KONECRANES PLC’S INTERIM REPORT JANUARY-MARCH 2014
KONECRANES PLC STOCK EXCHANGE RELEASE April 24, 2014 at 9:00 a.m.
SERVICE CONTINUED TO IMPROVE, EQUIPMENT RESULT LOW ON DELIVERY VOLUMES, GUIDANCE SPECIFIED FOR 2014
Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
FIRST QUARTER HIGHLIGHTS
- Order intake EUR 439.3 million (582.7), -24.6 percent; Service -0.4 percent and Equipment -34.0 percent. Orders up from Q4/2013 but down from the all time high Q1/2013.
- Order book EUR 937.9 million (1,084.0) at the end of March, 13.5 percent lower than a year ago, 5.0 percent higher than at the end of 2013.
- Sales EUR 427.3 million (495.9), -13.8 percent; Service -4.5 percent and Equipment -19.5 percent.
- Operating profit before restructuring costs EUR 15.6 million (23.1), 3.6 percent of sales (4.7).
- Restructuring costs EUR 0.4 million (4.3).
- Operating profit including restructuring costs EUR 15.2 million (18.8), 3.6 percent of sales (3.8).
- Earnings per share (diluted) EUR 0.15 (0.19).
- Net cash flow from operating activities EUR -24.9 million (32.2).
- Net debt EUR 221.5 million (155.0) and gearing 57.0 percent (36.5).
MARKET OUTLOOK
The growth in industrial production and container traffic continues at moderate pace and below the historical averages. The near-term investment outlook within manufacturing and process industries, as well as container handling, remains uncertain. However, there are some positive macroeconomic signs mainly in the developed countries.
NEW FINANCIAL GUIDANCE
Sales in 2014 are expected to be approximately at the same level as in 2013. We expect the 2014 operating profit, excluding restructuring costs, to be approximately at the same level or to improve slightly from 2013.
PREVIOUS FINANCIAL GUIDANCE
The order book at year-end 2013 was below the previous year, which will affect the company’s sales and operating profit in the beginning of the year. Due to the market uncertainty, it is too early to estimate the full-year 2014 sales development. The ongoing restructuring actions and improving project execution are expected to have a positive impact on profitability.
| KEY FIGURES | 1-3/2014 | 1-3/2013 | Change % | R12M | 2013 |
| Orders received, MEUR | 439.3 | 582.7 | -24.6 | 1,777.4 | 1,920.8 |
| Order book at end of period, MEUR | 937.9 | 1,084.0 | -13.5 | 893.5 | |
| Sales total, MEUR | 427.3 | 495.9 | -13.8 | 2,031.0 | 2,099.6 |
| EBITDA excluding restructuring costs, MEUR | 25.1 | 33.3 | -24.7 | 146.4 | 154.6 |
| EBITDA excluding restructuring costs, % | 5.9% | 6.7% | 7.2% | 7.4% | |
| Operating profit excluding restructuring costs, MEUR | 15.6 | 23.1 | -32.5 | 108.0 | 115.5 |
| Operating margin excluding restructuring costs, % | 3.6% | 4.7% | 5.3% | 5.5% | |
| EBITDA, MEUR | 24.7 | 29.2 | -15.6 | 136.0 | 140.5 |
| EBITDA, % | 5.8% | 5.9% | 6.7% | 6.7% | |
| Operating profit, MEUR | 15.2 | 18.8 | -19.4 | 80.9 | 84.5 |
| Operating margin, % | 3.6% | 3.8% | 4.0% | 4.0% | |
| Profit before taxes, MEUR | 12.7 | 15.5 | -18.4 | 72.7 | 75.5 |
| Net profit for the period, MEUR | 8.7 | 10.9 | -20.3 | 47.2 | 49.4 |
| Earnings per share, basic, EUR | 0.15 | 0.19 | -20.9 | 0.81 | 0.85 |
| Earnings per share, diluted, EUR | 0.15 | 0.19 | -20.8 | 0.81 | 0.85 |
| Gearing, % | 57.0% | 36.5% | 42.1% | ||
| Return on capital employed %, Rolling 12 Months (R12M) | 11.4% | 11.6% | |||
| Free cash flow, MEUR | -32.6 | 21.7 | 9.8 | 64.0 | |
| Average number of personnel during the period | 11,872 | 12,114 | -2.0 | 11,987 |
President and CEO Pekka Lundmark:
“I am satisfied with most aspects of our service business in the first quarter of 2014. Costs are well under control, sales margins continue to trend up, and now also new orders and contract base returned to growth, when adjusted for negative currency changes. The new services from our “Industrial Internet” strategy are gradually adding more digital content, making our offering increasingly relevant for the safety and productivity of our customers’ operations. We now have a solid platform for growth in this business.
As expected, our equipment business suffered from low delivery volumes in the quarter. Cost reductions have lowered our break-even point. These measures kept the operating profit positive even with the low volume and the hits as a result of the situation in the Ukraine. Of course, in absolute terms, the result was far from our expectations. I expect the lowered cost level to result in a good leverage, should the slight positive signs on the market turn into higher volumes.
We launched a revolutionary new Rubber Tired Gantry (RTG) crane in the beginning of April. Named “BOXHUNTER”, this crane combines latest technology, radical innovation and an attractive price point. We have high expectations for this product especially in the large numbers of growing mid-sized container terminals in the emerging markets.”
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 2014 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 restaurant Savoy’s Salikabinetti (address Eteläesplanadi 14) 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 7, 2014 for the conference call details.
NEXT REPORT
Konecranes Plc’s January-June 2014 interim report will be published on July 23, 2014.
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 2013, Group sales totaled EUR 2,100 million. The Group has 11,800 employees at 600 locations in 48 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
NASDAQ OMX Helsinki
Media
www.konecranes.com