KCI KONECRANES GROUP Q4/2003 Financial R
KCI KONECRANES PLC STOCK EXCHANGE RELEASE 1 (28)
11 February, 2004 10.00 a.m.
KCI KONECRANES GROUP
Q4/2003 Financial Results, Full Year 2003 Financial Results
GOOD FOURTH QUARTER
Fourth Quarter Results:
Income after financing items EUR 10.4 million
Operational EBIT EUR 16.9 million, margin at 8.7 % close to historical
top
Orders up 14.1 % y-o-y
Cash Flow per share EUR 2.54 up 44.3 % y-o-y
Million EUR 10-12/03 % 10-12/02 % Change%
SALES
Maintenance Services 106.9 104.7 2.2
Standard Lifting
Equipment 57.1 58.5 -2.4
Special Cranes 45.1 61.2 -26.2
Internal Sales -15.9 -20.9 -23.7
Sales total 193.2 100 203.5 100 -5.0
Operational EBITA 18.0 9.3 17.8 8.7 1.1
Operational EBIT 16.9 8.7 17.1 8.4 -1.2
Restructuring costs -5.6 -
Operating income 11.3 5.8 17.1 8.4 -34.1
Financial income and
expenses -0.8 -0.3
Income after financing
items 10.4 5.4 16.8 8.3 -38.0
Extraordinary items 0.1 0.0
Net income 6.5 3.4 11.4 5.6 -42.5
Earnings per share (EUR) 0.46 0.78 -41.0
Cash flow per share (EUR)
2.54 1.76 44.3
ORDERS RECEIVED
Maintenance Services 66.0 70.2 -5.9
Standard Lifting
Equipment 49.8 49.2 1.2
Special Cranes 50.6 30.3 66.9
Internal Orders -15.6 -17.4 -10.7
Orders received total 150.9 132.2 14.1
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FULL YEAR 2003: ORDERS STARTED TO GROW
Full Year 2003 Results:
New orders increase +2.2 % (+8.7 % in real terms)
H2/2003 orders 15.3 % over H2/2002 orders.
Sales approx. intact 6.9 % (- 1.6 % in real terms)
Operational EBIT margin well defended: 5.1% (2002: 5.3 %)
New Group structure to yield EUR 15-20 million/y, costs EUR 12.6
million booked in 2003
EUR/USD rate: identified as risk
Boards dividend proposal: EUR 1.00/share
Million EUR 1-12/03 % 1-12/02 % Change Change %
SALES % comparable
currencies
Maintenance
Services 361.3 372.4 -3.0 5.0
Standard Lifting
Equipment 189.8 204.5 -7.2 -3.3
Special Cranes 178.6 209.2 -14.6 -12.1
Internal Sales -65.2 -72.5 -10.0 -4.3
Sales total 664.5 100 713.6 100 -6.9 -1.6
Operational EBITA 37.4 5.6 40.9 5.7 -8.6
Operational EBIT 34.1 5.1 37.6 5.3 -9.3
Restructuring costs -12.6 -
Operating income 21.5 3.2 37.6 5.3 -42.9
Financial income and
expenses -2.6 -1.1
Income after
financing items 18.9 2.8 36.5 5.1 -48.3
Extraordinary items -8.1 -
Net income 6.7 1.0 24.6 3.5 -72.9
Earnings per share
(EUR) 0.88 1.69 -47.7
Cash flow per share
(EUR) 1.72 4.54 -62.1
Dividend per share
(EUR) 1.00(1 0.95 5.3
ORDERS RECEIVED
Maintenance
Services 292.8 310.2 -5.6 2.5
Standard Lifting
Equipment 196.5 203.2 -3.3 1.1
Special Cranes 184.9 154.9 19.4 24.7
Internal Orders -62.4 -69.4 -10.1 -4.8
Orders received
total 611.9 598.9 2.2 8.7
Order book at end of
period 211.2 206.0 2.5 7.0
1) Boards proposal
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Comment on 2003:
Markets in the western world continued to be stagnant or in decline
for the third year in a row. The US market now shows signs of return
to growth. Asia-Pacific markets (especially China) show strong growth.
The results of Group internal actions became visible towards end of
the year: New orders increased, profitability started to rise.
Business Areas performance improved throughout the year. Maintenance:
Very good inflow of new contracts. But: high cancellation rate of old
contracts. Churn burdens income, but margins improved to good in Q4.
Standard Lifting Equipment: Good development with new product line,
good development in China, but: price pressures remain. Special
Cranes: Market starts to come back, but development still uneven.
Future prospects:
The Group sees no sign of major change in markets: Europe low, America
slowly increasing, Asia-Pacific good growth. Internal efficiency
programs and Asian growth will create sales growth and improved
profits. The euro/USD rate identified as risk.
Stig Gustavson, President and CEO
A year of renewal
The year 2003 the tenth year in KCI Konecranes modern history was
a year of great turbulence and change. The beginning of the year,
under the plight of the SARS epidemic and the threat of war in Iraq,
meant an almost total standstill on all our markets. As the year went
by, we managed to find increasing amounts of business and in the
second half of the year operations were in high gear again.
In total KCI Konecranes performance was fair. The total sales amount
did not change from the previous year figure (nominal minus 6.9 %,
disregarding currency changes minus 1.6 %). Total orders show an
increase of 2.2 %, which translates to an increase of 8.7 % in volume.
Also our profitability was almost intact: The operational EBIT margin
was 5.1 %, against 5.3 % one year earlier.
Underneath this stable-looking surface we saw substantial changes. The
changes related to the markets, with deep changes in the international
demand structure, changes related to our competitors, and, also,
dramatic changes in exchange rates.
To combat all this change, the Group has chosen not only to react on
change, but to actively avail ourselves of the opportunities, that are
an automatic consequence of change.
We have embarked on an extensive program of cleaning out old structure
and ways of operation. We are growing closer to our markets and our
customers. And we work hard to increase our own flexibility, our own
capacity to act and react in a fast changing world.
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Our strong and unimpaired balance sheet provides us with the freedom
of choice on timing and nature of measures.
During the year, we finally cleared out the remnants of the ill-fated
Baan-project. Baans ownership changed, and with the new owners we
quickly settled all outstanding disputes.
Having spent the last five years investing heavily into R&D the
Group has a totally modern product range we now focused on our
production structure. We adopted a new approach the core of which is a
global supply network replacing owned production sites. Step by step
we will reduce our dependence of parts manufactured in our own plants.
Instead, we focus on an efficient global procurement structure, with
the capability of swift reactions to changes in demand. Also, our
exposure to exchange rate fluctuations is reduced further.
The new strategy will result in the reconsideration of certain
operations in Finland, France and Germany, with a corresponding risk
for redundancies. To some extend this has already materialised. In
all, some 400 jobs may be at risk. We do not take these measures
lightly, but we see few alternatives other than dismantling capacity.
We work in close co-operation with our personnel and their
organisations, seeking to minimise the effects on the personal lives
of those that may loose their jobs.
We have included a charge of EUR 12.6 million against the profits of
2003, to cover the costs for restructuring. The new structure is
expected to produce costs savings in the amount of EUR 18 million p.a.
in two years when fully implemented.
Our markets continued on a low level for the third year in a row. The
exception is China, and now also other Asia-Pacific countries. Our
entry into the Chinese market, with our own manufacturing, with an
extensive dealer/crane builder network and with a local parts
procurement activity feeding into our global procurement network, has
proven very successful and well-timed. During 2003, our Asia-Pacific
region posted phenomenal growth. In Standard Lifting Equipment, Asia-
Pacific passed Americas as the second biggest region. Region Europe
still holds the number one position. America as a whole returned to
growth with sales up 5.1 % in real terms (neg. 8.7 % including the US-
dollar decline).
After over ten years of virtual standstill, the Japanese market, on of
the biggest markets in the world for lifting gear, now show signs of
growth. Our entry into that market last year is now starting to pay
dividends.
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Our biggest Business Area, Maintenance Services, again demonstrated
its fundamental strength. With western (Europe and North America)
manufacturing utilisation rates on a historically very low level, the
demand for maintenance was affected. Plant closures and production
consolidations always mean lost maintenance agreements. However,
embedded growth drivers in this industry are strong enough to yield a
net growth also in this environment. The value of cancelled contracts
rocketed to 16 %, but the value of new contracts climbed 21 %, leaving
a net value growth of 5 %. Naturally, the heavy churn took its toll on
profitability, but only to a limited amount. During Q4, the margins
were restored.
In acquisitions, traditionally a good contributor to growth, we took a
more cautious approach. Potential targets often do not look too
attractive in these market conditions. The risk for unwise
acquisitions has grown. However, our basic strategy of availing
ourselves of every opportunity for extending our market coverage
through acquisitions is still valid.
The Group goes into 2004 from a strong starting point. Our structure
is lighter, we have cut a lot of old garbage, our product lines are
modern and effective and new orders and order backlog increase. Our
net debt is low. We are looking forward with confidence for a year of
profitable growth.
Hyvinkää, 11 February, 2004
Stig Gustavson
Business development
During 2003 the Group reversed the general trend of decreasing orders
and order backlog, which had prevailed for two years. Orders received
grew by 2.2 % or 8.7 % counted at comparable currency rates and the
total order backlog grew by 2.5 % or 7.0 % at comparable currency
rates. During the second half of 2003 the order intake totalled EUR
313.2 million, up by 15.3 % from the order intake in H2/2002. This
positive development is largely attributable to the strength of the
Asian market and to the Groups internal endeavours. In America and in
Europe industrial capacity utilisation rates remained low and the
investment climate poor among many customer industry sectors.
Group net sales declined to EUR 664.5 (2002: 713.6) million in 2003
(Numbers in brackets are the corresponding values for the previous
year unless otherwise indicated). The operating income was EUR 21.5
(37.6) million or 3.2 % (5.3%) on sales. The Group reserved EUR 12.6
million for various measures to restructure its operations. Excluding
this one-off charge, which can be seen as a forward-looking
investment, the Groups operating income was EUR 34.0 million or 5.1 %
on sales. The profitability was largely well defended in spite of
decreasing sales.
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Sales
Group net sales was EUR 664.5 (713.6) million, which is EUR 49.1
million or 6.9 % lower compared to 2002. The decrease in sales was
mainly caused by the strengthened value of the euro. When counted at
comparable currency rates, which better measures the development of
volume, sales decreased only by 1.6 %. In terms of volume, sales grew
in Maintenance Services by 5.0 %, while Standard Lifting Equipment
contracted by 3.3 % and Special Cranes by 12.1 %.
Geographically Asia-Pacific continued its strong growth with a sales
volume growth of 44.9 %. The Americas returned back to growth with a
sales volume growth of 5.1 %, but Europe declined clearly with a
decrease of 13.3 % in sales volume.
Profitability
The Groups operating income was EUR 21.5 (37.6) million, which is EUR
16.1 million or 42.8 % less than in 2002. The margin was 3.2 (5.3) %.
The operating income was burdened by EUR 12.6 million in costs for
rationalisation and restructuring of Group operations, out of which
EUR 10.9 million was recorded as provision to cover future costs.
These costs, which mostly relate to the Groups operations in new
equipment, are one-off costs by their nature and can be seen as an
investment for the future. Excluding these costs the operational EBIT
was EUR 34.0 million and 5.1(5.3) % on sales. There were no one-time
gains of any significance reported during the year.
The operating income before goodwill amortizations and excluding one-
off restructuring costs, Operational EBITA was EUR 37.4 (40.9) million
or 5.6 (5.7) % on sales. The operating income before depreciations and
amortizations and excluding one-off restructuring costs, Operational
EBITDA was EUR 50.6 (53.1) million or 7.6 (7.4) % on sales. Including
one-off restructuring costs the corresponding figures were: EBITA EUR
24.8 million and 3.7 % on sales and EBITDA EUR 38.0 million and 5.7 %
on sales. The performance by Business Areas is reported under the
Business Area review in this report.
The net of financing costs and income was EUR 2.6 million, which is
EUR 1.5 million more than in 2002. The financing net is less than 0.4
% on sales. The increase in financing costs was mainly caused by
financing needs for an increase of working capital, prompted by a
return to growth.
The Groups income after financing items was EUR 18.6 (36.5) million.
The settlement costs of EUR 8.1 million relating to the disputed
Omnimanö ERP-project were reported as extraordinary expenses. The
Groups income taxes were EUR 4.0 million, down by EUR 7.8 million
compared to income taxes in 2002. The effective tax rate for the year
was 37.6 (32.5) %. The tax rate in 2003 was influenced among other
things by the tax treatment of certain restructuring costs. This level
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of income taxes is not typical. The income tax is likely to increase
in absolute terms, but to decrease as a percentage on profit before
taxes.
Group Net Income was EUR 6.7 (24.6) million or 1.0 (3.5) % on sales
and earnings per share, EPS was EUR 0.88 (1.69). Including the
extraordinary expense the EPS was EUR 0.47.
The Groups return on capital employed was 10.8 (17.8) % and the
return on equity 7.5 (14.2) %. The decrease in return rates compared
to the year 2002 was mainly caused by one-off restructuring costs,
which burdened the result in 2003. The efficiency of capital usage ie.
the capital turnover rate stayed at the level of the previous year.
The Groups quarterly profit accumulation has never been uniform
between different quarters. It has been slow in the beginning of the
year and then accelerating towards the end of the year (öseasonalityö
in the earnings pattern). The Group reserved an additional EUR 5.6
million for restructuring costs against operating income during the
fourth quarter. Even including this one-off charge the fourth quarter
operating income was the highest in 2003 and excluding the charge
Q4/2003 operating profit was EUR 16.8 (17.1) million or 8.7 (8.4) % on
sales.
Cash flow and balance sheet
The cash flow from operations was EUR 24.2 million in 2003 compared to
the all time high of EUR 66.3 million in 2002. The cash flow was
negatively affected by lower profit generation and a slight increase
in working capital. The change in working capital relates to changes
in the product mix and operational activity level, which shifted from
a declining mode into a growth mode during the year. The cash flow
from operations per share was EUR 1.72 (4.54). The cash generation was
strong during the last quarter of 2003. The cash flow from operations
was EUR 35.6 (25.7) million in Q4/2003.
In total EUR 11.8 (21.1) million cash was used to cover capital
expenditures including acquired operations, EUR 5.48 (9.9) million was
used to repurchase the companys own shares and EUR 13.3 (13.2)
million was used to pay dividends.
The Groups net interest bearing borrowings were EUR 43.8 (33.0)
million at the yearend 2003 and the gearing was 27.8 (19.1) %. The
Groups solidity ratio was 42.6 (45.5) % and the current ratio 1.49
(1.60).
The Groups EUR 100 million committed back-up financing facility was
totally unused at the yearend 2003.
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Order intake and order backlog
Group order intake (excluding the value of the maintenance service
contract base and renewed contracts) was EUR 611.9 million. The orders
received increased from 2002 by EUR 13.0 million or 2.2 %, at
comparable currency rates the increase was 8.7 %.
The strongest order development took place in Special Cranes. With a
total order intake of EUR 184.9 (154.9) million this Business Area
posted a growth by 19.4 % or 24.7 % counted at comparable currency
rates.
The order intake in Standard Lifting Equipment decreased by 3.3 % to
EUR 196.5 (203.2) million in 2003. Counted in units or using constant
currency rates there was a small increase in volume.
In Maintenance Services the order intake decreased by 5.6 % to EUR
292.8 (310.2) million. However, Maintenance Services volume counting
at comparable currency rates grew by 2.5 %. KCI Koneports services,
large upgrade and modernisation orders posted a strong volume growth
at over 20 %, while the development of field services and other basic
maintenance was steady. This was largely caused by higher than usual
turnover in the customer base. Many customer industries suffered from
a low capacity utilisation resulting in partial or total plant
closures. Also their search of improved cost competitiveness made many
customers relocate their production or their supply network. However,
a strong development in new contracts compensated for the lost
contracts, and there was a net growth. The net growth in terms of
number of cranes included in the contract base was 0.7 %. It grew to
209,769 (208,270) units at the end of 2003. The net growth in terms of
total contract base value grew by 5 % counted in local currencies. The
mix of cranes in the contract base changed somewhat. In general the
size of cranes increased and became more demanding which boosted the
average contract value per crane by 4.4 %.
Geographically the fastest growth in total orders took place in Asia
and especially in China where orders received almost doubled from the
previous year. North American orders also grew somewhat when counted
for in dollars. Also the Groups German operations turned into a
moderate growth in orders, but the overall order activity in Europe
contracted and total orders received decreased. Group orders during
the second half of the year 2003 were EUR 313.2 million, up by 15.3 %
from the level of H2/2002.
At yearend 2003, the total value of the order backlog stood at EUR
211.2 (206.0) million. The growth was 2.5 % or 7.0 % counted at
comparable currency rates. The majority of the order backlog value
consists of Special Cranes orders, securing a good general operational
level for 6-8 months ahead. However, the loading situation is not even
between different Special Crane operative units and several actions to
improve the situation have been implemented. The order backlog in
Standard Lifting Equipment grew with approx. one fifth from the low
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level at the end of 2002. In Maintenance Services the order backlog
relates mainly to larger repair, upgrade or modernisation orders
whilst the majority of the business consists of maintenance agreement
based work and services or other fast throughput orders. Therefore the
value of the order backlog is not as good an indicator of future
activity levels in Maintenance Services as it is in the other Business
Areas. However, the volume of service orders on hand at the yearend
2003 stayed at the level of yearend 2002.
Currencies
The stronger euro especially against the US-dollar had a certain
effect on the development of the Groups orders received and sales
(translational effect). Counted at unchanged currency rates orders
received grew by 8.7 % and sales declined by 1.6 %. The corresponding
reported figures were a growth in orders of 2.2 % and a decline in
sales of 6.9 %. Accordingly, currency exchange rate changes had an
impact on Groups financial performance figures, but it had little
effect on the consolidated operating income and net income.
The average consolidation rates of some important currencies developed
as follows (currency/euro):
December December Change %
2003 2002
USD 1.13154 0.94573 -16.4
CAD 1.5822 1.4842 -6.2
GBP 0.6922 0.62887 -9.1
SEK 9.1271 9.1607 0.4
NOK 8.0059 7.5082 -6.2
SGD 1.9712 1.6915 -14.2
AUD 1.7385 1.7378 0.0
CNY* 9.4309 7.8775 -16.5
* Chinese Yuan (Renminbi)
The Group continued its currency risk management policy of hedging all
non-euro transactions. Hedging was mainly done through forward
exchange transactions. Currency risks are hedged one year ahead as an
average. Applying this policy does not make the Group immune against
the currency exchange rate changes, but it minimises risks relating to
sales margins in the order book and allows time to take necessary
actions in case of larger and relatively permanent currency value
changes.
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Capital expenditure
The Groups capital expenditure to tangible assets excl. fixed assets
and goodwill of acquired operations was EUR 8.6 (12.9) million. These
capital expenditures consist mainly of the replacement of machines,
equipment and information technology. Capital expenditure to
intangible assets (excl. acquired operations) and shares in joint
venture companies or minority holdings amounted to EUR 3.7 (1.0)
million.
In total the capital expenditure amounted to EUR 12.4 (13.9) million,
which is a little short of corresponding depreciations.
Research and Development
The direct R&D costs were EUR 7.9 (8.2) million or 2.1 (2.0) % of new
equipment Business Area sales (Maintenance Services sales excluded).
The development of an entirely new wire rope hoist line was completed.
This modern and competitive hoist line has now totally replaced the
old hoist. In R&D there is a change of focus from products to
maintenance tool development.
Human Resources Development
Group total investment in personnel training and development was
approximately 8,000 training days. All development programs continued
on all levels of the organisation including technical and sales
training, middle management and expert training (KCI Academy) and top
executive development together with IMD in Lausanne, Switzerland.
Personnel
KCI Konecranes Group employed 4,350 people at the end of 2003. This is
91 persons less compared to the end of 2002. Excluding personnel
increases due to acquired operations and growing Chinese operations
there was a total reduction elsewhere by approx. 190 people.
The average number of employees during year 2003 was 4,423 (4,396)
persons.
Insurances
The Group continuously reviews its insurance policies as part of its
overall risk management. Insurances are used to provide sufficient
cover against all risks that are economically or otherwise reasonably
insurable. As insurance premium prices have risen the Group has
intensified the use of other risk management methods within its
operations without lowering the level of protection.
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Litigation
In September 2003 KCI Konecranes Plc, Konecranes Inc., Baan Company
N.V., Baan International B.V., Baan Development B.V., Baan USA Inc,
and SSA Global Technologies, Inc. reached a settlement on all disputes
relating to the terminated ERP-project (the Omnimanö project). The
settlement was full and final including withdrawals of all legal
proceedings in Sweden, in the Netherlands and in the USA. The details
of the settlement agreement are confidential, but the settlement
caused a non-recurring EUR 8.1 million loss, which was booked as an
extraordinary item. The after tax effect on net income was EUR 5.7
million. The settlement did not have any effects on the cash flow.
At yearend there were no pending legal processes or business claims
with a material effect.
Group structure
The Group made two acquisitions in the beginning the year 2003. During
the first quarter the Group acquired the assets of the company
CraneMann Inc. in Houston, USA and in the beginning of the second
quarter the service company Kubi Kran- und Bagger-Instandsetzung GmbH
(KUBIö) was acquired in Germany. With the acquisition of CraneMann
the Group strengthened its position as a crane and maintenance service
provider in the Mexican Gulf area and within the offshore industry.
KUBI strengthens the Groups presence in inland terminals and river
ports especially in Germany.
The expansion of the sales and joint venture network continued in
Asia. In China the Group completed a joint venture agreement with
Jianyin Dingli Shanghai High Tech Industrial Crane Company Ltd and
acquired 30 % of the company. The Group formed a joint venture company
with Shanghai High Tech Industrial Company, Ltd and acquired 25 % of
that company. Another Chinese joint venture company was formed
together with Guangzhou Technocranes Company Ltd giving the Group 25 %
of the company. On 6 November, 2002 the Group entered into an
agreement with Meidensha Corporation of Japan. The agreement of the
formation of this joint venture company together with Meidensha was
closed in April, 2003. KCI Konecranes now holds 49 % of the shares in
Meiden Hoist System Company Ltd with an option to increase its
shareholding to 65 % before March 2008.
The Group commenced on various actions to improve its cost
competitiveness. Among completed actions certain design and
engineering activities in Standard Lifting Equipment (KCI Hoists
Corporation) were outsourced. The engineering office of Special Cranes
company Kulicke Konecranes GmbH, was closed in Frankfurt. The
production of small travelling motors in Tammisaari, Finland was
outsourced. The building maintenance activities, which used to be part
of Groups Machine Tool Maintenance (previously known as Plant
Maintenance) operations in Finland were sold. As of January 2004, all
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Machine Tool Maintenance activities, which used to be carried out by
four separate companies, were transferred to Konecranes Nordic
Corporation. At consolidation, the total number of staff decreased.
The name of the receiving company was changed to Konecranes Service
Corporation.
After the review period the process to close the special crane
manufacturing site in France progressed. In the future, the company,
CGP Konecranes will concentrate on marketing, and sales of Special
Cranes. KCI Motors Corporation started negotiations with its personnel
concerning measures to increase the cost efficiency in motor
production. The possibility of outsourcing the entire production is
being evaluated.
Share price performance and trading volume
KCI Konecranes Plcs share price increased by 18.51 % during 2003 and
closed at EUR 27.60 (23.29). The year high was EUR 29.39 (36.83) and
the year low EUR 17.20 (19.80). During the same period the HEX All-
Share Index increased by 4.44%, the HEX Portfolio Index by 16.21% and
the HEX Metal & Engineering index by 30.67%.
The total market capitalisation was at year-end EUR 394.9 (333.2)
million including the companys own shares in the company, the 34th
largest market value of companies listed on Helsinki Exchanges.
The trading volume totalled 12,661,860 shares of KCI Konecranes Plc,
which represents 88.49% of the total amount of 14,308,630 shares
outstanding shares. In monetary terms the trading was EUR 284.8
million, which was the 25th largest trading of companies listed on
Helsinki Exchanges.
The companys own shares
At the end of December 2003 KCI Konecranes Plc held 264,100 of the
companys own shares with a total nominal value of EUR 528,200, which
is 1.85 % of the total amount of shares and votes. The shares were
bought back between February 20 and March 5, 2003 at an average price
of EUR 20.75 per share. The total purchase price was approx. EUR 5.5
million.
At the Annual General Meeting 2003 the Board was authorized to
repurchase up to a maximum of 715,431 of the companys own shares.
Including the shares, which are held by the company at the end of 2003
the authorization is still valid for an additional acquisition of
451,331 shares.
Dividend proposal
The Board of Directors proposes to the AGM that a dividend of EUR 1.00
per share will be paid for the fiscal year 2003. The dividend will be
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paid to persons shareholders, who are entered as shareholders into the
share register on the record date of March 9, 2004. Dividend payment
date is March 16, 2004.
Review by Business Area
Maintenance Services
Maintenance Services sales were EUR 361.3 million, down 3 % from EUR
372.4 million in year 2002 (counted at comparable currency rates sales
grew by 5 %). The operating income was EUR 22.0 million compared to
EUR 26.2 million in 2002. The operating income margin was 6.1 %
compared to 7.0 % in 2002.
The productivity and profitability in field operations within
Maintenance Services was negatively affected by high turnover of
maintenance contract base. Compared to yearend 2002 new contracts
received during 2003 increased the total contract base value by 21 %
(in local currencies) but reductions in terms of cancellations and
changes in the content of contracts caused a 16 % value decrease. Thus
the net increase in the value of maintenance agreement base was 5 %.
The high turnover of contract base was largely a consequence of
customers cutting or translocating their production capacity and
changing their suppliers. As a consequence we had to transfer and
reallocate our maintenance resources, which burdened our productivity.
KCI Koneports services (counting approx. 15 % of the total sales in
the business area) developed positively during the year both in terms
of sales and profitability.
The devaluation of the US-dollar and some other USD-related currencies
had a negative translational effect of approx. EUR 2 million on the
operating income.
Quarterly operating income margins improved towards the yearend. The
margins stayed below the corresponding previous year figures except
for the fourth quarter. Q4/2003 operating income on sales was 9.6 %
compared to 9.0 % in Q4/2002.
The number of employees in Maintenance Services at the yearend was
2662 compared to 2698 at the end of year 2002. Excluding personnel
increases in growing units and acquired operations there was a total
reduction of 81 in the headcount. This reduction is due to improving
efficiency in operations, as actions to enhance productivity continued
in field work and in support functions.
The total order intake in the Business Area was EUR 292.8 million,
down 5.6 % compared to EUR 310.2 million in 2002. Counted at
comparable currency rates there was an increase of 2.5 % in orders and
the value of the Maintenance contract base (in local currencies) grew
by 5 %. The number of cranes included in the contract base reached
209,769, which is 0.7 % more than at the end of year 2002. The gross
growth in number of units was 17.5 %, but contract cancellations and
14 (28)
reductions caused a 16.8 % decrease in the number of units. The
average maintenance contract value per equipment grew by 4.4 %.
Future prospects
Since mid-year 2003 the US manufacturing capacity utilization has
started to climb, together with new orders and order books. At the end
of 2003, utilization reached 74 %. It is too early to predict a
definitive improvement, but if the trend continues, the contract
turnover (churn rate) is likely to drop and growth and profitability
would increase. Already in Q4 margins returned to normal levels.
In Europe, the Maintenance growth prospects remain stable in spite of
continuing low growth in industrial activity.
So far, our maintenance presence in region Asia-Pacific has been
strongest in Australia. Slowly but surely, our Maintenance offering is
becoming a valid alternative also in the rest of Asia-Pacific, adding
to the overall growth.
KCI Koneports fast development is expected to continue.
New operational tools are expected to add to the productivity in the
business area.
The growth factors will continue to add to the business regardless of
economic climate. A reduction in the churn rate will boost both sales
growth and margins.
Standard Lifting Equipment
Standard Lifting Equipment (SLEQ) sales were EUR 189.8 million, down
by 7.2 % compared to EUR 204.5 million in 2002 (3.3 % decrease when
counted at comparable currency rates). The operating income was EUR
18.0 million, down by 7.6 % or EUR 1.5 million compared to EUR 19.5
million in 2002. Despite the decrease in sales the profitability
stayed at the same level than in the previous year. The operating
income margin was 9.5 %; same as in 2002.
The translational effect of the stronger euro had only a marginal
effect on the consolidated operating income. The negative
transactional impact on export from euro-area in other currencies was
eliminated through efficient hedging.
The decrease in operating income was mainly a consequence of lower
sales and to some extent of lower sales prices. However, the
profitability was supported by efficiency improvement actions and the
completed launch of the new wire rope hoist line.
During the last quarter in 2003 operating income was EUR 6.2 million
or 10.9 % on sales. Corresponding figures from the previous year were
EUR 5.6 million and 9.6 %.
15 (28)
The total number of employees at yearend was 960 compared to 949 at
yearend 2002. The employment number increased mainly in China and due
to new operations (total increase 56 persons), while employment
contracted elsewhere. The efforts to further enhance cost
competitiveness and operational efficiencies is continuing.
The order intake was EUR 196.5 million, down by 3.3 % (up by 1.1 %
when counted at comparable currency rates). The order book grew by
17.9 % from the low level in 2002 or 25.2 % counted at comparable
currencies.
Future prospects
We are starting 2004 with a significantly healthier order book
compared to the start of 2003. With our new product platform fully
operative and with our strides into a more cost efficient production
structure, we feel confident of being able to further strengthen the
operative margins in this business area.
We cover the market fairly well through our maintenance organisation
(the Konecranes brand) and independent distributors (other brands of
the Group). We have identified an untapped market in replacing crane
owners old hoists with high-performing own equipment.
With the American economy slowly switching into a growth mode, with
European industrial restructuring gaining momentum, and with a
continuing fast Asian growth, our outlook for 2004 remains reasonably
positive.
On the downside we naturally recognize growth signals still being
feeble. Also, the volatile currency environment of late could have
surprising ramifications on industrial activities.
Special Cranes
Special Cranes sales were EUR 178.6 million, down by 14.6 % from EUR
209.2 million in 2002. Operating income amounted to EUR 13.1 million,
down by 21.4 % from EUR 16.7 million in 2002. Counted at comparable
currency rates sales decreased 12.1 % and operating income accordingly
21.0 %. The operating income margin decreased from 8.0 % in 2002 to
7.3 % in 2003.
The decrease in operating income was caused by lower sales, but the
margin, albeit lower than in 2002, did not suffer as much as the
decline in sales would have suggested. During the last quarter of 2003
sales was EUR 45.1 million and operating income EUR 5.6 million or
12.4 % on sales. The corresponding figures in Q4/2002 were: sales EUR
61.2 million, operating income EUR 7.8 million and 12.8 % on sales.
Despite a 26 % decrease in sales the profitability remained in
practical terms the same.
16 (28)
As the year progressed the profitability improved. This improvement
reflects the efficiency enhancing actions. The results of the most
important efficiency enhancing actions are not yet fully visible in
the profit development.
Order intake was EUR 184.9 million, up by 19.4 % (24.7 % counted at
comparable currencies) from EUR 154.9 million in 2002. Orders for
harbour cranes grew strongly while orders for other type of special
cranes stayed at the same level than in 2002.
The order backlog broke the declining trend and was 2.5 % higher at
the yearend 2003 compared to yearend 2002 (5 % higher at comparable
currency rates).
The employment number declined by 10.4 % during the year. Total number
of employees was 614 compared to 685 at the yearend 2002.
Future prospects
In this environment our Group is well positioned. A thoroughly modern
product portfolio and our global unmatched maintenance presence is
increasingly appreciated among our, likewise, increasingly
international customers. Our unaffected financial strength is regarded
a key element for our clients, today hesitant to placing orders with
suppliers whose future financial performance seems unclear.
Group costs and consolidation items
The overheads, which are not charged directly to the Business Areas,
relate to Groups research and development, personnel development,
cash management and financing, legal affairs, M&A activity, sourcing
activity and management. In total these costs were EUR 29.5 million
compared to EUR 23.8 million in 2002. The one-off costs relating to
Groups capacity rationalization and efficiency improvement actions
amounted to EUR 12.6 million and were reported in Group costs (costs
already occurred in 2003 were EUR 1.7 million and cost provisions at
yearend 2003 EUR 10.9 million).
Excluding one time charges relating to efficiency improvement actions
Group costs were EUR 17.0 million, which represents a typical level of
expenses.
Group consolidation items were EUR 2.1 million compared to EUR 1.0
million in 2002. The Group consolidation items consist of the
elimination of Groups internal profit, share of associated companies
results and Group goodwill depreciation. The growth in consolidation
items was caused by the Groups internal profit elimination. Instead
of contracting like in 2002 profit recognized internally, but not yet
from the whole Groups point of view, started to grow again in 2003.
17 (28)
The final settlement on the disputes relating to the Omniman projectö
caused one-off cost of EUR 8.1 million (after taxes approx. EUR 5.7
million). Due to the extraordinary nature of this item it has not been
reported in Business Area numbers or in Group costs. Instead, it has
been reported as an Extraordinary item after Groups financing costs,
but before taxes. This way Groups operating income better reflects
profitability and its development in 2003.
Important orders
NAF Neunkirchener Maschinen & Achsenfabrik ordered 16 industrial
cranes for the modernisation of automotive factory in Neunkirchen,
Germany.
Automotive component supplier Altec Druckguss ordered several
industrial cranes for their new motor factory in Hof, Germany.
Sonora Forming Technologies, a division of Magna International,
ordered nine cranes used in die handling and maintenance, steel coil
handling, and in the quality laboratory at their Automotive Stamping
Plant in Hermosillo, Mexico.
Hyundai Motor Manufacturing Alabama, LLC ordered nine heavy-duty
stamping plant cranes including installation, start-up and operator
training for their Automotive Stamping Plant in Montgomery Alabama,
USA.
The Port of Kotka, Finland placed a repeat order for a Ship-to-Shore
(STS) container crane.
Georgia Port Authority (GPA) in Savannah, USA, has exercised its
option and ordered two Super Post Panamax Ship-to-Shore container
cranes from Konecranes VLC.
Siemens A/G, Offenbach, Germany placed an extension order for six more
cranes for the AZ Zour Power Station in Kuwait.
Alstom Power, Rugby, UK ordered the modernisation of two power station
cranes in their production facility.
SNC Lavalin ordered two power station cranes for a Hydropower project
in Castlegar, British Columbia, Canada.
Groupe Aecon, Ltd. ordered two power station cranes for a Hydropower
project in James Bay, Quebec, Canada.
CNIM (FRANCE) ordered several Waste-to-Energy cranes including two
automated winch cranes and one turbine hall crane on behalf of
Hampshire Waste, UK to be delivered to Portsmouth, UK.
18 (28)
Fortum Värme ordered two automatic Waste-to-Energy cranes to replace
old equipment at Tekniska Verken in Linköping, Sweden.
Shell UK Oil Products Ltd, ordered eight cranes for its central
engineering workshops at their Stanlow Manufacturing Complex,
Ellesmere Port in the UK.
Larsen and Toubro ordered a Single Leg Portal Gantry Coker Crane for
Indian Oil Company Limited, Panipat Refinery in Baroda, India.
Hebei Pan Asia Long-Teng Paper Co., Ltd. ordered four paper mill
cranes for their plant in Hebei, China.
Stora Enso Maxau ordered a paper mill process crane for their mill in
Karlsruhe,Germany.
Marshall Space Flight Center ordered multiple Industrial cranes used
in support of activities, manufacturing and testing insulation and
components for the Space Shuttle for space rockets to be delivered to
NASA's George C. Marshall Space Flight Center, Huntsville, Alabama,
USA.
Bae Marine ordered the modification of two shipyard cranes for their
shipyard at Barrow-in Furness, Cumbria, UK.
Hecket Multiserv ordered four special cranes for the storage and
management of steel coils at their steel mill in La Louviere, Belgium.
W&P Zementwerke AG ordered an automated grabble crane to be used in
their cement mill, Peggau, Austria.
Konecranes (Shanghai) Co. Ltd. sold 72 CXT wire rope hoists for Mass
Transit Railways project in Taiwan to be used in the maintenance of
the ventilation fans in the railway tunnels.
Helsinki, February 11, 2004
The Board of Directors
Formal statement
Certain statements in this report are forward looking and are based on
managements 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.
19 (28)
DEVELOPMENT BY BUSINESS AND MARKET AREAS
Order Intake by Business Area
2003 % of 2003 2002 % of 2002
MEUR total MEUR total
Maintenance Services 292.8 (1 43 310.21) 47
Standard Lifting
Equipment 196.5 29 203.2 30
Special Cranes 184.9 28 154.9 23
./. Internal -62.4 -69.4
Total 611.91) 100 598.91) 100
1) Excl. Service Contract Base
Order Book (2
2003 2002
MEUR MEUR
Total 211.2 206.0
2) Percentage of completion deducted
Sales by Business Area
2003 % of 2003 2002 % of 2002
MEUR total MEUR total
Maintenance Services 361.3 50 372.4 47
Standard Lifting
Equipment 189.8 26 204.5 26
Special Cranes 178.6 24 209.2 27
./. Internal -65.2 -72.5
Total 664.5 100 713.6 100
Operating Income by Business Area (MEUR)
2003 2002
Operating % of 2003 Operatin % of 2002
Income total g total
sales Income sales
Maintenance Services 22.0 6.1 26.2 7.0
Standard Lifting
Equipment 18.0 9.5 19.5 9.5
Special Cranes 13.1 7.3 16.7 8.0
Group costs -29.5 -23.8
Consolidation items -2.1 -1.0
Total 21.5 37.6
20 (28)
Sales by Market
2003 % of 2003 2002 % of 2002
MEUR total MEUR total
Nordic and Central
Europe 165.1 25 179.4 25
EU (excl. Nordic) 178.6 27 220.9 31
Americas 221.3 33 242.4 34
Asia-Pacific 99.6 15 70.9 10
Total 664.5 100 713.6 100
Personnel by Business Area (at the End of the Period)
2003 % of 2003 2002 % of 2002
total total
Maintenance Services 2.662 61 2.698 61
Standard Lifting
Equipment 960 22 949 21
Special Cranes 614 14 685 15
Group Staff 114 3 109 3
Total Company 4.350 100 4.441 100
FINANCIAL PERFORMANCE
Statement of Income 2003 2002
MEUR MEUR
Sales 664.5 713.6
Other operating income 2.1 2.9
Share of result of participating interest
undertakings -0.3 -0.2
Depreciation and reduction in value -16.5 -15.5
Other operating expenses -628.4 -663.2
Operating profit 21.5 37.6
Financial income and expenses -2.6 -1.1
Income after financing items 18.9 36.5
Extraordinary items -8.1 0.0
Taxes -4.0 -11.8
Net income 6.7 24.6
21 (28)
2003 2002
MEUR MEUR
Dividend income 0.0 0.0
Interest income from current assets 1.1 1.9
Other financial income 1.0 1.5
Interest expenses -4.2 -3.9
Other financial expenses -0.6 -0.7
Total -2.6 -1.1
Investments
2003 2002
MEUR MEUR
Total (excl. Acquisitions) 12.4 13.9
CONSOLIDATED BALANCE SHEET
ASSETS 31.12.2003 31.12.2002
Non-current assets MEUR MEUR
INTANGIBLE ASSETS
Intangible rights 5.4 6.0
Goodwill 13.9 17.9
Group goodwill 5.4 5.6
Advance payments 7.9 5.8
32.6 35.3
TANGIBLE ASSETS
Land 3.9 3.8
Buildings 18.9 22.0
Machinery and equipment 31.3 29.8
Advance payments and construction in
progress 1.0 0.6
55.0 56.2
INVESTMENTS
Participating interests 3.5 1.0
Other shares and similar rights of
ownership 1.5 1.0
Own shares 5.5 0.0
10.4 2.0
Current assets
INVENTORIES
Raw materials and semi-manufactured
goods 36.6 39.6
Work in progress 33.0 30.4
Advance payments 2.9 4.0
72.4 73.9
22 (28)
LONG-TERM RECEIVABLES
Loans receivable 0.1 0.2
Other receivables 0.3 0.3
0.4 0.5
SHORT-TERM RECEIVABLES
Accounts receivable 126.4 123.4
Amounts owed by participating
interest undertakings 2.0 3.0
Other receivables 11.3 21.5
Deferred tax assets 6.0 4.0
Deferred assets 72.4 62.2
218.3 214.1
CASH IN HAND AND AT BANKS 13.2 15.2
Total current assets 304.2 303.7
TOTAL ASSETS 402.2 397.1
SHAREHOLDERS EQUITY AND LIABILITIES 31.12.2003 31.12.2002
MEUR MEUR
Equity
Share capital 28.6 28.6
Share premium account 21.8 21.8
Reserve for own shares 5.5 0.0
Equity share of untaxed reserves 3.4 3.3
Translation difference -5.9 -4.3
Retained earnings 103.2 99.2
Net income for the period 6.7 24.6
163.4 173.2
Minority share 0.1 0.1
Provisions 20.3 12.0
Liabilities
LONG-TERM DEBT
Bonds 25.0 25.0
Pension loans 1.5 2.0
Other loans 4.0 1.8
Deferred tax liability 2.0 2.6
32.5 31.4
CURRENT LIABILITIES
Loans from credit institutions 1.3 10.3
Pension loans 0.5 0.5
Bond with warrants 0.0 0.1
Advance payments received 26.2 16.5
Accounts payable 49.6 50.0
Amounts owed to participating
interest undertakings 0.1 0.0
Other short-term liabilities 37.3 21.7
Accruals 70.9 81.2
185.9 180.4
23 (28)
Total liabilities 218.4 211.9
TOTAL SHAREHOLDERS EQUITY AND
LIABILITIES 402.2 397.1
Interest-bearing debts 57.1 48.4
Contingent Liabilities and Pledged Assets (MEUR)
CONTINGENT LIABILITIES 2003 2002
For own debts
Mortgages on land and buildings 5.9 5.9
For own commercial obligations
Pledged assets 0.8 0.9
Guarantees 159.5 141.6
For associated companys debt
Guarantees 0.8 0.8
For others
Guarantees 0.1 0.1
OTHER CONTINGENT AND FINANCIAL
LIABILITIES
Leasing liabilities
Next year 6.7 7.3
Later on 11.6 11.5
Other liabilities 1.3 1.0
Total 186.7 169.1
Leasing contracts follow the normal
practices in corresponding countries.
Total by Category
Mortgages on land and buildings 5.9 5.9
Pledged assets 0.8 0.9
Guarantees 160.4 142.5
Other liabilities 19.6 19.8
Total 186.7 169.1
Notional Amounts of Derivative Financial Instruments (MEUR)
2003 2002
Foreign exchange forward contracts 441.7 411.4
Interest rate swap 25.0 25.0
Total 466.7 436.4
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 orderbook and equity represent approximately
one half of the total notional amounts.
24 (28)
CONSOLIDATED CASH FLOW 2003 2002
MEUR MEUR
Operating income (1 22.2 37.9
Depreciation 16.5 15.5
Financial income and expenses 2.6 4.4
Taxes -8.6 -11.6
Free cash flow 32.7 46.2
Increase (-), decrease (+) in
current assets -26.3 26.1
Increase (-), decrease (+) in
inventories -2.7 11.6
Increase (+), decrease (-) in
current liabilities 20.6 -17.6
Cash flow from operations 24.2 66.3
Capital expenditure and advance
payments to machines -9.1 -12.1
Capital expenditure and advance
payments to intangible and
financial assets -1.3 -3.4
Fixed assets of acquired companies -2.1 -6.8
Purchase of own shares -5.5 -9.9
Disposals of fixed assets 0.7 1.2
Investments total -17.3 -31.0
Cash flow before financing 6.9 35.4
Change of long-term debt
Increase (+), decrease (-) -0.6 -25.5
Change of short-term interest-
bearing debt
Increase (+), decrease (-) 6.0 3.1
Dividend paid -13.3 -13.2
External financing -7.9 -35.6
Correction items (2 -1.1 -1.4
Net financing -2.0 -1.6
Cash in hand and at banks at 1.1. 15.2 16.8
Cash in hand and at banks at 31.12 13.2 15.2
Change in cash -2.0 -1.6
1) Operating income after depreciation has been corrected by the
result of associated companies and the profit / loss of disposal of
assets.
2) Translation difference in cash in hand and at banks.
KCI KONECRANES GROUP 1999-2003
25 (28)
Business development 2003 2002 2001 2000 1999
Order intake MEUR 611.9 598.9 679.1 764.4 538.7
Order book MEUR 211.2 206.0 279.7 308.8 178.4
Net sales MEUR 664.5 713.6 756.3 703.0 591.5
of which outside
Finland MEUR 599.4 634.2 679.2 644.2 538.3
Export from Finland MEUR 258.9 256.9 263.5 217.8 180.7
Personnel on average 4,423 4,396 4,434 4,244 4,050
Capital expenditure MEUR 12.4 13.9 11.3 14.7 12.9
as a percentage of net
sales % 1.9 1.9 1.5 2.1 2.2
Research and
development costs MEUR 7.9 8.2 7.7 6.9 7.8
as % of Standard
Lifting Equipment 1) % 4.2 4.0 3.1 2.7 3.6
as % of Group net
sales % 1.2 1.1 1.0 1.0 1.3
Profitability
Net sales MEUR 664.5 713.6 756.3 703.0 591.5
Income from operations
(before goodwill
amortization) MEUR 24.8 40.9 59.4 43.7 34.8
as percentage of net
sales % 3.7 5.7 7.9 6.2 5.9
Operating income MEUR 21.5 37.6 55.3 39.6 32.1
as percentage of net
sales % 3.2 5.3 7.3 5.6 5.4
Income before
extraordinary items MEUR 18.9 36.5 52.4 34.0 30.2
as percentage of net
sales % 2.8 5.1 6.9 4.8 5.1
Income before taxes MEUR 10.7 36.5 52.4 34.0 30.2
as percentage of net
sales % 1.6 5.1 6.9 4.8 5.1
Net income MEUR 6.7 24.6 35.3 23.4 21.8
as percentage of net
sales % 1.0 3.4 4.7 3.3 3.7
26 (28)
Key figures and
balance sheet
Shareholders equity MEUR 163.4 173.2 180.2 155.3 143.7
Balance Sheet MEUR 402.2 397.1 455.9 450.0 352.3
Return on equity % 7.5 14.2 22.0 16.4 16.3
Return on capital
employed % 10.8 17.8 24.3 19.4 21.7
Current ratio 1.5 1.6 1.6 1.4 1.7
Solidity % 42.6 45.5 41.4 35.8 42.2
Gearing % 27.8 19.1 28.9 57.7 35.8
Shares in figures
Earnings per share EUR 0.88 1.69 2.40 1.59 1.48
Equity per share EUR 11.24 12.11 11.75 10.06 9.27
Cash flow per share EUR 1.72 4.54 2.93 - 0.29 - 0.33
Dividend per share EUR 1.00(* 0.95 0.90 0.71 0.71
Dividend/earnings % 113.6 56.2 37.5 44.7 48.0
Effective dividend
yield % 3.6 4.1 3.2 2.6 1.9
Price/earnings 31.4 13.8 11.9 17.0 25.8
Trading low / EUR 17.20 19.80/ 25.00/ 25.10/ 23.05/
high 29.39 36.83 38.46 39.90 38.30
Average share price EUR 22.49 28.74 31.72 32.67 30.24
Year-end market
capitalization MEUR 387.6 333.2 427.5 405.0 572.7
Number traded (1000) 12,662 11,939 8,581 7,379 13,198
Stock turnover % 90.2 83.4 57.2 49.2 88.0
* The Boards proposal to the AGM
1) R&D serves mainly Standard Lifting Equipment
CALCULATION OF KEY FIGURES
Return on equity = ((Income before extraordinary items - taxes) :
(Equity - own shares (average during the period)) x 100
Return on capital employed = ((Income before taxes + interest paid +
other financing cost) : (Total amount of equity and liabilities - non-
interest bearing debts - own shares (average during the period)) x
100
Current ratio = Current assets : Current liabilities
Solidity = ((Shareholders equity - own shares) : (Total amount of
equity and liabilities - advance payment received - own shares)) x 100
Gearing = ((Interest-bearing liabilities - liquid assets - loans
receivable) : (Shareholders equity + minority share - own shares)) x
100
27 (28)
Earnings per share = (Net income +/- extraordinary items) : (Number of
shares - number of own shares)
Equity per share = (Shareholders equity in balance sheet - own
shares) : (Number of shares - number of own shares)
Cash flow per share = Cash flow from operations : (Number of shares
number of own shares)
Effective dividend yield = (Dividend per share : Share price at the
end of financial year) x 100
Price per earnings = Share price at the end of financial year :
Earnings per share
Year-end market capitalization = Number of shares multiplied by the
share price at the end of year
Average number of personnel = Calculated as average of number of
personnel in quarters
Note!
The numbers are rounded to nearest EUR 0,1 million. The key figures
are calculated from exact data.
Dividend proposal
The Board of Directors propose to the AGM that a dividend of EUR 1.00
per share will be paid for the fiscal year 2003. The dividend will be
paid to persons shareholders, who are entered as shareholders in the
share register on the record date March 9, 2004. Dividend payment date
is March 16, 2004.
Teleconference
An international teleconference will be arranged today on 11 February,
2004 at 4.00 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 two working days at +44-
(0)20 8288 4459, code 713782.
Internet
This report is also available on the Internet at www.kcigroup.com. An
audio recording of Mr Gustavsons presentation at the teleconference
will be available on the Internet later on February 11.
28 (28)
Annual General Meeting
The Annual General Meeting 2004 will be held on 4 March, 2004 at 11.00
a.m. at Group headquarters (address: Koneenkatu 8, 05830 Hyvinkää,
Finland). A press release on the decisions made at the AGM will be
published upon conclusion of the meeting.
The proposals for the AGM 2004 will be published on 11 February, 2004.
Next report
Interim report, 1st quarter, will be published on 11 May, 2004 at
10.00 a.m. Finnish time (8.00 a.m. London time).
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 Teuvo Rintamäki, Chief Financial Officer, tel. +358-20 427 2040,
Ms Franciska Janzon, IR Manager, tel. +358-20 27 2043
DISTRIBUTION
Helsinki Exchanges
Media
