2003) contains margins improvements, supporting future profits.
Strengthening EURO has taxed EBIT approx. 5 MEUR
Order book up 19.3 % y-o-y (+22.5 % in local currencies).
First M&A step taken into larger harbour presence. The SMV Lifttrucks AB
acquisition closed on 29 Oct, 2004.
Three quarters LT M LY
MEUR 1-9/ 1-9/ Change 10/3-9/ 10/2-0 Change 1-12/03
SALES 04 03 % 04 9/03 %
Maintenance
Services 239.5 239.2 0.1 339.1 337.9 0.4 338.8
Standard Lifting
Equipment 157.8 147.9 6.7 222.2 212.2 4.7 212.3
Special Cranes 132.4 133.5 -0.9 177.5 194.8 -8.9 178.6
Internal Sales -42.1 -49.3 -14.7 -58.0 -70.2 -17.4 -65.2
Sales total 487.6 471.3 3.5 680.8 674.7 0.9 664.5
Operating income
before 16.8 17.2 -2.2 33.7 34.3 -1.7 34.1
restructuring
Restructuring costs 0.0 -7.0 -5.6 -7.0 -12.6
Operating income 16.8 10.2 65.0 28.1 27.3 2.9 21.5
Financial income
and expenses -1.6 -1.8 -2.4 -2.0 -2.6
Income before taxes
and extraordinary
items 15.3 8.4 81.2 25.7 25.2 1.8 18.9
Extraordinary items 0.0 -8.2 0.1 -8.2 -8.1
Taxes -5.0 -0.1 -9.0 -5.5 -4.0
Net income 10.2 0.2 6718.0 16.8 11.5 45.6 6.7
Earnings per share
(EUR) 0.73 0.43 69.0 1.18 1.21 -2.5 0.88
ORDERS RECEIVED
Maintenance
Services 226.9 209.2 8.5 286.7 274.4 4.5 269.0
Standard Lifting
Equipment 187.7 164.3 14.2 243.7 218.4 11.6 220.3
Special Cranes 157.6 134.3 17.4 208.3 164.6 26.5 184.9
Internal Orders -47.9 -46.8 2.3 -63.4 -64.2 -1.2 -62.4
Orders Received
total 524.3 461.0 13.7 675.2 593.2 13.8 611.9
ORDER BOOK 281.5 236.0 19.3 211.2
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Comment on first 9 months result:
Orders for Maintenance Services and Standard Lifting Equipment accelerated during
Q3/2004, reaching 9-month growth of 8.5 % and 14.2 % respectively (12 % and 18 %
in local currencies). The number of large projects in the pipeline in Special
Cranes runs at record level. Certain signed deals are not yet recorded as orders
received, although there are down payments and KCI Konecranes has been publicly
named as the chosen supplier.
Temporary difficulties in parts supply and raw material availability have had
some negative impact. However, sales numbers in all Business Areas are now
increasing rapidly, best evidenced in Standard Lifting Equipment where Sales
already in Q3/04 jumped 17% over the number for Q3/03.
Comment on year end result:
Sales will grow in line with earlier statements and plans. Also the earnings
development is supported by the robust growth. Restructuring plans are proceeding
well and will be completed as previously announced by the end of 2005. Supply
bottlenecks are expected to be removed within the current year, and there will be
some capacity additions. In Shanghai, China, our factory will be extended to
double capacity, adding to Group output in the second half of 2005. Both existing
work-in-progress and order backlog support a strong fourth quarter. At year-end,
the Group is expected to post an organic growth (run rate) well in excess of ten
percent.
Acquisitions, especially the Swedish SMV that relates to modern harbour materials
handling equipment, will add to Group Sales for full fiscal 2005. Acquisitions
usually also further support penetration into the maintenance services market.
The Group's acquisition strategy will be continued.
Stig Gustavson, President and CEO:
During the third quarter the Group took an important step to increase its
presence in harbours. The acquisition of Swedish SMV Lifttrucks AB (to be renamed
SMV Konecranes) matches the Group's product strategy in a perfect manner.
We have always used technical innovation and superior product performance as our
main tools in breaking into mature markets. Good examples are our all-digital, no-
hydraulics RTG, the fast "BoxHunter" STS crane and the AGD Bulk Unloader.
SMV, first set up by a entrepreneurial team of engineers ten years ago, have made
their mark in port load handling equipment precisely in the same manner by
offering handling solutions with superior performance.
The acquisition has several other merits, too. As a young company, SMV is not
heavily involved in an integrated production structure. Instead, it works in a
modern production network, with extensive use of outsourcing, also to low-cost
suppliers when necessary. The company itself focuses on technology and design,
and, for quality assurance, on final assembly of all its machines.
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SMV also runs an extensive network of dealers and agents, strategically located
near ports all over the world. This complements KCI Konecranes' existing
distribution extremely well. KCI Konecranes has traditionally worked through its
maintenance offices for reaching customers. Now, we intend to strengthen SMV's
dealer network by offering more products from KCI Konecranes' portfolio through
this channel. Naturally, our maintenance presence will provide valuable support.
Ultimately, we want to extend our success story from the heavy manufacturing
industry to ports: To an alliance of top class equipment and efficient
maintenance. Top class equipment will help us win new maintenance customers,
running the maintenance will help us design the equipment our customers prefer to
buy.
First nine months 2004
General Overview
Group total sales during January-September totalled EUR 487.6 (471.3) million.
(Numbers in brackets are corresponding values for January-September 2003 unless
otherwise indicated.) The growth was 3.5 %. Counted at comparable currency rates
the growth was 6.1 %. There was growth in the Standard Lifting Equipment Business
Area, whereas Maintenance Services stayed at the same level as last year. Special
Cranes had slightly lower sales.
Group total orders received were EUR 524.3 (461.0) million. The growth was 13.7
%. Counted at comparable currency rates the growth in orders received during
January- September was 17.0 %. There was growth in all Business Areas.
Maintenance Services and Standard Lifting Equipment orders growth accelerated
during Q3. In Special Cranes there were few big orders during Q3 but a high
number of projects in final contractual negotiations. The order intake level
remained below last years level.
The Group's total order book at the end of the period was EUR 281.5 (236.0)
million. This is up by 19.3 % year on year and by 22.5 % counted at comparable
currency rates. The order book now stands one third higher compared to the year
end level and the order book has grown in all Business Areas.
The Group's operating income was EUR 16.8 (10.2) million. The comparable number
last year included EUR 7.0 million in restructuring charges. The profitability
improved in all Business Areas in spite of a stronger euro. The stronger euro had
a negative effect (approx. 5.0 million) on year to date operating income. Group's
development activities increased and the Group's operational profitability was at
the same level as last year. The increase in development activities mainly relate
to production and sourcing activities, sales and marketing as well as M&A
spending. The costs related to these activities during January-September were EUR
2,5 million higher compared to those of the same period last year.
The Group's operating income was 3.4 (2.2) % on sales, the operating income
before goodwill amortizations (EBITA) was 3.7 (2.6) % on sales and the operating
income before depreciations and amortizations (EBITDA) 5.7 (4.7) % on sales.
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The development during Q3/2004 compared to Q3/03 was the following:
(MEUR) Q3/04 Q3/03 Change %
Orders received 171.8 162.3 +5.8
Sales 170.1 158.8 +7.1
Operating income 9.0 9.7 -7.5
Income before taxes and
extraordinary items 8.5 8.9 -5.2
Net income 5.7 0.7 +764.5
Earnings per share 0.40 0.47 -13.5
The operating Income for the Business Areas grew by EUR 0.7 million compared to
Q3/2004 last year, but the Group total operating income decreased slightly due to
an increase in development costs. Also the elimination of internal profit grew
due to the strong growth in work-in-progress.
The net of financing costs and income during January-September 2004 was EUR 1.6
(1.8) million. The decrease in financing costs is a consequence of lower interest
bearing debt in the Group.
Group income before taxes and extraordinary items was EUR 15.3 (8.4) million.
Income taxes for January-September were EUR 5.0 (0.1) million based on the
estimated 33 % effective tax rate for the whole year.
Group net income for January- September was EUR 10.2 (0.2) million and earnings
per share (EPS) 0.73 (0.43) euros.
The cash flow from operations was EUR 12.7 (-11.4) million. The cash flow per
share was 0.91 (-0.81) euros. The cash flow after net of capital expenditures and
disposals was EUR 8.2 (-25.3) million. The comparable figure last year included
an acquisition of own shares valued at 5.5 million euros. The cash flow was
supported by a higher profit and was burdened by a growth related increase in
working capital.
At the end of the period, the Group's total net interest bearing debt was EUR
50.6 (74.6) million. The net gearing was 32.8 (48.9) % and the solidity ratio was
40.7 (39.5) %.
The Group's return on total capital employed was 11.3 (6.8) % and the return on
equity 8.7 (5.0) %.
There are significant seasonal variations in Group earnings between different
quarters. Earnings are low at the beginning of the year and improve towards the
end of the year.
Review by Business Areas
Change in the reporting structure
In order to improve the accuracy and relevance of reporting, starting January
2004 the industrial crane portion of our American service operations is reported
in the business area Standard Lifting Equipment. In order to make 2004 figures
comparable with 2003 the following changes have been made to the reference
numbers for 2003: Maintenance Services orders received 2003 reduced by EUR 23.8
million, sales reduced by EUR 22.5 million and EBIT increased by
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EUR 0.4 million. Corresponding changes have been made in Standard Lifting
Equipment reference numbers.
Maintenance Services
January to September sales was EUR 239.5 (239.2) million. Counted in euros sales
was at the same level as last year, but counted at comparable currency rates
sales grew by 3.4 %. Q3/04 sales was EUR 81.7 (83.2) million. Sales grew in field
service activities, whereas sales decreased in modernisations and port services
due to timing of large projects.
The operating income in January-September was EUR 12.5 (12.3) million or 5.2
(5.1) % on sales. The profitability improved further in field service activities
mainly due to lower turnover of the contract base and due to an increase in
sales. Counted in local currency rates the field service activities grew by 5.0
%. Due to the timing of certain larger modernisation projects towards the end of
the year both sales and operating income decreased during Q3/2004 compared to
Q3/2003. This development will reverse itself when orders already on hand will be
recorded as sales.
The stronger euro had a negative translational profit impact in consolidation.
The order intake was EUR 226.9 (209.2) million, up by 8.5 % or 12.1 % at
comparable currency rates. The order intake accelerated during the third quarter
to 14 %. The orders increased both in field service and modernisation activities.
The order book grew by 22.5 % compared to the level at the end of September 2003.
The development in the contract base was also positive. The value of the contract
base grew by 6 % and the number of cranes and hoists included in the contract
base grew by 8 % compared to the end of 2003.
The growth in orders received, the level of the order book and the positive
development in the contract base support a positive profitability development in
the future.
The number of employees in the Business Area at the end of the period was 2623
(2661).
Standard Lifting Equipment
January- September sales was EUR 157.8 (147.9) million. The growth was 6.7 % and
9.8 % at comparable currency rates. The growth was strongest in the Asia-Pacific
area, Australia and Germany. There was also a positive development in North
America.
The operating income was EUR 13.4 (11.2) million or 8.5 (7.6) % on sales. The
year on year growth was 19.6 %. The profitability improvement was based on volume
growth in sales and lower costs. The efficiency improvement programs in
production and sourcing activities are running on schedule.
The stronger euro (especially versus the dollar) had a negative effect of approx.
EUR 4 million on the operating income. There were some disturbances in the
availability of some materials and components and purchase prices rose. The
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effect of higher raw material prices has been taken into account in sales
pricing. Therefore the profitability impact of higher raw material prices was
small.
The order intake was EUR 187.7 (164.3) million, up by 14.2 % or 17.9 % at
comparable currency rates. The order intake accelerated in Q3/04 and was up by 19
% from last year.
The order book now stands one third higher compared to one year ago and 80 % up
from the end of last year. Together with a high order intake this supports a
positive sales development in the future. The profitability will improve with
increasing sales and progressing structural change programs.
The number of employees at the end of the period was 1023 (984). Except for the
growth in China the employment number decreased.
Special Cranes
January-September sales was EUR 132.4 (133.5) million. The decrease in sales was
0.9 % y-o-y and the sales grew only slightly counted at comparable currency
rates.
The component and crane production volumes have increased significantly. Work-in-
progress has increased by approx. 75 % y-o-y. The rapid increase in production
volumes, the changes in production and sourcing procedures as well as the
availability of certain components has somewhat delayed the sales recognition.
Sales will increase significantly in Q4/04.
The operating income was 7.7 (7.5), up by 2.4 % y-o-y. The operating income
margin was 5.8 (5.6) %.
Cost cuts contributed positively to the profitability development and compensated
for the negative effects of the euro. The rise in certain raw material prices has
been taken into account either by fixed price supply agreements or through price
escalation clauses in sales contracts.
Orders received were 157.6 (134.3) million, up by 17.4 % or 19.3 % counted at
comparable currency rates. Geographically the growth was strongest in North
America, UK and China, but orders grew also in Scandinavia and Germany. The
growth has been especially strong in the primary metals sector. Significant
Special Crane orders have been received from steel mills.
The order book continued to grow also in the third quarter and supports an
excellent loading situation in the fourth quarter and a good start of 2005.
The efficiency programs are running according to plan and budget. The factory
expansion in Shanghai progresses and production of special crane components will
start in the second half of 2005.
Profitability is set to improve as sales increase on the basis of the large order
book and as the efficiency programs proceed.
The number of employees at the end of the period was 574 (634).
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Group costs and consolidation items
Group costs in January-September were EUR 14.7 (19.2) million, a decrease of EUR
4.5 million y-o-y. These costs last year included a EUR 7 million restructuring
charge. Development costs increased by EUR 2.5 million y-o-y and the personnel
number increased with 12 persons. In addition to R&D spending there are many
ongoing development projects relating to production, sourcing, sales and
marketing.
M&A spending also increased compared to the same period last year.
Group consolidation items were EUR 2.1 (1.6) million. The increase is due to an
increase in elimination of internal profits. This relates mainly to the increase
in work-in-progress in the Group.
Sales by market
Sales by different market developed as follows:
1-9/04 1-9/03 Change % Change % at
comparable
currency rates
Europe 235.4 245.1 -4.0 -4.1
Americas 149.2 162.9 -8.4 -1.4
Asia-Pacific 103.0 63.4 +62.5 +63.9
TOTAL 487.6 471.3 +3.5 +6.1
Currency rates
The average consolidation rates in some important currencies developed as
follows:
Sept. 2004 Sept. 2003 Change %
USD 1.2256 1.11233 -9.24
CAD 1.6278 1.5883 -2.43
GBP 0.67302 0.6904 +2.58
CNY 10.227 9.2626 -9.43
SGD 2.0855 1.9447 -6.75
SEK 9.1625 9.1691 +0.07
NOK 8.4281 7.9333 -5.87
AUD 1.6829 1.7644 +4.84
Important Events
The Board of Directors of KCI Konecranes Plc appointed Mr. Pekka Lundmark, 40,
M.Sc. (Eng), to the position of Group Executive Vice President, as of August 10,
2004. The Board further declared its intention to appoint Mr. Lundmark to the
position of Group President and CEO, becoming the successor of Mr. Stig Gustavson
in due time. According to Mr. Gustavson's contract, he may retire at the age of
60, which he will reach in June, 2005. Mr. Lundmark has previously held the
position of President and CEO of Hackman Oyj Abp as well as various executive
positions at Nokia.
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On 8 September 2004 KCI Konecranes Plc agreed to acquire all the shares of SMV
Lifttrucks AB (SMV) based in Markaryd, Sweden. The acquisition closed on October
29, 2004 and the total consideration for the shares of SMV Lifttrucks is approx.
EUR 25 million. Additionally, KCI Konecranes assumed SMV's net debt, approx. EUR
8 million. SMV's net sales for 2004 are expected to close at a significantly
higher level compared to last year's level of approx. EUR 40 million. The
acquisition is expected to add approx. 5 cents to KCI Konecranes' earnings per
share (EPS) in 2005. SMV Lifttrucks will be consolidated into the KCI Konecranes
Group's figures as of 29 October 2004.
Important orders
Here are some examples on orders received during July-September 2004. The list
illustrates our reach, both in terms of customer base and geographical coverage.
Baoding Transformer ordered two power station cranes to their facility in
Qinghuangdao City, China.
PSA Peugeot France ordered two process cranes for their automotive stamping plant
in Mulhouse, France.
General Motors USA ordered three process cranes for their automotive stamping
plants in Flint, Michigan and Indianapolis, Indiana, USA.
Bluescope Steel Suzhou, part of BHP Group, ordered five process cranes and
several industrial CXT cranes for their steel mill in Suzhou, China.
Bowling Green Metalforming ordered several steel mill cranes to be used for die
handling and coil handling plus additional CXT Industrial cranes for maintenance
purposes for their new automotive stamping plant in Kentucky, USA.
SMI Steel South Carolina placed an order for a 180-ton Hot Metal Ladle Crane for
new melt shop expansion in Cayce, SC, USA. This crane will be similar to the 230-
ton ladle crane recently purchased from KCI for their steel mill in Sequin,
Texas, USA.
Imatra Steel ordered a new 110-ton Charging Crane for their steel mill in Imatra,
Finland.
Ilsenburger Grobblech, part of Salzgitter AG, ordered two Magnet cranes for their
steel mill in Ilsenburg, Germany.
Brambles Ltd ordered a new scrap handling crane and the modernisation of three
scrap handling cranes for their scrap processing facility in Port Talbot, South
Wales, U.K.
Thyssen Krupp Umformtechnik ordered three process cranes and one Industrial CXT
crane for their plant in Bielefeld, Germany
Société des ciments de ZAHANA ordered two process cranes for their cement works
in Algeria.
Lurgi Lentjes ordered four refuse handling cranes for SLECO's waste-to-energy
plant in Beveren, Belgium.
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KCI Konecranes received an order for a total of seven shipyard cranes including a
700-ton Gantry crane and four EOT (Electric Overhead Travelling) cranes of 100-
and 50-ton lifting capacities. The customer has asked not to be identified by
name.
APM Terminals ordered four RTG Cranes for their terminal in Elizabeth, New
Jersey, USA.
Maritima Valenciana ordered three eight-wheeler RTGs for their terminal in
Valencia, Spain.
The Port of Koper ordered a new Ship-to-Shore (STS) container crane for the Luka
Koper Container Terminal in Slovenia.
Share price performance and trading volume
During January-September 2004 KCI Konecranes' share price increased by 13.41 %
and closed at EUR 31.30. The highest share price during the period was EUR 33.16
and the lowest EUR 27.20. During the same period the HEX All-Share Index
decreased by 4.13 %, the HEX Portfolio Index increased by 5.41 % and the HEX
Metal & Engineering Index increased by 17.48 %.
Total market capitalisation at the end of September was EUR 448 million (incl.
own shares held by the company), the 35th highest market value of companies
listed on Helsinki Exchanges.
The trading volume totalled 9,993,210 shares of KCI Konecranes, which represents
71.15 % of the outstanding shares (excl. own shares held by the company). In
monetary terms trading was EUR 296 million, which was the 26th largest trading of
companies listed on Helsinki Exchanges.
The non-Finland-based shareholding at the end of September was 50.04 %.
After a transfer of 53,450 of the company's own shares as partial consideration
in the acquisition of SMV Lifttrucks on 29 October 2004, KCI Konecranes Plc now
holds 210,650 of the company's own shares with a nominal value of 421,300 euros,
which is 1.47 % of the total amount of 14,308,630 shares and votes.
OP Bank Group Central Co-operative (Business ID 0242522-1) notified on October
15, 2004 that the aggregate holding by its subsidiaries and entities over which
OP Bank Group Central Co-operative exercises dominant influence amounted to 5,07
% of the shares and voting rights of KCI Konecranes Plc.
Franklin Resources Inc. (trade reg. 13-2670991) notified on August 19, 2004 that
it controlled the voting rights pertaining to 14.17 % of the shares of KCI
Konecranes Plc, through mutual funds of Franklin Resources (3.33 %) and
affiliated investment advisers (10.84 %).
Hyvinkää, November 5, 2004
The Board of Directors
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Formal statement
Certain statements in this report are forward looking and are based on
management's expectation at the time they are made. Therefore they involve risks
and uncertainties and are subject to change due to changes in general economic or
industry conditions.
Statement of Income (MEUR)
1-9/2004 1-9/2003 1-12/2003
Sales 487.6 471.3 664.5
Share of result of participating
interest undertakings -0.4 -0.2 -0.3
Depreciation -10.8 -12.0 -16.5
Other operating expenses -459.6 -448.9 (1 -626.3
Operating income 16.8 10.2 21.5
Interests, net -2.0 -2.3 -3.1
Other financial income and expenses 0.5 0.5 0.5
Extraordinary items 0.0 -8.2 -8.1
Income before taxes 15.3 0.2 10.7
Taxes -5.0 (2 -0.1 (2 -4.0
Net Income for the period 10.2 0.2 6.7
Profit /share (EUR) 0.73 0.43 0.88
Consolidated Balance Sheet (MEUR)
9/2004 9/2003 12/2003
Fixed Assets 91.7 101.0 98.0
Inventories 101.6 89.0 72.4
Receivables and other current
assets 211.2 208.8 218.6
Cash in hand and at banks 21.3 14.9 13.2
Total assets 425.8 413.7 402.2
Equity 159.7 159.1 163.4
Minority Interest 0.1 0.1 0.1
Provisions 18.6 17.2 20.3
Long-term debt 31.9 33.1 32.5
Current liabilities 215.6 204.3 185.9
Total shareholders' equity and
liabilities 425.8 413.7 402.2
Gearing 32.8% 48.9% 27.8%
Solidity 40.7% 39.5% 42.6%
Return on capital employed (3 LTM 04 LTM 03
11.3% 13.0% 6.8% 10.8%
12.8%
Equity/share (EUR) 10.98 10.94 11.24
1) Includes 7.0 MEUR restructuring charges
2) According to estimated tax rate
3) Calculated on annual basis
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Net Interest bearing liabilities (MEUR)
9/2004 9/2003 12/2003
Long- and short-term
interest-bearing liabilities -71.9 -90.2 -57.1
Cash and cash equivalents and
other interest bearing assets 21.3 15.6 13.3
Total -50.6 -74.6 -43.8
Consolidated cash flow (MEUR)
1-9/2004 1-9/2003 1-12/2003
Operating income 16.8 10.2 21.5
Depreciation 10.8 12.0 16.5
Financing income and expenses -1.6 -1.9 2.6
Taxes -4.8 -1.7 -8.6
Other adjustments 0.1 0.3 0.7
Change in working capital -8.6 -30.3 -8.4
Cash flow from operations 12.7 -11.4 24.2
Net Investments -4.5 -13.9 -17.3
Cash flow before financing 8.2 -25.3 6.9
Change in debt, increase (+),
decrease (-) 13.8 38.8 5.5
Dividend paid -14.0 -13.3 -13.3
Correction items (1 0.2 -0.5 -1.1
Net financing 8.1 -0.3 -2.0
Cash and bank deposit at
beginning of period 13.2 15.2 15.2
Cash and bank deposit at end
of period 21.3 14.9 13.2
Change of Cash 8.1 -0.3 -2.0
1) Translation difference in cash in hand and banks
Contingent Liabilities and Pledged Assets (MEUR)
9/2004 9/2003 12/2003
Mortgages and pledged assets
For own debts 5.9 5.9 5.9
For commercial guarantees 0.4 0.6 0.8
Own commercial guarantees 107.3 149.8 159.5
Guarantees
For associated company's debt 0.8 0.8 0.8
For others 0.1 0.1 0.1
Leasing liabilities 18.1 16.9 18.3
Other liabilities 0.9 0.9 1.3
Total 133.4 174.9 186.7
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Notional Amounts of Derivative Financial Instruments (MEUR)
9/2004 9/2003 12/2003
Foreign exchange
forward contracts 556.0 523.7 441.7
Interest rate swap 25.0 25.0 25.0
Currency options 0.0 156.6 0.0
Total 581.0 705.3 466.7
Derivatives are used for currency and interest rate hedging only. The notional
amounts do not represent amounts exchanged by the parties and are thus not a
measure of the exposure. A clear majority of the transactions relate to closed
positions, and these contracts set off each other. The hedged order book and
equity represent approximately one half of the total notional amounts.
Investments
1-9/2004 1-9/2003 1-12/2003
Total (excl.acquisitions
of subsidiaries) (MEUR) 7.6 9.1 12.4
DEVELOPMENT BY BUSINESS AND MARKET AREA
Sales by Business Area (MEUR)
1-9/2004 1-9/2003 LTM * LTM 1-12/2003
Year ago
Maintenance Services 239.5 239.2 339.1 337.9 338.8
Standard Lifting
Equipment 157.8 147.9 222.2 212.2 212.3
Special Cranes 132.4 133.5 177.5 194.8 178.6
./. Internal -42.1 -49.3 -58.0 -70.2 -65.2
Total 487.6 471.3 680.8 674.7 664.5
Operating Income by Business Area (MEUR)
1-9/2004 1-9/2003 1-12/2003 LTM* LTM
Year
ago
MEUR % MEUR % MEUR % MEUR MEUR
Maintenance
Services 12.5 5.2 12.3 5.1 22.4 6.6 22.6 21.4
Standard Lifting
Equipment 13.4 8.5 11.2 7.6 17.6 8.3 19.8 17.1
Special Cranes 7.7 5.8 7.5 5.6 13.1 7.3 13.3 15.4
Group costs -14.7 -19.2(2 -29.5 -25.0 -25.5
Consolidation
items -2.1 -1.6 -2.0 -2.6 -1.0
Total 16.8 3.4 10.2 2.2 21.5 3.2 28.1 27.3
1) LTM = last 12 months (full year 2003 ./. nine months 2003 + nine months 2004)
2) Includes 7.0 MEUR restructuring charges
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Personnel by Business Area (at the End of the Period)
9/2004 9/2003 12/2003
Maintenance Services 2,623 2,661 2,622
Standard Lifting Equipment 1,023 984 1,000
Special Cranes 574 634 614
Group staff 125 113 114
Total 4,345 4,392 4,350
Average number of personnel
during period 4,334 4,441 4,423
Order Intake by Business Area (Excl. Service Contract Base)(MEUR)
1-9/ 1-9/ LTM* LTM 1-12/
2004 2003 Year ago 2003
Maintenance Services 226.9 209.2 286.7 274.4 269.0
Standard Lifting Equipment 187.7 164.3 243.7 218.4 220.3
Special Cranes 157.6 134.3 208.3 164.6 184.9
./. Internal -47.9 -46.8 -63.4 -64.2 -62.4
Total 524.3 461.0 675.2 593.2 611.9
Order Book (Excl. Service Contract Base)
9/2004 9/2003 12/2003
Total (MEUR) 281.5 236.0 211.2
Sales by Market (MEUR)
1-9/ 1-9/ LTM* LTM 1-12/
2004 2003 Year ago 2003
Nordic and Eastern
Europe 76.9 117.4 124.6 170.2 165.1
EU (excl. Nordic) 158.5 127.7 209.4 189.6 178.6
Americas 149.2 162.9 207.5 227.0 221.3
Asia-Pacific 103.0 63.4 139.3 88.0 99.6
Total 487.6 471.3 680.8 674.8 664.5
* LTM = last 12 months (full year 2003 ./. nine months 2003 + nine months 2004)
Analyst and press briefing
An analyst briefing will be arranged today at 12.00 noon in Helsinki, Finland
(address: Helsinki World Trade Center, Marski Hall, Aleksanterinkatu 17).
Teleconference
An international teleconference will be arranged today on 5 November, 2004 at
4.00 p.m. Finnish time (2.00 p.m. London time). The dial-in number is +44-(0) 20
7162 0189. Please call in at 3.50 p.m. The graphics of the presentation are
attached to the report on the Internet. A replay of the teleconference will be
available for the next 48 hours at +44-(0) 20 8288 4459, code 713782.
14 (14)
Internet
This report is also available on the Internet at www.kcigroup.com. An audio
recording of Mr Gustavson's presentation at the teleconference will be available
on the Internet later on 5 November.
Next report
KCI Konecranes will release its Financial Calendar for 2005 during week 46, 2004.
Graphics
A graphical presentation of this report is available on the Internet at
www.kcigroup.com.
KCI KONECRANES PLC
Franciska Janzon
IR Manager
FURTHER INFORMATION
Mr Stig Gustavson, President & CEO, tel. +358-20 427 2000
Mr Pekka Lundmark, Group Executive Vice President, tel. +358-20 427 2005
Mr Teuvo Rintamäki, Chief Financial Officer, tel. +358-20 427 2040
Ms Franciska Janzon, IR Manager, tel. +358-20 427 2043
DISTRIBUTION
Helsinki Stock Exchange
Media
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[pic]
KCI KONECRANES PLC
