KONECRANES PLC: ALL-TIME HIGH ORDER INTAKE, SERVICE PROFITABILITY IMPROVEMENT CONTINUES, EQUIPMENT PROFITABILITY NOT YET SATISFACTORY
KONECRANES PLC INTERIM REPORT April 24, 2013 at 9:00 a.m.
Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
FIRST QUARTER HIGHLIGHTS
- Order intake EUR 582.5 million (534.6), +9.0 percent; Service -0.9 percent and Equipment +13.7 percent.
- Order book EUR 1,084.0 million (1,075.6) at the end of March, 0.8 percent higher than a year ago, 15.0 percent higher than at the end of 2012.
- Sales EUR 495.9 million (474.0), +4.6 percent; Service +1.3 percent and Equipment +7.6 percent.
- Operating profit before restructuring costs EUR 23.1 million (24.0), 4.7 percent of sales (5.1).
- Restructuring costs EUR 4.3 million (0.0).
- Operating profit including restructuring costs EUR 18.8 million (24.0), 3.8 percent of sales (5.1).
- Earnings per share (diluted) EUR 0.19 (0.25).
- Net cash flow from operating activities EUR 32.2 million (12.0).
- Net debt EUR 155.0 million (221.7) and gearing 36.5 percent (56.2).
MARKET OUTLOOK
Demand is expected to be stable or slightly higher among industrial customers. The demand within port customers is expected to be stable. However, due to the timing of large port crane projects, the quarterly Equipment order intake may fluctuate.
FINANCIAL GUIDANCE
Based on the offer base and the near-term demand outlook, the year 2013 sales are expected to be stable or slightly higher than in 2012. We expect the 2013 operating profit to improve from 2012.
| KEY FIGURES | 1-3/2013 | 1-3/2012 | Change % | R12M | 2012 |
| Orders received, MEUR | 582.5 | 534.6 | 9.0 | 2,018.1 | 1,970.1 |
| Order book at end of period, MEUR | 1,084.0 | 1,075.6 | 0.8 | 942.7 | |
| Sales total, MEUR | 495.9 | 474.0 | 4.6 | 2,193.4 | 2,171.5 |
| EBITDA excluding restructuring costs, MEUR | 33.3 | 33.7 | -1.1 | 179.4 | 179.7 |
| EBITDA excluding restructuring costs, % | 6.7% | 7.1% | 8.2% | 8.3% | |
| Operating profit excluding restructuring costs, MEUR | 23.1 | 24.0 | -3.7 | 137.4 | 138.3 |
| Operating margin excluding restructuring costs, % | 4.7% | 5.1% | 6.3% | 6.4% | |
| EBITDA, MEUR | 29.2 | 33.7 | -13.2 | 172.4 | 176.8 |
| EBITDA, % | 5.9% | 7.1% | 7.9% | 8.1% | |
| Operating profit, MEUR | 18.8 | 24.0 | -21.5 | 127.3 | 132.5 |
| Operating margin, % | 3.8% | 5.1% | 5.8% | 6.1% | |
| Profit before taxes, MEUR | 15.5 | 20.5 | -24.2 | 119.3 | 124.2 |
| Net profit for the period, MEUR | 10.9 | 14.4 | -24.2 | 81.3 | 84.8 |
| Earnings per share, basic, EUR | 0.19 | 0.25 | -23.5 | 1.41 | 1.47 |
| Earnings per share, diluted, EUR | 0.19 | 0.25 | -23.4 | 1.41 | 1.46 |
| Gearing, % | 36.5% | 56.2% | 39.3% | ||
| Return on capital employed %, Rolling 12 Months (R12M) | 17.8% | 18.4% | |||
| Free cash flow, MEUR | 21.7 | 0.7 | 3,103.6 | 122.6 | 101.6 |
| Average number of personnel during the period | 12,114 | 11,704 | 3.5 | 11,917 |
President and CEO Pekka Lundmark:
“We are happy to report an all-time high order intake in the first quarter of 2013. The order from the Indonesian port operator Pelindo III, booked in February and worth more than 100 million euro, is also the largest single order in our company’s history. Orders for industrial cranes and components recovered somewhat from the low level in the last quarter of 2012 and also the growth of service contract base accelerated. Overall, a good quarter for our order book.
Positive development in the service business profitability we saw throughout 2012 continued. The new technologies and the broadened scope of services that we are launching have been well received by the customers. As for the equipment business, the quarter suffered from seasonally low delivery volumes. This was further accentuated by product mix, price pressure and the low order intake in the second half of last year affecting the entire first half of 2013. Restructuring measures to lower our cost base in the equipment business are proceeding according to the plan, and they will gradually deliver results.”
DISCLOSURE PROCEDURE
Konecranes follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Konecranes Plc’s January-March 2013 interim report. The complete report is attached to this release in pdf format and is also available on Konecranes’ website at www.konecranes.com.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at KÄMP Kansallissali (address Aleksanterinkatu 44 A, 2. floor) at 11.00 a.m. Finnish time. The Interim Report will be presented by Konecranes’ President and CEO Pekka Lundmark and CFO Teo Ottola.
A live webcast of the conference will begin at 11.00 a.m. at www.konecranes.com. Please see the stock exchange release dated April 4, 2013 for the conference call details.
NEXT REPORT
Konecranes Plc’s January-June 2013 interim report will be published on July 24, 2013.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Pekka Lundmark, President and CEO, tel. +358 20 427 2000
Mr. Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr. Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr. Mikael Wegmüller,
Vice President, Marketing and Communications, 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 2012, Group sales totaled EUR 2,170 million. The Group has 12,100 employees at 626 locations in 48 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
NASDAQ OMX Helsinki
Media
www.konecranes.com