KCI KONECRANES H1/2004: CONTINUING ORDER
KCI KONECRANES PLC STOCK EXCHANGE RELEASE 1 (16)
12 August, 2004 10.00 a.m.
KCI KONECRANES H1/2004: CONTINUING ORDERS GROWTH
The growth in orders accelerated in Q2/04 to 21.6 % over Q2/03 pushing
H1/04 growth to 18 % over H1/03.
In local currencies, H1/04 orders growth is 22 %.
The corresponding sales growth is still low, but will gain momentum in
H2/04.
The operating income before restructuring, best evidenced in rolling
twelve months figures, improved 8.2 %. The adverse currency
environment prevailed.
The order book, now at 268 MEUR, stands 24.9 % higher y-o-y, and 26.9
% higher compared to year-end 2003.
First half year LTM LY
MEUR 1-6/ 1-6/ Chg % 7/03- 7/02- Chg % 1-12/
SALES 04 03 6/04 6/03 03
Maintenance
Services 157.8 156.1 1.1 340.6 342.8 -0.7 338.8
Standard
Lifting
Equipment 99.2 97.7 1.5 213.8 217.2 -1.6 212.3
Special Cranes 88.3 91.1 -3.1 175.8 193.7 -9.3 178.6
Internal Sales -27.8 -32.4 -14.1 -60.7 -74.5 -18.5 -65.2
Sales total 317.5 312.5 1.6 669.5 679.3 -1.4 664.5
Operating income
before
restructuring 7.8 7.5 4.7 34.4 31.8 8.2 34.1
Restructuring
costs 0.0 -7.0 -5.6 -7.0 -12.6
Operating income 7.8 0.5 28.8 24.8 16.2 21.5
Financial income
and expenses -1.0 -1.0 -2.7 -1.5 -2.6
Income before
taxes and
extraordinary
items 6.8 -0.5 26.2 23.3 12.4 18.9
Extraordinary
items 0.0 0.0 -8.1 0.0 -8.1
Taxes -2.2 0.0 -6.3 -7.7 -4.0
Net income 4.6 -0.5 11.7 15.6 -24.5 6.7
Earnings per
share (EUR) 0.32 -0.04 1.24 1.08 0.88
2 (16)
ORDERS RECEIVED
Maintenance
Services 154.0 145.3 6.0 277.8 278.2 -0.2 269.0
Standard
Lifting
Equipment 123.6 110.6 11.7 233.2 218.9 6.5 220.3
Special Cranes 104.1 74.0 40.7 215.1 137.7 56.2 184.9
Internal Orders -29.2 -31.2 -6.4 -60.4 -64.5 -6.4 -62.4
Orders Received
total 352.5 298.7 18.0 665.7 570.3 16.7 611.9
ORDER BOOK 268.0 214.6 24.9 - - - 211.2
Comment on first half year results:
The second quarter was in line with expectations. The growth in orders
that started one year ago continued and improved. Q2/04 growth of 21.6
% helped push first half year growth to 18 % (22 % in local
currencies).
In particular, net Maintenance orders in Q2/04 were 11 % higher
compared to the orders in Q2/03, in local currencies. The cancellation
rate now runs at 7% p.a., significantly down from last year. Both
other Business Areas posted robust increases in orders during Q2
+11.9 % (Standard Lifting) and 53.9 % (Special Cranes).
The increase in sales and profits is expected to gain momentum during
the next quarters.
Restructuring measures are running on schedule and on budget.
Comment on year-end results:
With four quarters of strong orders growth, sales will now start
growing.
At year-end, the Group is expected to post an organic growth (run
rate) well in excess of ten percent.
Earnings are expected to grow in line with sales, burdened by the
unfavourable currency environment but boosted by successful
restructuring savings.
Stig Gustavson, President and CEO
A well balanced growth
The Group is now back on its original double digit organic growth
track.
This growth is well balanced. It is not only dependent on the Far
East, in particular Chinese growth neither is it only based on world
trade gaining speed and harbours investing, nor is it only related to
the American economy starting to invest again.
Instead, we see a much broader picture. Yes, Americans have started to
invest. In addition, American industrial restructuring and
consolidation, that previously took away large parts of our American
Maintenance business, now fuels new Maintenance growth.
3 (16)
In Europe, the sentiment in Germany is changing rapidly. Our strategy
of entering the tough German market, the biggest industrial market in
Europe, is now paying dividends.
Our investments into R&D also come in handy. New products and
solutions help us capitalise on new growth in industries like the
defence industry, the steel industry, the automotive industry.
With a reborn industrial interest in lean manufacturing, our stubborn
commitment to modern equipment combined with professional maintenance
is a winner.
We have indeed been through a period of no growth and even negative
growth. I think we have spent this time wisely. Instead of going for
growth at whatever price, we have maintained our profitability and
stuck to our model. We have not cut back our R&D spending and
training.
Now with growth back on the agenda, we will benefit. Our cash flow is
robust (gearing and net debt is decreasing in spite of rapid operative
growth) and our product portfolio is getting stronger all the time.
Hyvinkää, 12 August, 2004
Stig Gustavson
First Half Year 2004
General Overview
Group total sales during the first six months (January-June) totalled
EUR 317.5 (312.5) million (Numbers in brackets are corresponding
values for H1/2003 unless otherwise indicated.). The growth was 1.6 %.
Counted at comparable currency rates the growth was 4.5 %. There was
growth in our Business Areas Maintenance Services and Standard Lifting
Equipment, whereas Special Cranes had lower sales, due to timing of
shipments.
Group total orders received were EUR 352.5 (298.7) million. The growth
was 18.0 % or 22 % counted at comparable currency rates. There was
growth in all Business Areas and the speed of growth accelerated
during Q2. The order intake during the second quarter was 21.6 %
higher than during last years Q2 and 23.9 % higher counted at
comparable currency rates. The order growth stayed very strong in Asia
and Australia, but orders grew clearly also in Germany as well as in
the Groups American service and crane and hoist operations.
The Groups total order book at the end of the period was EUR 268.0
(214.6) million. This is up by 24.9 % year on year and by 26.9 % from
the year-end 2003. The order book has grown in all Business Areas.
The Groups operating income was EUR 7.8 (0.5) million. The comparable
number last year included EUR 7.0 million restructuring charges.
Nevertheless, in every Business Area, the profitability improved. The
Group costs and consolidation items grew somewhat because of a modest
growth in development activities. The Groups operating income before
4 (16)
goodwill amortizations (EBITA) was EUR 8.8 (2.0) million or 2.8 (0.6)
% on sales. The operating income before depreciations and
amortizations (EBITDA) was EUR 15.1 million or 4.7 (2.7) % on sales.
The development during Q2/2004 compared to Q2/03 was the following:
(MEUR) Q2/04 Q2/03 Change %
Orders received 181.5 149.2 +21.6
Sales 165.3 161.7 +2.2
EBIT 5.3 -0.9
EBIT before
restructuring 5.3 5.7
Income before taxes and
extraordinary items 4.9 -1.4
Net income 3.3 -1.1
The small decrease in EBIT before restructuring charges relates to the
sales recognition of certain Special Crane and modernization projects.
The net of financing costs and income during H1/2004 was EUR 1.0 (1.0)
million.
Group income before extraordinary items and taxes was EUR 6.8 (-0.5)
million.
Income taxes were EUR 2.2 (0.0) million based on the estimated 33 %
effective tax rate for the whole year.
Group net income was EUR 4.6 (-0.5) million and earnings per share
(EPS) 0.32 (-0.04) euros.
The cash flow from operations was EUR 19.9 (-10.1) million. The cash
flow after net of capital expenditures and disposals was EUR 16.2 (-
22.1) million. The comparable figure last year included an acquisition
of own shares valued at 5.48 million euros.
The Groups total interest bearing debt was EUR 64.5 (85.6) million.
The net interest bearing debt was EUR 42.7 (72.4) million. The net
gearing reached 28.6 (47.4) % and the solidity ratio was 41.0 (40.0)
%.
The Groups return on total capital employed was 8.5 (1.5) % and the
return on equity 5.9 (-0.6) %.
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. This pattern will repeat itself
again during this year.
5 (16)
Review by Business Areas
Change in the reporting structure
In order to improve accuracy and relevance of reporting, the
industrial crane portion of our American service operation is reported
starting January 2004 in the Business Area Standard Lifting Equipment
(see Q1/04 report for more details). In order to make 2004 figures
comparable with 2003 the following changes have been made to the full
year 2003 figures: Maintenance Services orders received 2003 was
reduced by EUR 23.8 million, sales was reduced by EUR 22.5 million and
EBIT has been increased by EUR 0.4 million. The corresponding Standard
Lifting Equipment numbers have been amended accordingly.
Maintenance Services
January to June sales was EUR 157.8 (156.1) million, which is 1.1 % up
compared to the previous year. At comparable currency rates sales grew
by 4.7 %. Q2/04 sales was EUR 83.3 million, which is 6 % up from last
year, at comparable currency rates.
The operating income in January-June was EUR 7.1 (6.8) million, which
is 4.4 % more than it was a year ago. The profitability improved
clearly in field service activities mainly due to lower turnover of
the contract customer base and payroll cuts. Contract cancellations
reduced the value of the contract base at the rate of 7 % p.a. but new
contracts increased the value at the rate of 17 % p.a. Thus the net
growth in value of the contract base was 10 % at an annualised level.
This level of churn in the base is much lower compared to what it was
during the whole of last year (new contracts gain +21 %, reduction due
to cancellations -16 %, net 5 %), but historically still at a high
level.
The profit development was affected negatively by low sales in
modernisation and crane upgrade projects. This development will
reverse itself when orders already on hand will be recorded as sales.
The stronger euro had a small negative translational profit impact in
consolidation.
The order intake was EUR 154.0 (145.3) million, up by 6.0 % or 9.8 %
at comparable currency rates. Also the contract base development was
positive; the customer turnover rate came down form last year and the
contract base continued to grow. In terms of number of units there are
now over 223,000 cranes and hoists included in the contract base. This
is 6.4 % more than at the end of last year. The order activity
accelerated during the second quarter. Maintenance Services orders
grew by 11 % at comparable currency rates during the second quarter
compared to last year.
The number of employees in the Business Area at the end of the period
was 2619 (2667).
6 (16)
Standard Lifting Equipment
Standard Lifting sales in H1/04 was EUR 99.2 (97.7) million. The
growth was 1.5 % and 4.6 % at comparable currency rates. The growth
was very strong in the Asia-Pacific area, but there was a positive
development also in important markets North America and Germany.
The operating income was EUR 7.7 (6.4) million or 7.8 (6.6) % on
sales. The year on year was 20.3 %. The profitability improvement was
based on volume growth in sales and lower costs. The efficiency
improvement programs (production and sourcing in China, outsourcing of
motor production etc.) are running on schedule.
The stronger euro had a negative effect of approx. EUR 2.5 million on
operating income during H1/04 compared to H1/03. The profitability
impact of higher raw material prices was small and it has been taken
into account in sales pricing.
The order intake was EUR 123.6 (110.6) million, up by 11.7 % or 15.8 %
at comparable currency rates. The order intake in Q2/04 was 62.8
(56.1), up by 11.9 % from last year.
The order book now stands one third higher compared to one year ago
and 74 % up from the end of last year. This supports a positive sales
and profitability development during H2/04.
The number of employees at the end of the period was 1006 (1001).
Except for the growth in China the employment number will continue to
decrease.
Special Cranes
Special Crane sales was EUR 88.3 (91.1) million in H1/04. The decrease
in sales was 3.1 % due to the timing of sales recognition of the order
book. The operating income was 4.8 (4.5) or 5.4 % (4.9 %) on sales.
The cost base cuts contributed positively to the profitability
development and compensated for the negative effects of euro and lower
sales.
Orders received were 104.1 (74.0) million or 40.7 % more than it was
last year. At comparable currency rates the growth was 43.8 %.
Geographically the growth was strongest in Asia, but orders in our US
and UK operations also grew strongly. The strongest growth occured in
cranes for heavy process industries, power plants and the automotive
sector as well as in cranes for harbours.
The order book for Special Cranes continued to grow and now stands at
a level, which is 34.1 % higher compared to one year ago. The level of
orders on hand is sufficient to secure a good loading situation for
the second half of the year.
7 (16)
The work to cut costs continues as planned in Europe and the work to
put up a new production line for heavy components in China has
started. The new factory will be located next to our existing Standard
Lifting Equipment factory in Shanghai.
The number of employees at the end of the period was 594 (663). Except
for the growth in China the employee number will continue to decrease.
Group costs and consolidation items
Group costs were EUR 10.3 (16.0) million. These costs, which mainly
consist of Group development, legal, financing and management costs
last year also included a EUR 7 million restructuring charge.
Excluding this one-off item these costs increased by EUR 1.3 million
relating to various development projects (R&D, marketing and M&A).
Group consolidation items were slightly higher than last year mainly
due to a larger Group internal profit elimination.
Sales by market
Sales by different market areas developed as follows:
H1/2004 H1/2003 Change %
MEUR Share of MEUR Share of Official At
total % total % comparable
currency
rates
Europe 151.8 47.8 162.9 52.2 -6.8 -6.7
America 96.7 30.5 108.6 34.8 -11.0 -3.7
Asia-
Pacific 69.0 21.7 41.0 13.1 +68.3 +69.1
TOTAL 317.5 100.0 312.5 100.0 +1.6 +4.5
Currency rates
The average consolidation rates in some important currencies developed
as follows:
June 2004 June 2003 Change %
USD 1.22711 1.10504 -9.95
CAD 1.6426 1.6049 -2.30
GBP 0.67326 0.68572 1.85
CNY 10.2543 9.2022 -10.26
SEK 9.1659 9.1625 -0.04
NOK 8.4497 7.7615 -8.14
AUD 1.6627 1.7924 7.80
8 (16)
Group structure and important events
On April 29, 2004 KCI Konecranes American subsidiary, Konecranes, Inc.
acquired the assets of Dwight Foote, Inc., a Hartford, Connecticut
area industrial crane and service supplier. With this acquisition,
KCI Konecranes is now clearly a market leader in the north eastern
U.S. market for industrial cranes and maintenance services.
On May 11, 2004 KCI Konecranes announced in a press release a plan to
double its manufacturing capacity in China. The production will be
extended to cover also higher lifting capacities in the Special Crane
range. The new factory site is located next to KCI Konecranes existing
facility in Shanghai and will add 4,000 sqm in manufacturing floor
space. The new facility will be completed before mid 2005. Included in
the expansion plans is also a new Special Cranes assembly site located
nearby Bejing in Tianjin. The site will be operated by an external
vendor. The expansion will further strengthen the Groups position in
the hoist and crane market in China and create further opportunities
for cost-efficient production. The expansion will initially create
jobs for some 100 people.
In May 2004 KCI Konecranes established a wholly-owned subsidiary
Konecranes s.r.l in Italy. Italy is a large crane market and KCI
Konecranes has previously served the market mainly through
distributors, JV-partners and licensees. KCI Konecranes will now
provide the market with its entire range of lifting equipment and will
set out to build a maintenance services network in Italy.
On June 3, 2004 KCI Konecranes and the Kanoo Group have established a
joint venture, Crane Industrial Services LLC, in the UAE. KCI
Konecranes holds a 49 percent ownership stake in the joint venture.
The joint venture will give customers in the Gulf region easy access
to a complete range of overhead lifting solutions including crane
maintenance services for virtually all industries including harbours.
During the second quarter, KCI Konecranes decided to merge three
subsidiaries in the Finnish Special Cranes Business Area to one legal
company. This change aims mainly to simplify the Group structure,
speed up decision-making, but also reduce administrational costs. With
these mergers the juridical structure will also better reflect the
operational organisation of the Group.
Important orders
Here are some examples on orders received during April-June 2004. The
list illustrates our reach, both in terms of customer base and
geographical coverage.
Pulp & Paper
Metso Paper Inc. ordered three paper mill process cranes of over 120
ton capacity each and several Industrial cranes to the Stora Enso
Kvarnsveden Project in Borlänge, Sweden
9 (16)
Stora Enso ordered the modernisation of a log handling crane by their
paper mill in Skoghall, Sweden.
UPM ordered the modernisation of 5 paper mill cranes at three of their
paper mills in Kaipola, Jämsänkoski and Pietarsaari, Finland.
Steel
The American breakthrough for KCI Konecranes technology continues.
Structural Metals Inc. (SMI) of Seguin, Texas, USA has ordered a 230-
ton AC-powered ladle crane with a 65-ton auxiliary hoist for their
steel mill. SMIs ladle crane is a very similar design to the 200-ton
ladle crane recently purchased by Nucor-Texas for their new facility
in Jewett, Texas.
SSAB of Sweden ordered a fully automated plate-handling crane with
vacuum lifters for its steel mill in Oxelösund, Sweden.
Russian steelmaker OAO Zapadno-Sibirskij metallurgicheskij kombinat
(Zapsib) contracted ZAO Konecranes Russia to engineer and supply nine
heavy-duty steel mill cranes for the expansion of their factory in
Western Siberia.
Sheffield Steel ordered a 50 ton Billet Handling crane for their steel
mill in Sand Springs, Oklahoma, USA.
Voest alpine Stahl Donawitz GmbH, ordered several electric overhead
travelling process cranes for handling rails for their facility in
Donawitz, Austria.
Outokumpu Stainless B.V. ordered a semi automated process crane for
their facility in Sas van Gent, Netherlands.
Power
Energitekniska Konstruktioner AB (ETK) of Luleå, Sweden, ordered two
fully automated refuse handling cranes that will go into service at
two new municipal waste-to-energy plants Skövde Värme AB and Eksjö
Energi AB in Sweden.
Shanghai Pudong Engineering and Construction Management Ltd,
Changshu Pufa Thermoelectric Energy Ltd. ordered two fully
automated refuse handling cranes with grapple to their facility
in Changshu city, Jiangsu province, China.
Alstom of Switzerland ordered six 70 ton Power Plant cranes and
smaller capacity hoists and cranes for their project in
Cartagena, Spain.
Harbours
The Port of Houston Authority in Texas, USA, placed a repeat order for
seven Konecranes Rubber Tired Gantry Cranes (RTG).
10 (16)
Terminal de Contenidores de Valencia (TCV), part of GRUP TCB of Spain,
contracted Konecranes VLC for the delivery of the first three
Konecranes RTG cranes to Spain.
South Carolina State Ports Authority in Charleston, USA placed a
repeat order for four 16-wheel RTGs for Port of Charlestons Wando
Welch Terminal. The order included an option for 4 additional RTGs.
The Bristol Port Company ordered a Gantry Type Grab Bulk Unloader for
its Royal Portbury Dock in Bristol, UK.
Automotive
General Motors ordered a 50 ton stamping plant crane for their
facility in Shanghai China.
Volvo ordered a steel coil handling crane for their facility in
Olofström, Sweden.
BMW ordered an 80/40-ton industrial crane to be used in the casting
production for fenders and bumpers at their facility in Landshut,
Germany.
Other
Fluor Intercontinental, Inc. Houston, Texas, USA ordered several
explosion proof cranes for the Exxon Mobil Sakhalin Island Project,
Russia.
Share price performance and trading volume
During January-June 2004 KCI Konecranes share price increased by
10.51 % and closed at EUR 30.50. 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 2.88 %, the HEX Portfolio Index
increased by 4.02 % and the HEX Metal & Engineering Index increased by
14.05 %.
Total market capitalisation at the end of June was EUR 436 million
(incl. own shares held by the company), the 36th highest market value
of companies listed on Helsinki Exchanges.
The trading volume totalled 7,794,552 shares of KCI Konecranes, which
represents 55.50 % of the outstanding shares (excl. own shares held by
the company). In monetary terms trading was EUR 229 million, which was
the 27th largest trading of companies listed on Helsinki Exchanges.
The non-Finland-based shareholding at the end of June was 52.95 %
(56.20 %).
At the end of June KCI Konecranes Plc held 264,100 of the companys
own shares with a total nominal value of EUR 528,200 million, which is
1.85 % of the total amount of 14,308,630 shares and votes.
11 (16)
On May 5, 2004 Franklin Resources said that it controlled the voting
rights pertaining to 15.32% of the shares of KCI Konecranes Plc
through its mutual funds and separate accounts managed by affiliated
investment advisers.
On April 30, 2004 KCI Konecranes Plc reduced the round lot size of its
share (trading code KCI1V) from the current 100 to 50 shares.
Hyvinkää, August 12, 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.
Statement of Income (MEUR)
1-6/2004 1-6/2003 1-12/2003
Sales 317.5 312.5 664.5
Share of result of
participating interest
undertakings -0.3 -0.2 -0.3
Depreciation -7.2 -8.1 -16.5
Other operating expenses -302.2 -303.7 -626.3
Operating income 7.8 0.5 21.5
Interests, net -1.4 -1.4 -3.1
Other financial income and
expenses 0.4 0.4 0.5
Extraordinary items 0.0 0.0 -8.1
Income before taxes 6.8 -0.5 10.7
Taxes -2.2 (1 -0.0 -4.0
Net Income for the period 4.6 -0.5 6.7
Profit /share (EUR) 0.32 -0.04 0.88
1) According to estimated tax rate
12 (16)
Consolidated Balance Sheet (MEUR)
6/2004 6/2003 12/2003
Fixed Assets 94.8 97.8 98.0
Inventories 89.6 84.4 72.4
Receivables and other
current assets 196.6 211.8 218.6
Cash in hand and at
banks 21.8 13.0 13.2
Total assets 402.8 407.0 402.2
Equity 154.4 158.2 163.4
Minority Interest 0.1 0.1 0.1
Provisions 19.4 17.5 20.3
Long-term debt 32.2 33.7 32.5
Current liabilities 196.8 197.6 185.9
Total shareholders
equity and liabilities 402.8 407.0 402.2
Gearing 28.6% 47.4% 27.8%
Solidity 41.0% 40.0% 42.6%
Return on capital LTM 04 LTM 03
employed (1 8.5% 13.7% 1.5% 11.7% 10.8%
Equity/share(EUR) 10.60 10.88 11.24
1) Calculated on annual basis
Net Interest bearing liabilities (MEUR)
6/2004 6/2003 12/2003
Long- and short-term
interest-bearing
liabilities -64.5 -85,6 -57.1
Cash and cash equivalents
and other interest bearing
assets 21.8 13.2 13.3
Total -42.7 -72.4 -43.8
Consolidated cash flow (MEUR)
1-6/2004 1-6/2003 1-12/2003
Operating income 7.8 0.5 21.5
Depreciation 7.2 8.1 16.5
Financing income and
expenses -1.9 -1.2 2.6
Taxes -1.9 0.0 -8.6
Other adjustments 0.4 0.1 0.7
Change in working capital 8.3 -17.6 -8.4
Cash flow from operations 19.9 -10.1 24.2
Net Investments -3.6 -12.1 -17.3
Cash flow before financing 16.2 -22.1 6.9
Change in debt,increase (+),
decrease (-) 6.2 33.8 5.5
13 (16)
Dividend paid -14.0 -13.3 -13.3
Correction items (1 0.2 -0.6 -1.1
Net financing 8.6 -2.2 -2.0
Cash and bank deposit at
beginning of period 13.2 15.2 15.2
Cash and bank deposit at end
of period 21.8 13.0 13.2
Change of Cash 8.6 -2.2 -2.0
1) Translation difference in cash in hand and banks
Contingent Liabilities and Pledged Assets (MEUR)
6/2004 6/2003 12/2003
Mortgages and pledged assets
For own debts 5.9 5.9 5.9
For commercial guarantees 0.4 0.7 0.8
Own commercial guarantees 95.1 141.4 159.5
Guarantees
For associated companys debt 0.8 0.8 0.8
For others 0.1 0.1 0.1
Leasing liabilities 16.4 17.1 18.3
Other liabilities 1.3 1.4 1.3
Total 120.0 167.4 169.1
Notional Amounts of Derivative Financial Instruments (MEUR)
6/2004 6/2003 12/2003
Foreign exchange
forward contracts 507.0 445.9 441.7
Interest rate swap 25.0 25.0 25.0
Currency options 0.0 187.3 0.0
Total 532.0 658.2 466.7
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
1-6/2004 1-6/2003 1-12/2003
Total (excl. acquisitions
of subsidiaries) (MEUR) 5.5 7.7 12.4
14 (16)
DEVELOPMENT BY BUSINESS AND MARKET AREA
Sales by Business Area (MEUR)
1-6/2004 1-6/2003 LTM* LTM 1-12/
Year ago 2003
Maintenance
Services 157.8 156.1 340.6 342.8 338.8
Standard Lifting
Equipment 99.2 97.7 213.8 217.2 212.3
Special Cranes 88.3 91.1 175.8 193.7 178.6
./. Internal -27.8 -32.4 -60.7 -74.5 -65.2
Total 317.5 312.5 669.5 679.3 664.5
Operating Income by Business Area (MEUR)
1-6/2004 1-6/2003 1-12/2003 LTM* LTM
Year
ago
MEUR % MEUR % MEUR % MEUR MEUR
Maintenance
Services 7.1 4.5 6.8 4.4 22.4 6.6 22.7 23.0
Standard
Lifting
Equipment 7.7 7.8 6.4 6.6 17.6 8.3 18.9 17.5
Special
Cranes 4.8 5.4 4.5 4.9 13.1 7.3 13.4 13.8
Group costs -10.3 -16.0 -29.5 -23.9 -28.3
Consolidation
items -1.5 -1.2 -2.0 -2.3 -1.2
Total 7.8 2.5 0.5 0.2 21.5 3.2 28.8 24.8
Personnel by Business Area (at the End of the Period)
6/2004 6/2003 12/2003
Maintenance Services 2,619 2,667 2,622
Standard Lifting
Equipment 1,006 1,001 1,000
Special Cranes 594 663 614
Group staff 123 112 114
Total 4,342 4,443 4,350
Average number of
personnel during
period 4,330 4,457 4,423
* LTM = last 12 months (full year 2003 ./. six months 2003 + six
months 2004)
15 (16)
Order Intake by Business Area (Excl. Service Contract Base)(MEUR)
1-6/2004 1-6/2003 LTM* LTM 1-12/
Year ago 2003
Maintenance
Services 154.0 145.3 277.8 278.2 269.0
Standard Lifting
Equipment 123.6 110.6 233.2 218.9 220.3
Special Cranes 104.1 74.0 215.1 137.7 184.9
./. Internal -29.2 -31.2 -60.4 -64.5 -62.4
Total 352.5 298.7 665.7 570.3 611.9
Order Book (Excl. Service Contract Base)
6/2004 6/2003 12/2003
Total (MEUR) 268.0 214.6 211.2
Sales by Market (MEUR)
1-6/2004 1-6/2003 LTM* LTM 1-12/
Year ago 2003
Nordic and Eastern
Europe 56.5 77.1 144.5 169.9 165.1
EU (excl. Nordic) 95.3 85.8 188.0 205.2 178.6
Americas 96.7 108.6 209.4 221.9 221.3
Asia-Pacific 69.0 41.0 127.6 82.4 99.6
Total 317.5 312.5 669.5 679.4 664.5
* LTM = last 12 months (full year 2003 ./. six months 2003 + six 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 12 August,
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.
16 (16)
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 12 August.
Next report
Interim Report January-September will be published on 5 November, 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
Investor Relations 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. +358-20 427 2043
DISTRIBUTION
Helsinki Exchanges
Media
