KONECRANES PLC: OPERATING PROFIT AND CASH FLOW IMPROVED, NEW ORDERS STABLE
KONECRANES PLC INTERIM REPORT October 24, 2012 at 9:00 a.m.
OPERATING PROFIT AND CASH FLOW IMPROVED, NEW ORDERS STABLE
Figures in brackets, unless otherwise stated, refer to the same period in the previous year.
THIRD QUARTER HIGHLIGHTS
- Order intake EUR 458.0 million (458.5), -0.1 percent; Service +15.6 percent and Equipment -4.0 percent.
- Order book EUR 1,085.1 million (1,040.1) at end-September, 4.3 percent higher than a year ago, 3.4 percent lower than at end-June 2012.
- Sales EUR 529.8 million (450.9), +17.5 percent; Service +11.6 percent and Equipment +23.1 percent.
- Operating profit EUR 37.0 million (26.0), 7.0 percent of sales (5.8).
- Earnings per share (diluted) EUR 0.43 (0.31).
- Net cash flow from operating activities EUR 45.0 million (-1.6).
- Net debt EUR 250.5 million (203.3) and gearing 55.9 percent (50.2).
JANUARY-SEPTEMBER HIGHLIGHTS
- Order intake EUR 1,546.3 million (1,422.2), +8.7 percent; Service +8.3 percent and Equipment +9.8 percent.
- Sales EUR 1,565.1 million (1,298.2), +20.6 percent; Service +14.9 percent and Equipment +25.1 percent.
- Operating profit EUR 95.7 million (69.7), 6.1 percent of sales (5.4).
- Earnings per share (diluted) EUR 1.07 (0.70).
- Net cash flow from operating activities EUR 74.3 million (-31.2).
MARKET OUTLOOK
Macroeconomic uncertainties have increased and there are more signs of a weakening global demand due to the continuing crisis within the Eurozone and slower economic growth in some emerging markets. This is taking its toll on new inquiries.
FINANCIAL GUIDANCE
Based on the order book, we forecast year 2012 sales and operating profit to be higher than in 2011.
| KEY FIGURES | Third quarter | January - September | ||||||
| 7-9/2012 | 7-9/2011 | Change % | 1-9/2012 | 1-9/2011 | Change % | R12M | 2011 | |
| Orders received, MEUR | 458.0 | 458.5 | -0.1 | 1,546.3 | 1,422.2 | 8.7 | 2,020.2 | 1,896.1 |
| Order book at end of period, MEUR | 1,085.1 | 1,040.1 | 4.3 | 991.8 | ||||
| Sales total, MEUR | 529.8 | 450.9 | 17.5 | 1,565.1 | 1,298.2 | 20.6 | 2,163.2 | 1,896.4 |
| EBITDA excluding restructuring costs, MEUR | 47.2 | 35.5 | 32.8 | 125.7 | 97.0 | 29.6 | 182.9 | 154.3 |
| EBITDA excluding restructuring costs, % | 8.9 | 7.9 | 8.0 | 7.5 | 8.5 | 8.1 | ||
| Operating profit excluding restructuring costs, MEUR | 37.0 | 26.0 | 42.2 | 95.7 | 69.7 | 37.4 | 143.2 | 117.2 |
| Operating margin excluding restructuring costs, % | 7.0 | 5.8 | 6.1 | 5.4 | 6.6 | 6.2 | ||
| EBITDA, MEUR | 47.2 | 35.5 | 32.8 | 125.7 | 97.0 | 29.6 | 176.8 | 148.1 |
| EBITDA, % | 8.9 | 7.9 | 8.0 | 7.5 | 8.2 | 7.8 | ||
| Operating profit, MEUR | 37.0 | 26.0 | 42.2 | 95.7 | 69.7 | 37.4 | 132.9 | 106.9 |
| Operating margin, % | 7.0 | 5.8 | 6.1 | 5.4 | 6.1 | 5.6 | ||
| Profit before taxes, MEUR | 37.1 | 26.3 | 41.2 | 90.3 | 60.1 | 50.2 | 125.9 | 95.8 |
| Net profit for the period, MEUR | 25.0 | 18.3 | 36.6 | 62.4 | 42.0 | 48.7 | 85.4 | 64.9 |
| Earnings per share, basic, EUR | 0.43 | 0.31 | 41.1 | 1.08 | 0.71 | 51.9 | 1.48 | 1.11 |
| Earnings per share, diluted, EUR | 0.43 | 0.31 | 41.8 | 1.07 | 0.70 | 52.6 | 1.47 | 1.10 |
| Gearing, % | 55.9 | 49.7 | 50.5 | |||||
| Return on capital employed %, Rolling 12 Months (R12M) | 18.5 | 17.1 | ||||||
| Average number of personnel during the period | 11,860 | 10,834 | 9.5 | 10,998 | ||||
President and CEO Pekka Lundmark:
”Although not yet at the goal, we are pleased with our results in third quarter. Service business is improving its performance and achieving the goal of prioritizing profitability over growth this year. Our maintenance contract base has developed well, which is a stabilizing element amid an uncertain economic environment. Equipment business is coping well with the challenging environment where fragmented market, overcapacity in the crane industry in some parts of the world and somewhat softening demand are all putting pressure on the sales margins.
The development in different parts of the world is uneven. Our strongest performer this year has been North America along with certain emerging markets, such as the ASEAN countries. Western Europe, China and India are all experiencing weaker demand. Our funnel of new opportunities is still reasonably good, but the lack of structural reforms to tackle various economic problems in the world may negatively affect our market.“
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 Interim Report January-September 2012. 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 restaurant Savoy´s Salicabinet (address: Eteläesplanadi 14, 7th 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 of October 9, 2012, for the conference call details.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
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 2011, Group sales totaled EUR 1,896 million. The Group has 12,100 employees at 609 locations in 47 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
NASDAQ OMX Helsinki
Media
www.konecranes.com