Konecranes announces post-integration financial targets
Konecranes Plc’s Board of Directors has decided on the company's post-integration financial targets. The Group’s adjusted EBITA margin target for 2020 is based on the targeted annual sales growth during 2018-2020 and the previously announced MHPS acquisition-related cost synergies of EUR 140 million. Konecranes’ financial guidance for 2017 as announced in the January-September interim report on October 25, 2017, remains unchanged.
| New financial targets | Previous financial targets |
| Growth | Growth |
| Group sales growth (CAGR) 5% in 2018-20 | The Group has a vision to reach a global market share of 30%. |
| Profitability | Profitability |
| Group adjusted EBITA margin 11% in 2020 | Group has a target to reach 10% operating (EBIT) margin over the cycle. |
| Capital structure | Capital structure |
| Interest-bearing net debt to equity ratio (gearing) below 80% | Optimal interest-bearing net debt to equity ratio (gearing) is considered to be 50-80%. |
Panu Routila, President and CEO of Konecranes, commented: “The integration of MHPS is running ahead of our expectations and we expect to implement EUR 50 million synergies on a run-rate basis by the end of 2017.
We are now laying the ground for growth initiatives that will be started in 2018. During the next years, we expect Group’s sales growth to be led by Business Area Service, which will benefit from the new growth opportunities created by MHPS’ large installed base and by Business Area Port Solutions with cross-promotion of the enlarged offering.
The management considers a solid double-digit adjusted EBITA margin to be achievable in Business Area Service while Business Area Industrial Equipment and Business Area Port Solutions are expected to approach high single-digit adjusted EBITA margin by 2020.”
The new financial targets and steps to reach the new financial targets will be presented at the Capital Markets Day to be held in Düsseldorf on December 14-15, 2017.
More information about the Capital Markets Day is available at www.konecranes.com/investors/CMD-2017.
KONECRANES PLC
Miikka Kinnunen
Vice President, Investor Relations
FURTHER INFORMATION
Miikka Kinnunen, Vice President, Investor Relations, Konecranes Plc, tel. +358 (0)20 427 2050
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity enhancing lifting solutions as well as services for lifting equipment of all makes. In 2016, Group (comparable combined company) sales totaled EUR 3,278 million. The Group has 16,600 employees at 600 locations in 50 countries. Konecranes shares are listed on the Nasdaq Helsinki (symbol: KCR).
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www.konecranes.com