KONECRANES CHANGES SEGMENT REPORTING
Konecranes is introducing new reporting segments. From the beginning of 2010,
Konecranes will report two Business Areas: Service and Equipment. Previously the
number of reporting segments was three: Service, Standard Lifting and Heavy
Lifting. More information than before will be provided for each segment, and the
allocation of Group costs into the segments has been redefined to improve
transparency.
Konecranes changed its structure from the beginning of 2010 so that Business
Areas Standard Lifting and Heavy Lifting were merged into one Business Area:
Equipment. Business Area Equipment is internally further divided into five
Business Units: Industrial Cranes, Components, Port Cranes, Lifttrucks and
Nuclear Cranes. The reason for the change is the development in both customers'
buying behaviour and Konecranes' technology and supply platforms, which made the
previous way of dividing the equipment offering into Standard Lifting and Heavy
Lifting not optimal. There are no changes in the structure of Business Area
Service.
Business Area Service is headed by Hannu Rusanen, Executive Vice President, and
Business Area Equipment by Mikko Uhari, Executive Vice President.
External segment reporting will also be changed to match with the operational
structure of the group. From 2010, Konecranes will be reporting two segments,
Service and Equipment. While the number of segments will be reduced from three
to two, Konecranes will disclose more information than before about the segments
on a quarterly basis. The new information includes EBITDA, depreciation and
impairments, capital employed, ROCE and capital expenditure. To further improve
the transparency of segment profitability, the allocation of Group costs into
the business areas has been redefined. Previously, centralized Market
Operations, procurement, R&D and IT costs were reported as unallocated group
costs. From 2010 these costs will be fully allocated to the business areas. The
reporting of centralized legal, marketing & communications, finance, HR and
general management costs will remain unchanged and these will continue to be
shown as unallocated group costs. Additionally, the reporting of elimination of
internal margins (consolidation items) in inventories will change as a result of
fewer segments and internal margins within the business areas being incorporated
in the operating profit of the respective business area. In 2009, the reported
unallocated group costs and consolidation items totaled EUR 56.5 million whereas
the corresponding restated figure is EUR 18.9 million.
The comparison figures - incorporating the change in reporting segments and
redefined allocations of group costs and internal margins - are presented below.
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| 1-3/2009 | | | | |
--------------------------------------------------------------------------------
| MEUR | Service | Equipment | Unallocated | Total |
| | | | items / | |
| | | | Eliminations | |
--------------------------------------------------------------------------------
| Orders | 125.6 | 263.9 | -19.8 | 369.7 |
| received | | | | |
--------------------------------------------------------------------------------
| Order book | 109.1 | 701.9 | -19.0 | 792.0 |
--------------------------------------------------------------------------------
| Net sales | 169.7 | 304.6 | -32.2 | 442.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 18.0 | 30.9 | -5.3 | 43.6 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.6 % | 10.1 % | | 9.9 % |
--------------------------------------------------------------------------------
| Depreciation | -2.3 | -4.1 | -0.4 | -6.8 |
| and | | | | |
| impairments | | | | |
--------------------------------------------------------------------------------
| Operating | 15.7 | 26.8 | -5.7 | 36.8 |
| profit (EBIT) | | | | |
--------------------------------------------------------------------------------
| Operating | 9.3 % | 8.8 % | | 8.3 % |
| profit | | | | |
| (EBIT), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring | 0.0 | 0.0 | | 0.0 |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 15.7 | 26.8 | -5.7 | 36.8 |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 9.3 % | 8.8 % | | 8.3 % |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 151.2 | 289.5 | 99.1 | 539.7 |
| employed | | | | |
--------------------------------------------------------------------------------
| Capital | 1.7 | 3.6 | 0.7 | 6.0 |
| expenditure | | | | |
--------------------------------------------------------------------------------
| Personnel at | 5,494 | 4,317 | 55 | 9,866 |
| the end of | | | | |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4-6/2009 | | | | |
--------------------------------------------------------------------------------
| MEUR | Service | Equipment | Unallocated | Total |
| | | | items / | |
| | | | Eliminations | |
--------------------------------------------------------------------------------
| Orders | 126.4 | 202.6 | -19.5 | 309.6 |
| received | | | | |
--------------------------------------------------------------------------------
| Order book | 93.9 | 599.0 | -12.2 | 680.6 |
--------------------------------------------------------------------------------
| Net sales | 169.5 | 293.0 | -30.9 | 431.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 17.2 | 23.2 | -5.1 | 35.3 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.2 % | 7.9 % | | 8.2 % |
--------------------------------------------------------------------------------
| Depreciation | -2.3 | -3.9 | -0.3 | -6.5 |
| and | | | | |
| impairments | | | | |
--------------------------------------------------------------------------------
| Operating | 14.9 | 19.2 | -5.3 | 28.8 |
| profit (EBIT) | | | | |
--------------------------------------------------------------------------------
| Operating | 8.8 % | 6.6 % | | 6.7 % |
| profit | | | | |
| (EBIT), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring | -0.6 | -1.3 | | -1.9 |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 15.5 | 20.5 | -5.3 | 30.7 |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 9.2 % | 7.0 % | | 7.1 % |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 156.4 | 274.9 | 92.9 | 524.1 |
| employed | | | | |
--------------------------------------------------------------------------------
| Capital | 1.2 | 2.4 | 0.1 | 3.7 |
| expenditure | | | | |
--------------------------------------------------------------------------------
| Personnel at | 5,210 | 4,429 | 52 | 9,691 |
| the end of | | | | |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7-9/2009 | | | | |
--------------------------------------------------------------------------------
| MEUR | Service | Equipment | Unallocated | Total |
| | | | items / | |
| | | | Eliminations | |
--------------------------------------------------------------------------------
| Orders | 124.5 | 205.9 | -22.0 | 308.5 |
| received | | | | |
--------------------------------------------------------------------------------
| Order book | 88.1 | 565.6 | -15.3 | 638.4 |
--------------------------------------------------------------------------------
| Net sales | 157.6 | 233.5 | -22.4 | 368.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 16.0 | 5.2 | -3.6 | 17.6 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.1 % | 2.2 % | | 4.8 % |
--------------------------------------------------------------------------------
| Depreciation | -2.6 | -4.5 | -0.3 | -7.4 |
| and | | | | |
| impairments | | | | |
--------------------------------------------------------------------------------
| Operating | 13.4 | 0.7 | -3.9 | 10.2 |
| profit (EBIT) | | | | |
--------------------------------------------------------------------------------
| Operating | 8.5 % | 0.3 % | | 2.8 % |
| profit | | | | |
| (EBIT), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring | -0.5 | -13.4 | | -13.9 |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 13.9 | 14.0 | -3.9 | 24.0 |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 8.8 % | 6.0 % | | 6.5 % |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 143.7 | 264.4 | 59.7 | 467.7 |
| employed | | | | |
--------------------------------------------------------------------------------
| Capital | 2.0 | 2.1 | 0.1 | 4.2 |
| expenditure | | | | |
--------------------------------------------------------------------------------
| Personnel at | 5,033 | 4,334 | 52 | 9,419 |
| the end of | | | | |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 10-12/2009 | | | | |
--------------------------------------------------------------------------------
| MEUR | Service | Equipment | Unallocated | Total |
| | | | items / | |
| | | | Eliminations | |
--------------------------------------------------------------------------------
| Orders | 121.8 | 262.2 | -22.9 | 361.1 |
| received | | | | |
--------------------------------------------------------------------------------
| Order book | 75.9 | 547.8 | -16.8 | 607.0 |
--------------------------------------------------------------------------------
| Net sales | 170.5 | 284.0 | -25.6 | 428.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 17.3 | 20.2 | -3.6 | 34.0 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.2 % | 7.1 % | | 7.9 % |
--------------------------------------------------------------------------------
| Depreciation | -3.1 | -8.4 | -0.3 | -11.8 |
| and | | | | |
| impairments | | | | |
--------------------------------------------------------------------------------
| Operating | 14.3 | 11.8 | -3.9 | 22.2 |
| profit (EBIT) | | | | |
--------------------------------------------------------------------------------
| Operating | 8.4 % | 4.1 % | | 5.2 % |
| profit | | | | |
| (EBIT), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring | -1.5 | -3.6 | | -5.1 |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 15.8 | 15.4 | -3.9 | 27.3 |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 9.3 % | 5.4 % | | 6.4 % |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 130.7 | 208.7 | 133.2 | 472.6 |
| employed | | | | |
--------------------------------------------------------------------------------
| Capital | 2.8 | 8.9 | 0.1 | 11.8 |
| expenditure | | | | |
--------------------------------------------------------------------------------
| Personnel at | 4,991 | 4,742 | 49 | 9,782 |
| the end of | | | | |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1-12/2009 | | | | |
--------------------------------------------------------------------------------
| MEUR | Service | Equipment | Unallocated | Total |
| | | | items / | |
| | | | Eliminations | |
--------------------------------------------------------------------------------
| Orders | 498.4 | 934.6 | -84.1 | 1 348.9 |
| received | | | | |
--------------------------------------------------------------------------------
| Order book | 75.9 | 547.8 | -16.8 | 607.0 |
--------------------------------------------------------------------------------
| Net sales | 667.2 | 1 115.1 | -111.1 | 1 671.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 68.6 | 79.5 | -17.6 | 130.4 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.3 % | 7.1 % | | 7.8 % |
--------------------------------------------------------------------------------
| Depreciation | -10.3 | -21.0 | -1.3 | -32.5 |
| and | | | | |
| impairments | | | | |
--------------------------------------------------------------------------------
| Operating | 58.3 | 58.5 | -18.9 | 97.9 |
| profit (EBIT) | | | | |
--------------------------------------------------------------------------------
| Operating | 8.7 % | 5.2 % | | 5.9 % |
| profit | | | | |
| (EBIT), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring | -2.7 | -18.2 | 0.0 | -20.9 |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 61.0 | 76.7 | -18.9 | 118.8 |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Operating | 9.1 % | 6.9 % | | 7.1 % |
| profit (EBIT) | | | | |
| excluding | | | | |
| restructuring | | | | |
| costs, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 130.7 | 208.7 | 133.2 | 472.6 |
| employed | | | | |
--------------------------------------------------------------------------------
| ROCE, % | 43.8 % | 22.9 % | | 19.3 % |
--------------------------------------------------------------------------------
| Capital | 7.7 | 17.0 | 1.0 | 25.7 |
| expenditure | | | | |
--------------------------------------------------------------------------------
| Personnel at | 4,991 | 4,742 | 49 | 9,782 |
| the end of | | | | |
| period | | | | |
--------------------------------------------------------------------------------
Additional information:
Investors and analysts:
Teo Ottola, CFO, Konecranes Plc
Email: teo.ottola@konecranes.com, or tel. +358 20 427 2040, after 3.00 p.m.
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc
Email: miikka.kinnunen@konecranes.com, or tel. +358 20 427 2050
Press
Mikael Wegmüller, Vice President, Marketing and Communications, Konecranes Plc
Email: mikael.wegmuller@konecranes.com, or tel. +358 20 427 2008
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 and machine tools of all
makes. In 2009, Group sales totaled EUR 1,671 million. The Group has 9,800
employees, at 545 locations in 43 countries. Konecranes is listed on the NASDAQ
OMX Helsinki Ltd (symbol: KCR1V).