ORDER GROWTH BOTH IN SERVICE AND EQUIPMENT
KONECRANES PLC INTERIM REPORT October 21, 2010 at 9:30 a.m. Finnish time
ORDER GROWTH BOTH IN SERVICE AND EQUIPMENT
Figures in brackets, unless otherwise stated, refer to the same period in the
previous year.
THIRD QUARTER HIGHLIGHTS
- Order intake EUR 373.4 million (308.5), +21.0 percent: Service +22.4 percent
and Equipment +16.5 percent.
- Order book EUR 679.7 million (638.4) at end-September, 6.5 percent higher than
a year ago, 0.8 percent lower than at end-June 2010.
- Sales EUR 393.6 million (368.7), +6.8 percent: Service +9.9 percent and
Equipment +8.2 percent.
- Operating profit EUR 34.3 million (10.2), 8.7 percent of sales (2.8).
Comparison period included restructuring costs of EUR 13.9 million.
- Earnings per share (diluted) EUR 0.39 (0.08).
- Net cash flow from operating activities EUR 32.1 million (66.2).
- Net debt EUR 0.7 million (-14.9) and gearing 0.2 percent (-3.8).
JANUARY-SEPTEMBER HIGHLIGHTS
- Order intake EUR 1,058.3 million (987.7), +7.1 percent: Service +19.8 percent
and Equipment -2.5 percent.
- Sales EUR 1,076.9 million (1,242.4), -13.3 percent: Service -0.1 percent and
Equipment -20.6 percent.
- Operating profit before restructuring costs EUR 69.2 million (91.6), 6.4
percent (7.4) of sales.
- Restructuring costs EUR 2.7 million (15.8).
- Operating profit, including restructuring costs, EUR 66.6 million (75.8), 6.2
percent of sales (6.1).
- Earnings per share (diluted) EUR 0.80 (0.84).
- Net cash flow from operating activities EUR 26.2 million (133.2).
From this report, Konecranes separates the market outlook describing the
expected demand from financial guidance.
MARKET OUTLOOK
The demand for maintenance services is expected to continue to be above last
year's level due to higher capacity utilization within customer industries. The
demand for new equipment is expected to remain robust in Asia-Pacific and in
emerging markets in general while customers' decision-making is still
conditional on the sustainability of economic growth in western Europe and North
America. Price competition is likely to remain.
FINANCIAL GUIDANCE
Konecranes reiterates the previous guidance for the year 2010 for sales and
operating profit:
Growing demand will support our sales and profitability already during the
second half of 2010. However, due to the low first half year sales we expect
full year 2010 sales to be lower than in 2009. We expect the operating profit in
2010 to be lower than in 2009 before restructuring costs.
--------------------------------------------------------------------------------
| KEY | Third quarter | | January | | |
| FIGURES | | | -September | | |
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | Change | 1-9/ | 1-9/ | R12M | 2009 |
| | 2010 | 2009 | % | 2010 | 2009 | | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Orders | 373,4 | 308.5 | 21.0 |1,058.3 | 987.7 | 1,419.5 | 1,348.9 |
| received, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Order book | 679.7 | 638.4 | 6.5 |679.7 | 638.4 | | 607.0 |
| at end of | | | | |
| period, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Sales | 393.6 | 368.7 | 6.8 | 1,076.9 | 1,242.4 | 1,505.8 | 1,671.3 |
| total, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 34.3 | 24.0 | 42.5 | 69.2 | 91.6 | 96.5 | 118.8 |
| profit | | | | | | | |
| excluding | | | | | | | |
| re- | | | | | | | |
| strucr | | | | | | | |
| ing costs, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 8.7 % | 6.5 % | | 6.4 % | 7.4 % | 6.4 % | 7.1 % |
| margin | | | | | | | |
| excluding | | | | | | | |
| re-structu | | | | | | | |
| ring | | | | | | | |
| costs, % | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 34.3 | 10.2 | 236.8 | 66.6 | 75.8 | 88.7 | 97.9 |
| profit | | | | | | | |
| including | | | | | | | |
| re-structu | | | | | | | |
| ring | | | | | | | |
| costs, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 8.7 % | 2.8 % | | 6.2 % | 6.1 % | 5.9 % | 5.9 % |
| margin | | | | | | | |
| including | | | | | | | |
| re-structu | | | | | | | |
| ring | | | | | | | |
| costs, % | | | | | | | |
--------------------------------------------------------------------------------
| Profit | 32.7 | 7.2 | 354.8 | 65.9 | 70.0 | 84.5 | 88.6 |
| before | | | | | | | |
| taxes, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 23.0 | 4.2 | 442.8 | 46.3 | 49.1 | 59.6 | 62.5 |
| for the | | | | | | | |
| period, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | 0.39 | 0.08 | 389.9 | 0.80 | 0.85 | 1.03 | 1.08 |
| per share, | | | | | | | |
| basic. EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | 0.39 | 0.08 | 388.6 | 0.80 | 0.84 | 1.03 | 1.08 |
| per share, | | | | | | | |
| diluted, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Gearing, % | | | | 0.2 % | -3.8 % | | -19.1 % |
--------------------------------------------------------------------------------
| Return on | | | | | | 18.8 % | 19.3 % |
| capital | | | | | | | |
| employed | | | | | | | |
| %, Rolling | | | | | | | |
| 12 Months | | | | | | | |
| (R12M) | | | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | | |
| number of | | | | 9,677 | 9,720 | | 9,811 |
| personnel | | | | | | | |
| during the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
President and CEO Pekka Lundmark:
“We are pleased with most aspects of our third quarter. The market situation is
slowly improving, which is visible both in the number of enquiries and orders
received. Most of the signs we are receiving from our customers are encouraging,
but the current situation still calls for cautiousness. Even though the recovery
in delivery volumes is modest at best, we can be reasonably satisfied with our
profit development. Despite being still slightly below our 10 percent EBIT
margin target in the reporting quarter, we are on the right track. Particularly
important is that we have been able to defend our sales margins in this
fragmented industry, where there is still a lot of overcapacity. Where price
erosion has occurred we have mitigated it by lower costs.
Our main strategy is to grow organically. We are increasing our R&D investments
to widen our offering. We are systematically entering new markets. In
acquisitions our first priority are bolt-on acquisitions to either widen our
service business presence, or to further improve our equipment business position
especially in emerging markets. Sanma in China and WMI in India are concrete
examples of the latter. We remain convinced that a consolidation of our industry
is necessary to create companies with a critical mass much needed in a
globalized economy.
On September 8, 2010, we approached Demag Cranes AG with a non-binding proposal
to discuss possibilities for a business combination. In our view such a
combination would have a compelling industrial logic. Our approach was genuinely
friendly. However, the fact that we have not succeeded in entering into
discussions with Demag and the steep increase in Demag's share price since our
approach have reduced the likelihood of a potential combination.”
KONECRANES INTERIM REPORT JANUARY - SEPTEMBER 2010
CHANGES IN REPORTING METHOD
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. External segment reporting was also changed to match with the
operational structure of the group. From 2010, Konecranes reports on two
segments, Service and Equipment. While the number of segments was reduced from
three to two, Konecranes discloses 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 are allocated to the business areas. The
reporting of centralized legal, marketing & communications, finance, HR and
general management costs remains unchanged and these will continue to be shown
as unallocated group costs. Additionally, the reporting of elimination of
internal margins (consolidation items) in inventories has changed as a result of
fewer segments and internal margins within the business areas being incorporated
in the operating profit of the respective business area.
Konecranes published the 2009 comparison figures related to the segment
reporting change in a stock exchange release on February 24, 2010.
In addition, unrealized exchange rate differences relating to the hedging of
trade receivables and payables that are not included in IFRS hedge accounting
have been reported as part of net sales and cost of goods sold above the
operating profit from 2010. Previously these items were reported in financial
income and expenses. It is not possible to recalculate accurately the impact of
this change on 2009 numbers as a result of which restating of the 2009 numbers
has not been done for this change. However, it is estimated that the change
would only have a minor impact on the segment operating profits in 2009. There
would not be any change in profit before taxes in 2009.
MARKET REVIEW
The turnaround in the global economy that started in the autumn of 2009
continued in the first nine months of 2010. Further fuelled by easy monetary
policies and low interest rates, global macro indicators improved on a broad
basis and in many cases even exceeded expectations. Growth rates in the emerging
markets continued to exceed those in the developed countries.
The third quarter economic news flow was dominated by double-dip fears, mainly
related to the USA where the construction sector has remained subdued and the
unemployment rate high. In Europe, several countries accelerated austerity
measures to reduce their budget deficits. In China, economic momentum indicators
picked-up after the slower second quarter.
Industrial capacity utilization improved both in Europe and the USA in the first
nine months, but was still low by historical standards. In the third quarter, it
stood barely above the previous trough of late 2001. Purchasing managers'
indexes were buoyant across the globe, but started to clearly point to a
moderation in the third quarter.
Demand for new equipment continued to suffer from overcapacity across customer
segments overall. Demand for heavy industrial cranes was affected by the lack of
major industrial investments in process industries while the demand for lighter
industrial cranes and components was supported by livelier activity in general
manufacturing. After a quiet start into the year, the increase in shipping
volumes resulted in higher project activity with container ports towards the end
of the reporting period. New inquiries from energy, steel, paper & pulp and
mining sectors increased as well. Intense price competition persisted due to the
overcapacity in the crane manufacturing industry.
Demand for services relating to lifting equipment improved due to higher
capacity utilization within customer industries. Customers have continued to
show a growing interest to outsource maintenance.
The market prices for steel and sea freight increased in the first half, but
leveled off in the third quarter. Copper prices have been volatile at a high
level in 2010. The US dollar appreciated clearly against EUR during the first
half, but this development was reversed in the third quarter.
Note: Unless otherwise stated, the figures in brackets in the sections below
refer to the same period in the previous year.
ORDERS RECEIVED
January-September orders received totaled EUR 1,058.3 million (987.7),
representing an increase of 7.1 percent compared with a year before. Orders
received rose in Service by 19.8 percent, but declined in Equipment by 2.5
percent. Orders received rose in Americas and Asia-Pacific, but decreased in
Europe-Middle East-Africa due to lower Equipment orders in the region.
In January-September, orders from emerging markets accounted for approximately
35 percent of total orders compared with more than 30 percent in 2009.
Acquisitions contributed about 4 percent to orders received in
January-September.
Third-quarter order intake rose by 21.0 percent from a year ago and totaled EUR
373.4 million (308.5). Order intake increased in Service by 22.4 and in
Equipment by 16.5 percent. Orders received rose in all geographic areas. Order
growth was strongest in Asia-Pacific.
ORDER BOOK
The value of the order book at end September totaled EUR 679.7 million. The
order book increased by 6.5 percent from last year's comparison figure of EUR
638.4 million, but declined by 0.8 percent from end-June 2010 when it stood at
EUR 685.2 million. Compared to a year ago, the order book increased mainly due
to currency changes. Service accounted for EUR 111.7 million (16 percent) and
Equipment for EUR 585.6 million (84 percent) of the total end-September order
book.
SALES
Group sales in January-September decreased by 13.3 percent from the level a year
ago and totaled EUR 1,076.9 million (1,242.4). Sales declined in Service by 0.1
percent and in Equipment by 20.6 percent. Acquisitions contributed about 3
percent to sales in January-September.
Third-quarter sales rose by 6.8 percent from a year ago and totaled EUR 393.6
million (368.7). Sales increased in Service by 9.9 percent and in Equipment by
8.2 percent.
At end September, calculated on a rolling 12 months basis, the regional
breakdown was as follows: EMEA 54 (56), Americas 30 (29) and APAC 17 (15)
percent.
--------------------------------------------------------------------------------
| Net sales by region, MEUR |
| |
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | Change % | R12M | 2009 |
| | 2010 | 2009 | 2010 | 2009 | percent| at | | |
| | | | | | | compara | | |
| | | | | | | ble | | |
| | | | | | | currency | | |
| | | | | | | rates | | |
--------------------------------------------------------------------------------
| EMEA | 202.0| 201.0| 565.0 | 683.8 | -17.4 | -19.2 | 809.1 | 928.0 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| AME | 122.0| 111.9| 332.4 | 365.9 | -9.2 | -13.8 | 446.1 | 479.5 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| APAC | 69.5 | 55.7 | 179.5 | 192.7 | -6.8 | -14.1 | 250.6 | 263.8 |
--------------------------------------------------------------------------------
| Total | 393.6| 368.7| 1,076.9| 1,242.4| -13.3 | -16.8 | 1,505.8| 1,671.3 |
| | | | | | | | | |
--------------------------------------------------------------------------------
CURRENCY RATE EFFECT
In a year-on-year comparison, the currency rates had a positive effect on orders
and sales in January-September. The reported order intake rose by 7.1 percent
and by 3.1 percent at comparable currency rates. Reported sales declined by 13.3
percent and by 16.8 percent at comparable currency rates. In the third quarter,
the reported order intake grew by 21.0 percent whereas the growth at comparable
currencies was 13.1 percent. The reported sales increased by 6.8 percent, but
fell by 1.3 percent at comparable currencies.
In Service, the reported January-September order intake growth of 19.8 percent
exceeded the growth of 14.0 percent at comparable currencies. In Equipment,
reported orders fell by 2.5 percent and by 5.5 percent at comparable currencies.
In the third quarter, Service orders grew by 22.4 in reported terms and by 12.7
percent at comparable currencies. In Equipment, the corresponding figures were
16.5 percent and 10.0 percent.
In January-September the currency rates had a slight positive impact on the
Group's operating margin compared with the same period a year earlier.
FINANCIAL RESULT
The consolidated operating profit in January-September totaled EUR 66.6 million
(75.8), decreasing in total by EUR 9.2 million. The operating profit includes
restructuring costs of EUR 2.7 million (15.8) booked in the second quarter due
to the announced closure of the assembly plant in Windsor, WI, USA. The
consolidated operating margin rose to 6.2 percent (6.1). The operating margin in
Service declined to 8.1 percent (8.9), but stayed flat in Equipment at 5.6
percent (5.6).
The consolidated operating profit in the third quarter totaled EUR 34.3 million
(10.2). The comparison period included restructuring costs of EUR 13.9 million.
The consolidated operating margin in the third quarter rose to 8.7 percent
(2.8). The operating margin in Service decreased to 8.4 percent (8.5), but rose
in Equipment to 8.7 percent (0.3).
Procurement cost savings and adjustment of production capacity offset the
product price pressure both in January-September and in the third quarter.
In January-September, the share of the result of associated companies and joint
ventures was EUR 1.3 million (-2.1).
Net financial expenses totaled EUR 2.0 million (3.7). Net interest expenses were
EUR 2.3 million (2.0).
The January-September profit before taxes was EUR 65.9 million (70.0).
Income taxes in January-September were EUR -19.6 million (-20.9). The Group's
estimated effective tax rate was 29.8 percent (29.8).
Net profit for January-September was EUR 46.3 million (49.1).
Diluted earnings per share for January-September were EUR 0.80 (0.84).
On a rolling twelve-month basis, return on capital employed was 18.8 percent
(32.7) and return on equity 14.8 percent (26.7).
Balance Sheet
The consolidated balance sheet, which at end September stood at EUR 1,140.7
million, was EUR 92.4 million more than at September 30, 2009, but EUR 4.8
million less than at June 30, 2010. Total equity at the end of the report period
was EUR 415.7 million (389.1). Total equity attributable to equity holders of
the parent company at September 30 was EUR 410.9 million (387.1) or EUR 6.97 per
share (6.59).
Net working capital amounted to EUR 183.3 million at end-September, representing
a decrease of EUR 27.8 million from a year ago and EUR 9.7 million from June 30,
2010. Net working capital fell in the third quarter mainly due to currency
changes.
Cash Flow and Financing
Net cash from operating activities in January-September was EUR 26.2 million
(133.2), representing EUR 0.44 per diluted share (2.25). Net cash from
operations in the third quarter was EUR 32.1 million (66.2). Cash flow before
financing activities was EUR -28.6 million (110.3). Cash flow before financing
activities in the third quarter was EUR 21.2 million (57.0).
Advance payments related to investments in tangible and intangible assets
amounted to EUR 8.5 million (4.0) in January-September and to EUR 4.9 million
(1.8) in the third quarter.
Interest-bearing net debt was EUR 0.7 million (-14.9) at September 30, 2010.
Solidity was 42.9 percent (43.7) and gearing 0.2 percent (-3.8).
The Group's liquidity remained healthy. At the end of the third quarter, cash
and cash equivalents amounted to EUR 103.3 million (88.5). None of the Group's
EUR 200 million committed back-up financing facility was in use at the end of
the period.
CAPITAL EXPENDITURE
January-September capital expenditure excluding acquisitions and investments in
associated companies amounted to EUR 11.3 million (13.9). This amount consisted
mainly of replacement or capacity expansion investments in machines, equipment
and information technology. Capital expenditure including acquisitions and
investments in associated companies was EUR 46.5 million (25.1).
ACQUISITIONS
Capital expenditure on acquisitions and investments in associated companies was
EUR 35.1 million (11.2). During January-September, Konecranes made six small
acquisitions, five of which related to the Machine Tool Service (MTS) business
in Denmark, in the UK and in the USA. From the acquisitions net assets were
recorded at EUR 5.9 million and they increased goodwill by EUR 2.2 million.
Konecranes and the Japanese hoist, crane and material handling equipment company
Kito Corporation (“Kito”) entered into a strategic alliance. The alliance
agreement was signed by representatives of the two companies on March 23, 2010.
To fully utilize the global market potential and mutually complement each other,
Konecranes will enter into an agreement to sell Kito manual products while Kito
will sell wire rope hoists made by Konecranes. The distribution and license
agreements are expected to be concluded in the near future. The benefits of the
alliance are not expected to have a material impact on Konecranes' net sales and
operating profit in 2010.
To reinforce the strategic alliance, Konecranes purchased 29,750 shares (22.0
percent of the share capital and voting rights) in Kito on March 24, 2010. The
total value of the stake purchased amounted to approximately JPY 3.3 billion
(EUR 27 million). Furthermore, Kito repurchased 10.0 percent of the share
capital on March 24, 2010. Post the share purchase by Konecranes and the Kito
share buyback, Konecranes has approximately 24.4 percent of the voting rights in
Kito.
The shareholding has been included in investments accounted for using the equity
method in the balance sheet on March 31. Kito has been included in Konecranes'
statement of income as an associated company during the third quarter.
As part of the strategic alliance announced March 23, 2010, Konecranes and Kito
signed a Memorandum of Understanding according to which Konecranes intends to
sell the hoist distribution business of its Japanese joint venture MHS
Konecranes to Kito. As a preparation for this transaction, Konecranes on June 4,
2010, finalized the agreement to increase its ownership in MHS Konecranes to 100
percent by acquiring the remaining 35 percent stake from Meidensha Corporation.
Following the Memorandum of Understanding, MHS Konecranes and Kito have on
October 20, 2010, entered into an agreement concerning the business transfer
through asset purchase. The transfer of the assets is expected to be finalized
on November 1, 2010.
PERSONNEL
In January-September, the Group employed an average of 9,677 people (9,720). At
30 September, the headcount was 9,795 (9,419). At end September, the number of
personnel by Business Area was as follows: Service 5,125 employees (5,033),
Equipment 4,626 employees (4,334) and Group staff 44 (52). The Group had 5,562
employees (5,646) working in EMEA, 2,217 (2,298) in the Americas and 2,016
(1,475) in the APAC region.
Konecranes announced on June 3, 2010, that it will close its assembly plant in
Windsor, WI, USA by the end of October 2010. Low equipment demand in the
developed markets, closer integration of Morris Material Handing Inc's (P&H)
activities into Konecranes' operations and widening usage of corporate-wide
products have reduced production volumes at the Windsor plant in 2010. A plan
was prepared to cease operations at the Windsor factory and to relocate the
remaining activities to the other Konecranes locations in the USA. Of the 47
personnel in Windsor, 27 were transferred to positions in other locations and 20
positions were eliminated.
BUSINESS AREAS
--------------------------------------------------------------------------------
| Service |
| |
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | R12M | 2009 |
| | 2010 | 2009 | 2010 | 2009 | percent | | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Orders | 152.4 | 124.5 | 451.3 | 376.5 | 19.8 | 573.1 | 498.4 |
| received, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Order book, | 111.7 | 88.1 | 111.7 | 88.1 | 26.8 | | 75.9 |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Contract | 146.6 | 122.6 | 146.6 | 122.6 | 19.5 | | 121.3 |
| base value, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 173.2 | 157.6 | 496.5 | 496.8 | -0.1 | 666.9 | 667.2 |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, | 17.4 | 16.0 | 48.5 | 51.2 | -5.4 | 65.8 | 68.6 |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, % | 10.0 % | 10.1 | 9.8 % | 10.3 % | | 9.9 % | 10.3 % |
| | | % | | | | | |
--------------------------------------------------------------------------------
| Depreciatio | -2.8 | -2.6 | -8.1 | -7.2 | 12.0 | -11.2 | -10.3 |
| n and | | | | | | | |
| amortizatio | | | | | | | |
| n, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 14.6 | 13.9 | 40.4 | 45.2 | -10.6 | 56.2 | 61.0 |
| profit | | | | | | | |
| (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuri | | | | | | | |
| ng costs, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 8.4 % | 8.8 % | 8.1 % | 9.1 % | | 8.4 % | 9.1 % |
| profit | | | | | | | |
| (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuri | | | | | | | |
| ng costs, % | | | | | | | |
--------------------------------------------------------------------------------
| Restructrur | 0.0 | -0.5 | 0.0 | -1.2 | | -1.5 | -2.7 |
| ing costs, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 14.6 | 13.4 | 40.4 | 44.0 | -8.2 | 54.7 | 58.3 |
| profit | | | | | | | |
| (EBIT), | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 8.4 % | 8.5 % | 8.1 % | 8.9 % | | 8.2 % | 8.7 % |
| profit | | | | | | | |
| (EBIT), % | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 152.7 | 143.7 | 152.7 | 143.7 | 6.3 | | 130.7 |
| employed, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| ROCE% | | | | | | 36.9 % | 43.8 % |
--------------------------------------------------------------------------------
| Capital | 1.7 | 2.0 | 5.8 | 4.9 | 18.1 | 8.6 | 7.7 |
| expenditure | | | | | | | |
| , MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Personnel | 5,125 | 5,033 | 5,125 | 5,033 | 1.8 | | 4,991 |
| at the end | | | | | | | |
| of period | | | | | | | |
--------------------------------------------------------------------------------
January-September orders received totaled EUR 451.3 million (376.5), showing an
increase of 19.8 percent. Demand for maintenance services grew in all regions.
Order intake increased in all business units with particular strength in
Modernization. Also, demand for spare parts was strong. The order book increased
by 26.8 percent to EUR 111.7 million (88.1) from a year before and by 4.9
percent from end-June 2010. Sales decreased by 0.1 percent to EUR 496.5 million
(496.8). Operating profit was EUR 40.4 million (44.0) and the operating margin
8.1 percent (8.9). The January-September 2009 operating profit included EUR 1.2
million restructuring costs.
The third quarter order intake increased by 22.4 percent and totaled EUR 152.4
million (124.5). Similar to the first nine months, orders were higher than a
year ago in all regions and business units as a result of higher capacity
utilization among customer industries. Third quarter sales totaled EUR 173.2
million (157.6) and were 9.9 percent higher than a year ago. Operating profit
was EUR 14.6 million (13.4) and the operating margin 8.4 percent (8.5). The
third quarter operating profit was burdened by one-time costs of EUR 1.5 million
related to the streamlining of the operations. The third-quarter 2009 operating
profit included EUR 0.5 million restructuring costs.
The annual value of the contract base amounted to EUR 146.6 million compared
with 122.6 MEUR a year ago and 145.7 MEUR at end June. Compared to a year ago,
majority of the increase in the value of the contract base was organic while the
rest was attributable to currency changes. The total number of items of
equipment included in the maintenance contract base increased to 376,523 at end
September from 370,549 a year before and from 371,387 at end-June, 2010.
The number of service technicians at end-September was 3,286, which is 51 or 1.6
percent more than at the end of September 2009.
--------------------------------------------------------------------------------
| Equipment |
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | R12M | 2009 |
| | 2010 | 2009 | 2010 | 2009 | percent | | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Orders | 240.0 | 205.9 | 655.7 | 672.5 | -2.5 | 917.9 | 934.6 |
| received, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Order book, | 585.6 | 565.6 | 585.6 | 565.6 | 3.5 | | 547.8 |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 252.6 | 233.5 | 660.1 | 831.1 | -20.6 | 944.1 | 1,115.1 |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, MEUR | 27.0 | 5.2 | 52.0 | 59.2 | -12.3 | 72.2 | 79.5 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.7 | 2.2 % | 7.9 % | 7.1 % | | 7.6 % | 7.1 % |
| | % | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -4.9 | -4.5 | -14.7 | -12.5 | 17.3 | -23.1 | -21.0 |
| and | | | | | | | |
| amortization, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 22.0 | 14.0 | 39.9 | 61.4 | -34.9 | 55.3 | 76.7 |
| profit (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | | |
| costs, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 8.7 % | 6.0 % | 6.1 % | 7.4 % | | 5.9 % | 6.9 % |
| profit (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | | |
| costs, % | | | | | | | |
--------------------------------------------------------------------------------
| Restructuring | 0.0 | -13.4 | -2.7 | -14.6 | | -6.3 | -18.2 |
| costs, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 22.0 | 0.7 | 37.3 | 46.7 | -20.2 | 49.1 | 58.5 |
| profit | | | | | | | |
| (EBIT), MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 8.7 % | 0.3 % | 5.6 % | 5.6 % | | 5.2 % | 5.2 % |
| profit | | | | | | | |
| (EBIT), % | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 223.7 | 264.4 | 223.7 | 264.4 | -15.4 | | 208.7 |
| employed, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| ROCE% | | | | | | 20.1 % | 22.9 % |
--------------------------------------------------------------------------------
| Capital | 0.4 | 2.1 | 5.5 | 8.1 | -31.9 | 14.4 | 17.0 |
| expenditure, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at | 4,626 | 4,334 | 4,626 | 4,334 | 6.7 | | 4,742 |
| the end of | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
January-September orders received totaled EUR 655.7 million (672.5), showing a
decrease of 2.5 percent. Order intake rose in APAC, but fell in EMEA and the
Americas. Orders for Industrial Cranes accounted for approximately a half of the
orders received and were at last year's level. Components generated
approximately 30 percent of the new orders and were above last year's level. The
combined orders for the other business units (Nuclear Cranes, Port Cranes and
Lift Trucks) amounted to approximately 20 percent of the orders received and
were lower compared to the comparison period due to the lack of large single
orders in Port Cranes, which boosted last year's figure.
The order book increased by 3.5 percent from a year before, but decreased by 2.1
percent from the end-June 2010 to EUR 585.6 million (565.6). Sales decreased by
20.6 percent to EUR 660.1 million (831.1). Operating profit before restructuring
costs of EUR 2.7 million (14.6) was EUR 39.9 million (61.4) and the operating
margin 6.1 percent (7.4). Operating profit after restructuring costs was EUR
37.3 million (46.7) and 5.6 percent of sales (5.6).
The third quarter order intake rose by 16.5 percent and totaled EUR 240.0
million (205.9). Third quarter order intake rose in EMEA and APAC, but fell in
the Americas due to the lack of port crane orders. The value of new orders in
Equipment was higher than a year ago in all business units except Port Cranes.
Similar to the first half, demand for Lift Trucks was particularly strong in the
third quarter. Third-quarter sales totaled EUR 252.6 million (233.5) and were
8.2 percent more than a year ago. Third-quarter operating profit was EUR 22.0
million (0.7), and the operating margin 8.7 percent (0.3). The operating profit
increased due to higher volume, achieved cost savings, favourable sales mix and
positive currency effects. The third-quarter 2009 operating profit included EUR
13.4 million restructuring costs.
Group Overheads
Unallocated Group overhead costs and eliminations in the reporting period were
EUR -11.1 million (-15.0), representing 1.0 percent of sales (1.2).
ADMINISTRATION
Konecranes Annual General Meeting was held March 25, 2010. The meeting approved
the company's annual accounts for the fiscal year 2009 and discharged the
members of the Board of Directors and Managing Director from liability.
Payment of dividend
The AGM approved the Board's proposal that a dividend of EUR 0.90 per share is
paid from the distributable assets of the parent company. The dividend was paid
on 59,426,320 shares and amounted to EUR 53,483,688. The dividend was paid on
April 9, 2010.
Composition of the Board of Directors
The AGM approved the proposal of the Nomination and Compensation Committee that
eight (8) members of the Board of Directors be elected. The Board members
elected at the AGM in 2009 i.e. Mr Svante Adde, Mr Tomas Billing, Mr Kim Gran,
Mr Stig Gustavson, Mr Tapani Järvinen, Mr Matti Kavetvuo, Ms Malin Persson and
Mr Mikael Silvennoinen were re-elected.
Compensation of the Board of Directors
The AGM confirmed the annual compensation to the Board members:
Chairman of the Board: EUR 100,000
Vice Chairman of the Board: EUR 64,000
Other Board Members: EUR 40,000
In addition, compensation of EUR 1,500 per meeting will be paid for attendance
at Board Committee meetings.
Election of the auditors and their remuneration
The AGM confirmed that Ernst & Young Oy continues as the Company's external
auditor. The remuneration of the auditor will be paid according to the auditor's
reasonable invoice.
Amendment of the Articles of Association
The AGM decided to amend Section 9 of the Articles of Association so that notice
to the General Meeting shall be delivered no less than three weeks before the
General Meeting, however no less than 9 days prior to the record date of the
General Meeting. The AGM also approved that the notice, by decision by the Board
of Directors, can be delivered by publishing the notice on the Company's website
or in national newspapers, or by sending written notices to the shareholders by
mail. Furthermore, the AGM confirmed that the General Meeting may, in addition
to the Company's domicile, be held in Helsinki, Espoo or Vantaa.
Authorization of the Board of Directors to decide on the issuance of shares as
well as on the issuance of special rights entitling to shares
The amount of shares to be issued based on this authorization shall not exceed
9,000,000 shares, which corresponds to approximately 14.5 percent of all of the
shares in the Company.
The authorization is effective until the end of the next Annual General Meeting,
however no longer than until 24 September 2011.
Authorization of the Board of Directors to repurchase the Company's own shares
The amount of own shares to be repurchased and/or accepted as pledge shall not
exceed 6,000,000 shares in total, which corresponds to approximately 9.7 percent
of all of the shares in the Company.
The authorization is effective until the end of the next Annual General Meeting,
however no longer than until 24 September 2011.
Authorization of the Board of Directors to decide on the transfer of the
Company's own shares
The authorization is limited to a maximum of 6,000,000 shares, which corresponds
to approximately 9.7 percent of all of the shares in the Company.
This authorization shall be effective until the next Annual General Meeting of
Shareholders, however no longer than until 24 September 2011.
Donation for philanthropic purposes
The AGM decided to grant a donation to one or more Finnish Universities in the
amount of EUR 1,250,000 to thereby support education and research within the
fields of technology, economy, or art. Equity reduced by EUR 0.9 million due to
the paid donation in the third quarter.
Board of Directors' organizing meeting
In its first meeting held after the Annual General Meeting, the Board of
Directors elected Mr Stig Gustavson to continue as Chairman. Mr Svante Adde was
elected Chairman of the Audit Committee, and Mr Kim Gran, Mr Tapani Järvinen and
Mr Mikael Silvennoinen as Committee members. Mr Matti Kavetvuo was elected
Chairman of the Nomination and Compensation Committee, and Mr Tomas Billing, Mr
Stig Gustavson, and Ms Malin Persson were elected as Committee members.
With the exception of Mr Stig Gustavson, the Board members are deemed to be
independent of the company under the Finnish Corporate Governance Code. All
Board members are independent of significant shareholders of the company.
SHARE CAPITAL AND SHARES
The company's registered share capital at September 30, 2010 totaled EUR 30.1
million. At September 30, 2010, the number of shares including treasury shares
and the shares owned by KCR Management Oy totaled 62,002,120. At September 30,
2010, Konecranes held a total of 2,524,760 treasury shares, excluding the shares
owned by KCR Management Oy, which corresponds to 4.1 percent of the total number
of shares and which at that date had a market value of EUR 69.3 million.
Konecranes conveyed 12,000 own shares on April 29, 2010 as sale against
contribution in kind. In addition, Konecranes conveyed 5,840 own shares on
August 26, 2010 as the payment of Board remuneration in accordance with the
resolution of the Annual General Meeting held on March 25, 2010.
SHARES REGISTERED UNDER STOCK OPTION RIGHTS
Pursuant to Konecranes' stock option plans, 129,200 new shares were subscribed
and registered in the Finnish Trade Register in January-September. As a result
of these subscriptions, the total number of Konecranes shares (including
treasury shares and the shares owned by KCR Management Oy) rose to 62,002,120.
The subscription period for the options under Konecranes 2001B stock option plan
ended on March 31, 2010. The last lot of the shares subscribed under the 2001B
stock option plan was registered in the Finnish Trade Register on May 5, 2010.
The stock options issued under Konecranes Plc's ongoing stock option plans (2007
and 2009) at end-September 2010 entitle holders to subscribe a total of
3,370,000 shares, which would increase the total number of Konecranes shares
(including treasury shares and the shares owned by KCR Management Oy) to
65,372,120. The option programs include approximately 210 key persons.
All shares carry one vote per share and equal rights to dividends.
The terms and conditions of the stock option programs are available on
Konecranes' website at www.konecranes.com.
MARKET CAPITALIZATION AND TRADING VOLUME
The closing price for Konecranes Plc's shares on September 30, 2010 was EUR
27.43. The volume-weighted average share price in January-September was EUR
22.55, the highest price being EUR 27.60 in September and the lowest EUR 19.08
in January. In January-September, the trading volume on the NASDAQ OMX Helsinki
totaled 71.8 million Konecranes Plc shares, corresponding to a turnover of
approximately EUR 1,619 million. The average daily trading volume was 379,831
shares, representing an average daily turnover of EUR 8.6 million.
On September 30, 2010, the total market capitalization of Konecranes Plc's
shares was EUR 1,701 million including treasury shares held by the company and
the shares held by KCR Management Oy. The market capitalization was EUR 1,617
million excluding the treasury shares and the shares held by KCR Management Oy.
FLAGGING NOTIFICATIONS
On February 24, 2010, HTT 2 Holding Oy Ab informed Konecranes that their holding
had exceeded 5 percent. HTT 2 Holding Oy Ab held 3,129,500 shares, which was
5.06 percent of Konecranes' shares and votes on February 24, 2010.
On April 9, 2010, BlackRock, Inc. informed Konecranes that their holding had
exceeded 10 percent. BlackRock, Inc. held 6,228,000 shares, which was 10.05
percent of Konecranes' shares and votes on April 9, 2010.
On June 4, 2010, BlackRock, Inc. informed Konecranes that their holding had
decreased below 10 percent. BlackRock, Inc. held 6,181,787 shares, which was
9.97 percent of Konecranes' shares and votes on June 4, 2010.
On June 23, 2010, Konecranes received a disclosure according to which the
combined holding of HTT 2 Holding Oy Ab, K. Hartwall Invest Oy Ab,
Fyrklöver-Invest Oy Ab and Rönnäs Invest AG had exceeded 10 percent. The
combined ownership of the shareholders mentioned in the disclosure amounted to
6,207,968 shares on June 23, 2010, which is 10.01 percent of the shares and
votes in Konecranes Plc. All the shareholders mentioned in the disclosure will
in practice cooperate in matters concerning their ownership in Konecranes. HTT 2
Holding Oy Ab is a subsidiary of Hartwall Capital Oy Ab.
On July 2, 2010, HTT 2 Holding Oy Ab informed Konecranes that their holding had
exceeded 10 percent. HTT 2 Holding Oy Ab held 6,215,568 shares, which was 10.02
percent of Konecranes' shares and votes on July 2, 2010. K. Hartwall Invest Oy
Ab, Fyrklöver-Invest Oy Ab and Rönnäs Invest AG, who will in practice cooperate
with HTT 2 Holding Oy Ab in matters concerning their ownership in Konecranes
Plc, held 6,357,968 shares on July 2, 2010, which is 10.25 percent of the shares
and votes in Konecranes Plc.
On August 20, 2010, BlackRock, Inc. informed Konecranes that their holding had
exceeded 10 percent. BlackRock held 6,200,223 Konecranes' shares on August 19,
2010, which is 10.00 percent of Konecranes' shares and votes.
On August 30, 2010, Konecranes received a disclosure according to which the
holding of BlackRock, Inc. in Konecranes had decreased below 10 percent.
BlackRock, Inc. held 6,192,571 Konecranes' shares on August 24, 2010, which is
9.99 percent of Konecranes' shares and votes.
On September 8, 2010, BlackRock, Inc. informed Konecranes that their holding had
exceeded 10 percent. BlackRock held 6,271,713 Konecranes' shares on September 7,
2010, which is 10.12 percent of Konecranes' shares and votes.
EVENTS AFTER THE END OF THE REPORTING PERIOD
On October 8, 2010, Konecranes published the following stock exchange release:
“Following recent press speculation and Demag Cranes AG's ("Demag Cranes")
announcement today concerning a potential transaction, Konecranes Plc
("Konecranes") confirms that it has approached Demag Cranes on 8 September 2010
to discuss a potential combination of the two companies. This was a preliminary
approach and the management of Demag Cranes has responded that Demag Cranes has
no interest in engaging in any dialogue regarding such a potential combination.
To date there have been no concrete negotiations between the two companies.
As Konecranes has previously stated, we believe there is a need for
consolidation in the crane industry, particularly in Europe. Konecranes is
continuously evaluating its strategic options in this respect. We believe that a
combination of Konecranes and Demag Cranes would follow a convincing industrial
logic and would be highly beneficial to both companies and their respective
stakeholders. Konecranes is convinced that if Demag Cranes were willing to
engage in a dialogue, a structure for a potential business combination could be
agreed that would be in the interest of both companies' stakeholders and also be
viable from a regulatory perspective. However, currently there is no certainty
that any transaction will materialize.
Konecranes presently does not intend to comment on this matter any further. Any
further announcement will be made only if appropriate.”
On October 11, 2010, Konecranes announced that it has entered into an agreement
to acquire the Indian crane company WMI Cranes Ltd. (“WMI”). The company is one
of the leading manufacturers of heavy-duty cranes in India. For the year ending
March 31, 2010, WMI's net sales amounted to approximately EUR 30 million. The
company has an order book of more than EUR 50 million and its order intake
prospects are good. WMI employs approximately 350 people and an additionally
contracted workforce of about 600 persons.
Konecranes will acquire WMI's shares in two phases. In the first phase
Konecranes will acquire 51 percent of the shares for INR 1,690 million (EUR 28
million). In the second phase, approximately one year later, Konecranes will
purchase the remaining 49 percent of the shares. The sellers are entitled to a
performance linked part of the purchase price and the total maximum price for
100 percent of the shares in WMI can amount to approximately INR 3,600 million
(EUR 60 million). The acquisition is irrevocable. The purchase will be financed
with existing cash reserves.
WMI will be consolidated into Konecranes' financial reporting once the
regulatory approvals have been received. The approvals are expected to be
received during the fourth quarter of 2010. The acquisition is expected to have
an immaterial impact on Konecranes' results in 2010.
RISKS AND UNCERTAINTIES
The Group's principal short-term risks and uncertainties derive from a possible
renewed downturn in the world economy due to the sovereign credit crisis, for
example, or other unforeseen events. A decrease in demand for Konecranes'
products and services may have a negative effect on the Group's pricing power,
and result in decreasing profits, a possible impairment of goodwill and other
assets, or inventory obsolescence.
A renewed shortage of credit may cause difficulties for Konecranes' customers,
suppliers, and financial and other counterparties. The risk may be realized as a
shortage of supplies or defaulting liabilities.
The supply chain has been downsized due to the low demand for products and it is
possible that as demand picks up, Konecranes and its suppliers may not be able
to respond to this instantly, which may result in delays of deliveries and
increased costs as a consequence. In addition to Konecranes' own assembly
operations, the lack of raw materials and components may cause bottlenecks.
The economic growth, particularly in China, has had an inflatory impact on raw
material prices, which may affect Konecranes' profits if product sales prices
cannot be adjusted correspondingly due to intense competition, for example. On
the other hand, Konecranes serves several producers whose propensity to invest
can increase due to improved profitability on higher raw material prices.
Challenges in financing may lead customers to postpone projects or even to
cancel existing orders. A renewed downturn in the world economy would increase
postponement of deliveries and cancellations of orders. Advance payments are an
integral part of Konecranes' project business and they have played a crucial
role in mitigating the adverse effects from postponements of certain deliveries
and minor cancellations. Konecranes intends to avoid incurring costs of major
projects under construction in excess of advance payments. Konecranes aims to
continue a strict policy in these regards.
Currency rate fluctuations have increased and may significantly affect the
company's performance. The USD/EUR exchange rate has the largest impact on
financial performance through a combination of the translational effect and
transactional exposure.
From this report, Konecranes separates the market outlook describing the
expected demand from financial guidance.
MARKET OUTLOOK
The demand for maintenance services is expected to continue to be above last
year's level due to higher capacity utilization within customer industries. The
demand for new equipment is expected to remain robust in Asia-Pacific and in
emerging markets in general while customers' decision-making is still
conditional on the sustainability of economic growth in western Europe and North
America. Price competition is likely to remain.
FINANCIAL GUIDANCE
Konecranes reiterates the previous guidance for the year 2010 for sales and
operating profit:
Growing demand will support our sales and profitability already during the
second half of 2010. However, due to the low first half year sales we expect
full year 2010 sales to be lower than in 2009. We expect the operating profit in
2010 to be lower than in 2009 before restructuring costs.
Helsinki, October 21, 2010
Konecranes Plc
Board of Directors
Disclaimer
It should be noted that certain statements in this report, which are not
historical facts, including, without limitation, those regarding
- expectations for general economic development and market situation,
- expectations for general developments in the industry,
- expectations regarding customer industry profitability and investment
willingness,
- expectations for company growth, development and profitability,
- expectations regarding market demand for the company's products and services,
- expectations regarding the successful completion of acquisitions on a timely
basis and our ability to achieve the set targets and synergies,
- expectations regarding competitive conditions,
- expectations regarding cost savings,
- and statements preceded by "believes," "expects," "anticipates," "foresees" or
similar expressions, are forward-looking statements. These statements are based
on current expectations, decisions and plans and currently known facts.
Therefore, they involve risks and uncertainties, which may cause actual results
to materially differ from the results currently expected by the company. Such
factors include, but are not limited to,
- general economic conditions, including fluctuations in exchange rates and
interest levels,
- the competitive situation, especially significant products or services
developed by our competitors,
- industry conditions,
- the company's own operating factors, including the success of production,
product development, project management, quality, and timely delivery of our
products and services and their continuous development,
- the success of pending and future acquisitions and restructurings.
Summary Financial Statements and Notes
Accounting principles
The presented financial information is prepared in accordance with International
Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU.
As of January 1, 2010 Konecranes applied one amended standard: IFRS 3, Business
Combinations (Revised). In revised IFRS 3 the acquisition-related costs will be
expensed through statement of income at time that such services are received.
This is a significant difference from former practice in which such costs were
included in the cost of the business combination and therefore included in the
calculation of goodwill. The other year 2010 standards will have immaterial
impact on future financial statements.
Konecranes is introducing also 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. The comparison figures in year 2009 have been changed
accordingly.
Otherwise Konecranes applies the same accounting policies as were applied in the
2009 annual financial statements.
The figures presented in the tables below have been rounded to one decimal,
which should be taken into account when reading the sum figures.
The numbers stated in this bulletin have not been subject to audit.
--------------------------------------------------------------------------------
| Consolidated statement of income |
--------------------------------------------------------------------------------
| EUR | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | 1-12/ |
| million | 2010 | 2009 | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 393.6| 368.7 | 1 076.9 | 1 242.4 | -13.3 | 1,671.3 |
| | | | | | | |
--------------------------------------------------------------------------------
| Other | 0.8 | 0.4 | 2.4 | 1.9 | | 2.9 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Depreciati | -7.8 | -7.4 | -23.1 | -20.7 | | -32.5 |
| on and | | | | | | |
| impairment | | | | | | |
| s | | | | | | |
--------------------------------------------------------------------------------
| Other |-352.3 -351.5 | -989.6 | -1,147.8 | | -1,543.8 |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating | 34.3 | 10.2 | 66.6 | 75.8 | -12.1 | 97.9 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| Share of | 0.3 | -0.7 | 1.3 | -2.1 | | -2.2 |
| associates | | | | | | |
| ' and | | | | | | |
| joint | | | | | | |
| ventures' | | | | | | |
| result | | | | | | |
--------------------------------------------------------------------------------
| Financial | -1.8 | -2.3 | -2.0 | -3.7 | | -7.1 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Profit | 32.7 | 7.2 | 65.9 | 70.0 | -5.9 | 88.6 |
| before | | | | | | |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Taxes | -9.7 | -3.0 | -19.6 | -20.9 | | -26.1 |
--------------------------------------------------------------------------------
| NET PROFIT | 23.0 | 4.2 | 46.3 | 49.1 | -5.8 | 62.5 |
| FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for the period attributable to: |
--------------------------------------------------------------------------------
| Shareholde | 23.1 | 4.7 | 47.1 | 49.9 | | 63.6 |
| rs of the | | | | | | |
| parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | -0.1 | -0.5 | -0.8 | -0.8 | | -1.1 |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | 0.39 | 0.08 | 0.80 | 0.85 | -5.6 | 1.08 |
| per share, | | | | | | |
| basic | | | | | | |
| (EUR) | | | | | | |
--------------------------------------------------------------------------------
| Earnings | 0.39 | 0.08 | 0.80 | 0.84 | -5.8 | 1.08 |
| per share, | | | | | | |
| diluted | | | | | | |
| (EUR) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
--------------------------------------------------------------------------------
| EUR | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | 1-12/ |
| million | 2010 | 2009 | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit | 23.0 | 4.2 | 46.3 | 49.1 | -5.8 | 62.5 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for the period, net of tax |
--------------------------------------------------------------------------------
| Exchange | -14.3| -4.4 | 14.7 | -4.2 | | -1.1 |
| difference | | | | | | |
| s on | | | | | | |
| translatin | | | | | | |
| g foreign | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | 2.7 | 2.3 | -3.6 | 4.4 | | 1.9 |
| hedges | | | | | | |
--------------------------------------------------------------------------------
| Income tax | -0.7 | -0.6 | 0.9 | -1.2 | | -0.5 |
| relating | | | | | | |
| to | | | | | | |
| components | | | | | | |
| of other | | | | | | |
| comprehens | | | | | | |
| ive income | | | | | | |
--------------------------------------------------------------------------------
| Other | -12.3| -2.7 | 12.1 | -0.9 | | 0.3 |
| comprehens | | | | | | |
| ive income | | | | | | |
| for the | | | | | | |
| period, | | | | | | |
| net of tax | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 10.7 | 1.5 | 58.3 | 48.2 | 21.0 | 62.8 |
| COMPREHENS | | | | | | |
| IVE INCOME | | | | | | |
| FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income attributable to: |
--------------------------------------------------------------------------------
| Shareholde | 11.4 | 2.0 | 59.3 | 49.1 | | 64.0 |
| rs of the | | | | | | |
| parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | -0.7 | -0.5 | -1.0 | -0.9 | | -1.2 |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet |
--------------------------------------------------------------------------------
| EUR million |
--------------------------------------------------------------------------------
| ASSETS | 30.9.2010| | 30.9.2009 | | 31.12.2009 |
| | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | | |
--------------------------------------------------------------------------------
| Goodwill | 76.3 | | 64.4 | | 71.5 |
--------------------------------------------------------------------------------
| Intangible assets | 63.5 | | 60.5 | | 65.8 |
--------------------------------------------------------------------------------
| Property, plant and | 96.1 | | 76.6 | | 91.3 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Advance payments and | 20.6 | | 11.5 | | 11.8 |
| construction in progress | | | | | |
--------------------------------------------------------------------------------
| Investments accounted | 32.2 | | 4.5 | | 4.5 |
| for using the equity | | | | | |
| method | | | | | |
--------------------------------------------------------------------------------
| Available-for-sale | 1.6 | | 2.1 | | 1.8 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Long-term loans | 3.4 | | 2.1 | | 2.7 |
| receivable | | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 44.5 | | 34.6 | | 37.3 |
--------------------------------------------------------------------------------
| Total non-current assets | 338.1 | | 256.3 | | 286.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | | |
--------------------------------------------------------------------------------
| Inventories | | | | | |
--------------------------------------------------------------------------------
| Raw material and | 118.5 | | 146.7 | | 125.0 |
| semi-manufactured goods | | | | | |
--------------------------------------------------------------------------------
| Work in progress | 149.7 | | 145.4 | | 114.3 |
--------------------------------------------------------------------------------
| Advance payments | 11.3 | | 10.9 | | 8.9 |
--------------------------------------------------------------------------------
| Total inventories | 279.6 | | 303.0 | | 248.2 |
--------------------------------------------------------------------------------
| Accounts receivable | 264.4 | | 264.5 | | 265.4 |
--------------------------------------------------------------------------------
| Loans receivable | 2.1 | | 2.9 | | 2.9 |
--------------------------------------------------------------------------------
| Other receivables | 24.8 | | 21.9 | | 23.5 |
--------------------------------------------------------------------------------
| Deferred assets | 128.5 | | 111.2 | | 96.1 |
--------------------------------------------------------------------------------
| Cash and cash | 103.3 | | 88.5 | | 137.5 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| Total current assets | 802.6 | | 792.1 | | 773.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 1,140.7 | | 1,048.4 | | 1,060.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | | | | | |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 30.9.2010| | 30.9.2009 | | 31.12.2009 |
| | | | | | |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | |
| equity holders of the | | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Share capital | 30.1 | | 30.1 | | 30.1 |
--------------------------------------------------------------------------------
| Share premium account | 39.3 | | 39.3 | | 39.3 |
--------------------------------------------------------------------------------
| Fair value reserves | -0.4 | | 4.2 | | 2.3 |
--------------------------------------------------------------------------------
| Translation difference | -3.5 | | -21.6 | | -18.4 |
--------------------------------------------------------------------------------
| Paid in capital | 10.5 | | 8.8 | | 9.0 |
--------------------------------------------------------------------------------
| Retained earnings | 287.9 | | 276.4 | | 276.6 |
--------------------------------------------------------------------------------
| Net profit for the | 47.1 | | 49.9 | | 63.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total equity | 410.9 | | 387.1 | | 402.5 |
| attributable to equity | | | | | |
| holders of the parent | | | | | |
| company | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 4.8 | | 2.0 | | 4.6 |
--------------------------------------------------------------------------------
| Total equity | 415.7 | | 389.1 | | 407.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 39.2 | | 18.0 | | 38.6 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Other long-term | 57.1 | | 56.5 | | 56.1 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 18.1 | | 18.9 | | 18.6 |
--------------------------------------------------------------------------------
| Total non-current | 114.4 | | 93.5 | | 113.3 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Provisions | 53.2 | | 54.9 | | 61.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 70.3 | | 60.6 | | 26.9 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Advance payments | 170.8 | | 157.3 | | 156.7 |
| received | | | | | |
--------------------------------------------------------------------------------
| Progress billings | 11.9 | | 11.4 | | 18.9 |
--------------------------------------------------------------------------------
| Accounts payable | 89.1 | | 75.1 | | 83.7 |
--------------------------------------------------------------------------------
| Other short-term | 14.8 | | 20.3 | | 13.8 |
| liabilities | | | | | |
| (non-interest bearing) | | | | | |
--------------------------------------------------------------------------------
| Accruals | 200.4 | | 186.2 | | 178.7 |
--------------------------------------------------------------------------------
| Total current | 557.4 | | 510.9 | | 478.9 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 725.0 | | 659.3 | | 653.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | 1,140.7 | | 1,048.4 | | 1,060.4 |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity |
--------------------------------------------------------------------------------
| | |
| | Equity attributable to equity holders of the parent company |
| | |
| | |
--------------------------------------------------------------------------------
| EUR million | Share | Share | Share | Cash flow | Translation |
| | capit | premium | issue | hedge | difference |
| | al | account | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | 2.3 | -18.4 |
| 1 January, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| Option | | | | | |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share based | | | | | |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Business | | | | | |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Donations*** | | | | | |
--------------------------------------------------------------------------------
| Total | | | | -2.7 | 14.9 |
| comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | -0.4 | -3.5 |
| 30 September, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.1 | 0.9 | -17.4 |
| 1 January, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Option | | | | | |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | -0.1 | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share based | | | | | |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Employee | | | | | |
| benefit | | | | | |
| scheme for | | | | | |
| executive | | | | | |
| management* | | | | | |
--------------------------------------------------------------------------------
| Change of | | | | | |
| control in | | | | | |
| associated | | | | | |
| company** | | | | | |
--------------------------------------------------------------------------------
| Business | | | | | |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 3.3 | -4.2 |
| comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | 4.2 | -21.6 |
| 30 September, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | |
| | Equity attributable to equity | | |
| | holders of the parent company | | |
| | | | |
--------------------------------------------------------------------------------
| EUR million | Paid | Retained | Total | Minority | Total |
| | in | earnings | | interest | equity |
| | cap | | | | |
| | ital | | | | |
--------------------------------------------------------------------------------
| Balance at | 9.0 | 340.2 | 402.5 | 4.6 | 407.1 |
| 1 January, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| Option | 1.4 | | 1.4 | | 1.4 |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Dividends | | -53.5 | -53.5 | 0.5 | -53.0 |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share based | | 2.7 | 2.7 | | 2.7 |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Business | | -0.6 | -0.6 | 0.7 | 0.1 |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Donations*** | | -0.9 | -0.9 | | -0.9 |
--------------------------------------------------------------------------------
| Total | | 47.1 | 59.3 | -1.0 | 58.3 |
| comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 10.5 | 335.0 | 410.9 | 4.8 | 415.7 |
| 30 September, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 7.3 | 338.5 | 398.8 | 1.9 | 400.7 |
| 1 January, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Option | 1.6 | | 1.6 | | 1.6 |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | -0.1 | | -0.1 |
--------------------------------------------------------------------------------
| Dividends | | -53.3 | -53.3 | | -53.3 |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share based | | 2.6 | 2.6 | | 2.6 |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Employee | | -8.4 | -8.4 | 1.3 | -7.1 |
| benefit | | | | | |
| scheme for | | | | | |
| executive | | | | | |
| management* | | | | | |
--------------------------------------------------------------------------------
| Change of | | -3.0 | -3.0 | | -3.0 |
| control in | | | | | |
| associated | | | | | |
| company** | | | | | |
--------------------------------------------------------------------------------
| Business | | | 0.0 | -0.3 | -0.3 |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Total | | 49.9 | 49.0 | -0.9 | 48.1 |
| comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 8.8 | 326.3 | 387.1 | 2.0 | 389.1 |
| 30 September, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Consolidation of KCR Managment Oy (incentive arrangement for Konecranes |
| Group executive management) |
--------------------------------------------------------------------------------
| ** Increase of Konecranes' influence in the management of associated company |
| ZAO Zaporozhje Kran in Ukraine. |
--------------------------------------------------------------------------------
| *** Donations (after taxes) to Finnish Universities based on decision made |
| by AGM |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement |
--------------------------------------------------------------------------------
| EUR million | 1-9/2010 | | 1-9/2009 | | 1-12/2009 |
--------------------------------------------------------------------------------
| Cash flow from operating activities |
--------------------------------------------------------------------------------
| Net income | 46.3 | | 49.1 | | 62.5 |
--------------------------------------------------------------------------------
| Adjustments to net income | | | | | |
--------------------------------------------------------------------------------
| Taxes | 19.6 | | 20.9 | | 26.1 |
--------------------------------------------------------------------------------
| Financial income and | 2.2 | | 4.0 | | 7.5 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Share of associates' and | -1.3 | | 2.1 | | 2.2 |
| joint ventures' result | | | | | |
--------------------------------------------------------------------------------
| Dividend income | -0.2 | | -0.2 | | -0.4 |
--------------------------------------------------------------------------------
| Depreciation and | 23.1 | | 20.7 | | 32.5 |
| impairments | | | | | |
--------------------------------------------------------------------------------
| Profits and losses on | -0.1 | | -0.2 | | 0.6 |
| sale of fixed assets | | | | | |
--------------------------------------------------------------------------------
| Other adjustments | 0.1 | | 0.2 | | 1.8 |
--------------------------------------------------------------------------------
| Operating income before | 89.7 | | 96.5 | | 132.9 |
| change in net working | | | | | |
| capital | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in interest-free | 4.5 | | 151.3 | | 171.8 |
| short-term receivables | | | | | |
--------------------------------------------------------------------------------
| Change in inventories | -18.7 | | 39.1 | | 94.9 |
--------------------------------------------------------------------------------
| Change in interest-free | -0.9 | | -100.0 | | -111.9 |
| short-term liabilities | | | | | |
--------------------------------------------------------------------------------
| Change in net working | -15.1 | | 90.4 | | 154.8 |
| capital | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operations | 74.6 | | 187.0 | | 287.7 |
| before financing items | | | | | |
| and taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest received | 1.7 | | 1.0 | | 1.2 |
--------------------------------------------------------------------------------
| Interest paid | -4.2 | | -4.2 | | -4.6 |
--------------------------------------------------------------------------------
| Other financial income | -3.2 | | 1.7 | | -1.6 |
| and expenses | | | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -42.7 | | -52.3 | | -59.6 |
--------------------------------------------------------------------------------
| Financing items and taxes | -48.4 | | -53.8 | | -64.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash from operating | 26.2 | | 133.2 | | 223.0 |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities |
--------------------------------------------------------------------------------
| Acquisition of Group | -9.2 | | -6.2 | | -12.3 |
| companies, net of cash | | | | | |
--------------------------------------------------------------------------------
| Divestment of Group | 0.0 | | 0.6 | | -0.4 |
| companies, net of cash | | | | | |
--------------------------------------------------------------------------------
| Acquisition of shares in | -27.0 | | 0.0 | | 0.0 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Investments in other | 0.0 | | -0.1 | | -0.2 |
| shares | | | | | |
--------------------------------------------------------------------------------
| Capital expenditures | -19.8 | | -17.8 | | -29.7 |
--------------------------------------------------------------------------------
| Proceeds from sale of | 1.0 | | 0.5 | | 0.9 |
| fixed assets | | | | | |
--------------------------------------------------------------------------------
| Dividends received | 0.2 | | 0.2 | | 0.4 |
--------------------------------------------------------------------------------
| Net cash used in | -54.8 | | -22.8 | | -41.2 |
| investing activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | -28.6 | | 110.3 | | 181.8 |
| financing activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities |
--------------------------------------------------------------------------------
| Proceeds from options | 1.1 | | 1.5 | | 1.7 |
| exercised and share | | | | | |
| issues | | | | | |
--------------------------------------------------------------------------------
| Related Party net | 0.0 | | -7.1 | | -7.1 |
| investment to Konecranes | | | | | |
| Plc shares | | | | | |
--------------------------------------------------------------------------------
| Proceeds from long-term | 2.8 | | 100.0 | | 132.6 |
| borrowings | | | | | |
--------------------------------------------------------------------------------
| Repayments of long-term | -3.8 | | -197.6 | | -207.2 |
| borrowings | | | | | |
--------------------------------------------------------------------------------
| Proceeds from (+), | 39.0 | | 38.1 | | -8.4 |
| payments of (-) | | | | | |
| short-term borrowings | | | | | |
--------------------------------------------------------------------------------
| Change in long-term | -0.9 | | -0.2 | | -0.9 |
| receivables | | | | | |
--------------------------------------------------------------------------------
| Change in short-term | 1.2 | | -2.6 | | -2.6 |
| receivables | | | | | |
--------------------------------------------------------------------------------
| Dividends paid to equity | -53.0 | | -53.3 | | -53.3 |
| holders of the parent | | | | | |
--------------------------------------------------------------------------------
| Net cash used in | -13.6 | | -121.3 | | -145.2 |
| financing activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation differences | 7.9 | | -1.5 | | 0.0 |
| in cash | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change of cash and cash | -34.3 | | -12.4 | | 36.6 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents | 137.5 | | 100.9 | | 100.9 |
| at beginning of period | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 103.3 | | 88.5 | | 137.5 |
| at end of period | | | | | |
--------------------------------------------------------------------------------
| Change of cash and cash | -34.3 | | -12.4 | | 36.6 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| The effect of changes in exchange rates has been eliminated by converting |
| the beginning balance at the rates current on |
| the last day of the reporting period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment information |
--------------------------------------------------------------------------------
| 1. BUSINESS SEGMENTS |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | | | | | | |
--------------------------------------------------------------------------------
| Orders received | 1-9/2010 | % of | 1-9/2009| % of | 1-12/2009 | % of |
| by Business Area | | total | | total | | total |
--------------------------------------------------------------------------------
| Service 1) | 451.3 | 41 | 376.5 | 36 | 498.4 | 35 |
--------------------------------------------------------------------------------
| Equipment | 655.7 | 59 | 672.5 | 64 | 934.6 | 65 |
--------------------------------------------------------------------------------
| ./. Internal | -48.7 | | -61.3 | | -84.1 | |
--------------------------------------------------------------------------------
| Total | 1,058.3 | 100 | 987.7 | 100 | 1,348.9 | 100 |
--------------------------------------------------------------------------------
| 1) Excl. Service | | | | | | |
| Contract Base | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | 30.9.2010 | % of |30.9.2009| % of | 31.12.2009 | % of |
| | | total | | total | | total |
--------------------------------------------------------------------------------
| Order book total | | | | | | |
| 2) | | | | | | |
--------------------------------------------------------------------------------
| Service | 111.7 | 16 | 88.1 | 13 | 75.9 | 12 |
--------------------------------------------------------------------------------
| Equipment | 585.6 | 84 | 565.6 | 87 | 547.8 | 88 |
--------------------------------------------------------------------------------
| ./. Internal | -17.6 | | -15.3 | | -16.8 | |
--------------------------------------------------------------------------------
| Total | 679.7 | 100 | 638.4 | 100 | 607.0 | 100 |
--------------------------------------------------------------------------------
| 2) Percentage of | | | | | | |
| completion | | | | | | |
| deducted | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Sales by | 1-9/2010 | % of | 1-9/200 | % of | 1-12/2009 | % of |
| Business Area | | total | 9 | total | | total |
--------------------------------------------------------------------------------
| Service | 496.5 | 43 | 496.8 | 37 | 667.2 | 37 |
--------------------------------------------------------------------------------
| Equipment | 660.1 | 57 | 831.1 | 63 | 1,115.1 | 63 |
--------------------------------------------------------------------------------
| ./. Internal | -79.7 | | -85.5 | | -111.1 | |
--------------------------------------------------------------------------------
| Total | 1,076.9 | 100 | 1,242.4 | 100 | 1,671.3 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1-9/2010 | | 1-9/2009| | 1-12/2009 | |
| (EBIT) by | | | | | | |
| Business Area | | | | | | |
--------------------------------------------------------------------------------
| excluding | MEUR | EBIT | MEUR | EBIT % | MEUR | EBIT |
| restructuring | | % | | | | % |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Service | 40.4 | 8.1 | 45.2 | 9.1 | 61.0 | 9.1 |
--------------------------------------------------------------------------------
| Equipment | 39.9 | 6.1 | 61.4 | 7.4 | 76.7 | 6.9 |
--------------------------------------------------------------------------------
| Group costs and | -11.1 | | -15.0 | | -18.9 | |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| Total | 69.2 | 6.4 | 91.6 | 7.4 | 118.8 | 7.1 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1-9/2010 | | 1-9/2009| | 1-12/2009 | |
| (EBIT) by | | | | | | |
| Business Area | | | | | | |
--------------------------------------------------------------------------------
| including | MEUR | EBIT | MEUR | EBIT % | MEUR | EBIT |
| restructuring | | % | | | | % |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Service | 40.4 | 8.1 | 44.0 | 8.9 | 58.3 | 8.7 |
--------------------------------------------------------------------------------
| Equipment | 37.3 | 5.6 | 46.7 | 5.6 | 58.5 | 5.2 |
--------------------------------------------------------------------------------
| Group costs and | -11.1 | | -15.0 | | -18.9 | |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| Total | 66.6 | 6.2 | 75.8 | 6.1 | 97.9 | 5.9 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Capital Employed | 1-9/2010 | | 1-9/2009| | 1-12/2009 | |
| and ROCE% | | | | | | |
--------------------------------------------------------------------------------
| | MEUR | | MEUR | | MEUR | ROCE |
| | | | | | | % |
--------------------------------------------------------------------------------
| Service | 152.7 | | 143.7 | | 130.7 | 43.8 |
--------------------------------------------------------------------------------
| Equipment | 223.7 | | 264.4 | | 208.7 | 22.9 |
--------------------------------------------------------------------------------
| Unallocated | 148.8 | | 59.7 | | 133.2 | |
| Capital Employed | | | | | | |
--------------------------------------------------------------------------------
| Total | 525.2 | | 467.7 | | 472.6 | 19.3 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Personnel by | 30.9.2010 | % of |30.9.2009| % of | 31.12.2009 | % of |
| Business Area | | total | | total | | total |
--------------------------------------------------------------------------------
| (at the end of | | | | | | |
| the period) | | | | | | |
--------------------------------------------------------------------------------
| Service | 5,125 | 52 | 5,033 | 53 | 4,991 | 51 |
--------------------------------------------------------------------------------
| Equipment | 4,626 | 47 | 4,334 | 46 | 4,742 | 48 |
--------------------------------------------------------------------------------
| Group staff | 44 | 0 | 52 | 1 | 49 | 1 |
--------------------------------------------------------------------------------
| Total | 9,795 | 100 | 9,419 | 100 | 9,782 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 2. GEOGRAPHICAL SEGMENTS |
| |
--------------------------------------------------------------------------------
| EUR million | | | | | | |
--------------------------------------------------------------------------------
| Sales by market | 1-9/2010 | % of | 1-9/2009| % of | 1-12/2009 | % of |
| | | total | | total | | total |
--------------------------------------------------------------------------------
| Europe-Middle | 565.0 | 52 | 683.8 | 55 | 928.0 | 56 |
| East-Africa | | | | | | |
| (EMEA) | | | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 332.4 | 31 | 365.9 | 29 | 479.5 | 29 |
--------------------------------------------------------------------------------
| Asia-Pacific | 179.5 | 17 | 192.7 | 16 | 263.8 | 16 |
| (APAC) | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,076.9 | 100 | 1,242.4 | 100 | 1,671.3 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Personnel by | 30.9.2010 | % of |30.9.2009| % of | 31.12.2009 | % of |
| region | | total | | total | | total |
| (at the end of | | | | | | |
| the period) | | | | | | |
--------------------------------------------------------------------------------
| Europe-Middle | 5,562 | 57 | 5,646 | 60 | 5,533 | 57 |
| East-Africa | | | | | | |
| (EMEA) | | | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 2,217 | 23 | 2,298 | 24 | 2,236 | 23 |
--------------------------------------------------------------------------------
| Asia-Pacific | 2,016 | 21 | 1,475 | 16 | 2,013 | 21 |
| (APAC) | | | | | | |
--------------------------------------------------------------------------------
| Total | 9,795 | 100 | 9,419 | 100 | 9,782 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Notes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 30.9.2010 | 30.9.2009 | Change | 31.12.2009 |
| | | | % | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.80 | 0.85 | -5.6 | 1.08 |
| basic (EUR) | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.80 | 0.84 | -5.8 | 1.08 |
| diluted (EUR) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on capital employed | 18.8 | 32.7 | -42.5 | 19.3 |
| %, | | | | |
| Rolling 12 Months (R12M) | | | | |
--------------------------------------------------------------------------------
| Return on equity %, | 14.8 | 26.7 | -44.6 | 15.5 |
| Rolling 12 Months (R12M) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share (EUR) | 6.97 | 6.59 | 5.8 | 6.84 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | 1.3 | 1.4 | -7.1 | 1.4 |
--------------------------------------------------------------------------------
| Gearing % | 0.2 | -3.8 | -105.3 | -19.1 |
--------------------------------------------------------------------------------
| Solidity % | 42.9 | 43.7 | -1.8 | 45.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, EUR million | 89.7 | 96.5 | -7.0 | 130.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments total (excl. | 11.3 | 13.9 | -18.3 | 25.7 |
| acquisitions), EUR million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing net debt, | 0.7 | -14.9 | -105.0 | -77.7 |
| EUR million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net working capital, EUR | 183.3 | 211.1 | -13.2 | 138.8 |
| million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of personnel | 9,677 | 9,720 | -0.4 | 9,811 |
| during the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | 58,909,006| 58,967,880 | -0.1 | 58,922,323 |
| outstanding, basic | | | | |
------------------------------------------
--------------------------------------
| Average number of shares | 59,205,578| 59,105,324 | 0,2 | 59,085,936 |
| outstanding, diluted | | | | |
--------------------------------------------------------------------------------
| Number of shares outstanding | 58,959,664| 58,789,424 | 0,3 | 58,812,624 |
| | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The period end exchange | 30.9.2010 | 30.9.2009 | Change | 31.12.2009 |
| rates*: | | | % | |
--------------------------------------------------------------------------------
| USD - US dollar | 1.341 | 1.467 | 9.4 | 1.441 |
--------------------------------------------------------------------------------
| CAD - Canadian dollar | 1.380 | 1.604 | 16.2 | 1.513 |
--------------------------------------------------------------------------------
| GBP - Pound sterling | 0.853 | 0.919 | 7.7 | 0.888 |
--------------------------------------------------------------------------------
| CNY - Chinese yuan | 8.997 | 10.017 | 11.3 | 9.835 |
--------------------------------------------------------------------------------
| SGD - Singapore dollar | 1.776 | 2.079 | 17.1 | 2.019 |
--------------------------------------------------------------------------------
| SEK - Swedish krona | 9.207 | 10.154 | 10.3 | 10.252 |
--------------------------------------------------------------------------------
| NOK - Norwegian krone | 7.948 | 8.502 | 7.0 | 8.300 |
--------------------------------------------------------------------------------
| AUD - Australian dollar | 1.405 | 1.695 | 20.7 | 1.601 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The period average exchange | 30.9.2010 | 30.9.2009 | Change | 31.12.2009 |
| rates*: | | | % | |
--------------------------------------------------------------------------------
| USD - US dollar | 1.314 | 1.365 | 3.9 | 1.395 |
--------------------------------------------------------------------------------
| CAD - Canadian dollar | 1.361 | 1.594 | 17.1 | 1.585 |
--------------------------------------------------------------------------------
| GBP - Pound sterling | 0.857 | 0.886 | 3.3 | 0.891 |
--------------------------------------------------------------------------------
| CNY - Chinese yuan | 8.945 | 9.326 | 4.3 | 9.529 |
--------------------------------------------------------------------------------
| SGD - Singapore dollar | 1.819 | 2.011 | 10.6 | 2.024 |
--------------------------------------------------------------------------------
| SEK - Swedish krona | 9.657 | 10.718 | 11.0 | 10.618 |
--------------------------------------------------------------------------------
| NOK - Norwegian krone | 7.990 | 8.844 | 10.7 | 8.726 |
--------------------------------------------------------------------------------
| AUD - Australian dollar | 1.467 | 1.826 | 24.5 | 1.773 |
--------------------------------------------------------------------------------
| *Konecranes applies a weekly calendar in its financial reporting. The |
| presented exchange rates are determined by rates on the last Friday of the |
| period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES AND PLEDGED ASSETS |
--------------------------------------------------------------------------------
| EUR million | 30.9.2010| | 30.9.2009| | 31.12.2009 | |
| | | | | | | |
--------------------------------------------------------------------------------
| For own commercial | | | | | | |
| obligations | | | | | | |
--------------------------------------------------------------------------------
| Pledged assets | 0.0 | | 0.1 | | 0.0 | |
--------------------------------------------------------------------------------
| Guarantees | 344.8 | | 218.6 | | 212.0 | |
--------------------------------------------------------------------------------
| Leasing liabilities | | | | | | |
--------------------------------------------------------------------------------
| Next year | 30.0 | | 30.4 | | 27.7 | |
--------------------------------------------------------------------------------
| Later on | 68.3 | | 72.9 | | 71.3 | |
--------------------------------------------------------------------------------
| Other | 0.1 | | 0.2 | | 0.2 | |
--------------------------------------------------------------------------------
| Total | 443.1 | | 322.1 | | 311.1 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing contracts comply with normal practices in the countries concerned. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities relating to litigation |
--------------------------------------------------------------------------------
| Various legal actions, claims and other proceedings are pending against the |
| Group in various countries. These actions, claims and other proceedings are |
| typical for this industry and consistent with a global business offering |
| that encompasses a wide range of products and services. These matters |
| involve contractual disputes, warranty claims, product liability (including |
| design defects, manufacturing defects, failure to warn and asbestos legacy), |
| employment, vehicles and other matters involving claims of general |
| liability. |
| While the final outcome of these matters cannot be predicted with certainty |
| Konecranes is of the opinion, based on the information available to date and |
| considering the grounds presented for such claims, the available insurance |
| coverage and the reserves made, that the outcome of such actions, claims and |
| other proceedings, if unfavorable, would not have a material, adverse impact |
| on the financial condition of the Group. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS |
--------------------------------------------------------------------------------
| EUR million | 30.9. | 30.9. | 30.9. | 30.9. | 31.12. | 31.12. |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
--------------------------------------------------------------------------------
| Foreign exchange | 217.1 | -0.9 | 189.2 | 4.9 | 129.5 | 2.6 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Electricity | 1.9 | 0.0 | 1.9 | -0.4 | 2.1 | -0.2 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Total | 219.0 | -0.9 | 191.1 | 4.5 | 131.6 | 2.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivatives are used for hedging currency and interest rate risks, as well |
| as the risk of electricity price fluctuations. The Company applies hedge |
| accounting on the derivatives used to hedge cash flows in large projects in |
| Business Area Equipment. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ACQUISITIONS |
| |
--------------------------------------------------------------------------------
| During January -September, Konecranes made five small acquisitions which |
| related to machine tool service (MTS) business in Denmark, United Kingdom |
| and United States. In July 2010 Konecranes acquired the service company |
| Bouyer Manutention (BM) based in Tours, France. BM has 38 employees and net |
| sales of approximately EUR 5 million (2009). |
--------------------------------------------------------------------------------
| The preliminary fair values of the identifiable assets and liabilities of |
| the acquired businesses at date of acquisitions are summarized below. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 30.9.2010 | 30.9.2010| | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| | Recognized | Carrying | | | | |
| | on | value | | | | |
| | acquisition| | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 4.1 | 0.1 | | | | |
--------------------------------------------------------------------------------
| Tangible assets | 0.8 | 0.6 | | | | |
--------------------------------------------------------------------------------
| Inventories | 0.6 | 0.4 | | | | |
--------------------------------------------------------------------------------
| Account receivables and | 1.7 | 1.7 | | | | |
| other assets | | | | | | |
--------------------------------------------------------------------------------
| Cash and bank | 1.5 | 1.5 | | | | |
--------------------------------------------------------------------------------
| Total assets | 8.7 | 4.3 | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.8 | 0.0 | | | | |
--------------------------------------------------------------------------------
| Accounts payable | 0.7 | 0.7 | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 1.3 | 1.3 | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 2.8 | 2.0 | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net assets | 5.9 | 2.3 | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Acquisition costs | 8.1 | | | | | |
--------------------------------------------------------------------------------
| Goodwill | 2.2 | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Cash outflow on | | | | | | |
| acquisition | | | | | | |
--------------------------------------------------------------------------------
| Acquisition costs | 8.1 | | | | | |
--------------------------------------------------------------------------------
| Liabilities assumed | -1.4 | | | | | |
--------------------------------------------------------------------------------
| Acquisition costs paid | 6.7 | | | | | |
| in cash | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | -1.5 | | | | | |
| equivalents of acquired | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Net cash flow arising on | 5.2 | | | | | |
| acquisition | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of associated company: |
| |
--------------------------------------------------------------------------------
| On March 23, 2010 Konecranes purchased 29,750 shares (22.0% of the share |
| capital and voting rights) in the Japanese hoist, crane and material |
| handling equipment company Kito Corporation ("Kito"). The purchase price for |
| the shares in Kito was JPY 111,800 per share. The total value of the stake |
| purchased amounted to approximately JPY 3.3 billion (EUR 27 million). The |
| purchase was financed with existing cash reserves. |
| Furthermore, Kito |
| repurchased 10.0% of the share capital on March 24, 2010. Post the share |
| purchase by Konecranes and the Kito share buyback, Konecranes has |
| approximately 24.4% of the voting rights in Kito. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase in ownership interest of a subsidiary: |
| |
--------------------------------------------------------------------------------
| In June 04, 2010 Konecranes finalized the agreement to increase its |
| ownership in Japanese company MHS Konecranes Co., Ltd. to 100% by acquiring |
| the remaining 35% stake from Meidensha Corporation. The purchase price was |
| recognized as decrease of minority interest and retained earnings. |
| |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Quarterly figures |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF INCOME, QUARTERLY |
--------------------------------------------------------------------------------
| EUR | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| million | 2010| 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales |393.6| 377.0 | 306.3 | 428.9 | 368.7 | 431.6 | 442.1 |
| | | | | | | | |
--------------------------------------------------------------------------------
| Other | 0.8 | 0.8 | 0.8 | 1.1 | 0.4 | 0.8 | 0.7 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Depreciat | -7.8| -7.6 | -7.3 | -11.8 | -7.4 | -6.5 | -6.8 |
| ion and | | | | | | | |
| impairmen | | | | | | | |
| ts | | | | | | | |
--------------------------------------------------------------------------------
| Restructu | 0.0 | -2.7 | 0.0 | -5.1 | -13.9 | -1.9 | 0.0 |
| ring | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Other |-352.3 -346.8 | -288.2 | -390.9 | -337.7 | -395.1 | -399.2 |
| operating | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 34.3| 20.7 | 11.6 | 22.2 | 10.2 | 28.8 | 36.8 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Share of | 0.3 | 0.9 | 0.1 | -0.2 | -0.7 | -1.4 | 0.0 |
| associate | | | | | | | |
| s' and | | | | | | | |
| joint | | | | | | | |
| ventures' | | | | | | | |
| result | | | | | | | |
--------------------------------------------------------------------------------
| Financial | -1.8| -0.9 | 0.7 | -3.4 | -2.3 | 0.0 | -1.5 |
| income | | | | | | | |
| and | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Profit |32.7 | 20.8 | 12.4 | 18.6 | 7.2 | 27.4 | 35.4 |
| before | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Taxes | -9.7| -6.2 | -3.7 | -5.2 | -3.0 | -7.8 | -10.1 |
| | | | | | | | |
--------------------------------------------------------------------------------
| Net | 23.0| 14.5 | 8.8 | 13.4 | 4.2 | 19.6 | 25.3 |
| profit | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, QUARTERLY |
| |
--------------------------------------------------------------------------------
| EUR | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| millio | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| n | | | | | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | | | | |
--------------------------------------------------------------------------------
| Goodwi | 76.3 | 73.9 | 72.8 | 71.5 | 64.4 | 59.5 | 58.4 |
| ll | | | | | | | |
--------------------------------------------------------------------------------
| Intang | 63.5 | 65.3 | 66.5 | 65.8 | 60.5 | 61.1 | 61.3 |
| ible | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Proper | 96.1 | 99.4 | 96.1 | 91.3 | 76.6 | 75.5 | 72.7 |
| ty, | | | | | | | |
| plant | | | | | | | |
| and | | | | | | | |
| equipm | | | | | | | |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| Other | 102.3 | 97.2 | 89.5 | 58.1 | 54.8 | 56.5 | 48.8 |
--------------------------------------------------------------------------------
| Total | 338.1 | 335.7 | 324.9 | 286.7 | 256.3 | 252.7 | 241.2 |
| non-cu | | | | | | | |
| rrent | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invent | 279.6 | 288.3 | 271.1 | 248.2 | 303.0 | 322.6 | 356.7 |
| ories | | | | | | | |
--------------------------------------------------------------------------------
| Receiv | 419.8 | 426.4 | 395.5 | 387.9 | 400.5 | 441.3 | 468.3 |
| ables | | | | | | | |
| and | | | | | | | |
| other | | | | | | | |
| curren | | | | | | | |
| t | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 103.3 | 95.1 | 121.1 | 137.5 | 88.5 | 96.9 | 116.0 |
| and | | | | | | | |
| cash | | | | | | | |
| equiva | | | | | | | |
| lents | | | | | | | |
--------------------------------------------------------------------------------
| Total | 802.6 | 809.8 | 787.8 | 773.7 | 792.1 | 860.7 | 941.0 |
| curren | | | | | | | |
| t | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1,140.7 | 1,145.5| 1,112.7| 1,060.4 |1,048.4 | 1,113.4 |1,182.2|
| assets | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 415.7 | 405.1 | 373.7 | 407.1 | 389.1 | 385.4 | 379.7 |
| equity | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cu | 114.4 | 113.2 | 111.8 | 113.3 | 93.5 | 109.3 | 180.4 |
| rrent | | | | | | | |
| liabil | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
| Provis | 53.2 | 59.3 | 58.6 | 61.1 | 54.9 | 42.9 | 46.9 |
| ions | | | | | | | |
--------------------------------------------------------------------------------
| Advanc | 170.8 | 178.4 | 183.4 | 156.7 | 157.3 | 175.2 | 197.1 |
| e | | | | | | | |
| paymen | | | | | | | |
| ts | | | | | | | |
| receiv | | | | | | | |
| ed | | | | | | | |
--------------------------------------------------------------------------------
| Other | 386.6 | 389.5 | 385.3 | 322.2 | 353.6 | 400.6 | 378.2 |
| curren | | | | | | | |
| t | | | | | | | |
| liabil | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
| Total | 725.0 | 740.4 | 739.0 | 653.3 | 659.3 | 728.0 | 802.6 |
| liabil | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1,140.7 | 1,145.5| 1,112.7| 1,060.4 | 1,048.4 | 1,113.4 |1,182.2
| equity | | | | | | | |
| and | | | | | | | |
| liabil | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT - QUARTERLY |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| millio | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| n | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operat | 41.2 | 29.2 | 19.3 | 36.4 | 17.2 | 35.4 | 43.9 |
| ing | | | | | | | |
| income | | | | | | | |
| before | | | | | | | |
| change | | | | | | | |
| in net | | | | | | | |
| workin | | | | | | | |
| g | | | | | | | |
| capita | | | | | | | |
| l | | | | | | | |
--------------------------------------------------------------------------------
| Change | -2.9 | -23.0 | 10.8 | 64.4 | 57.4 | 23.6 | 9.5 |
| in net | | | | | | | |
| workin | | | | | | | |
| g | | | | | | | |
| capita | | | | | | | |
| l | | | | | | | |
--------------------------------------------------------------------------------
| Financ | -6.3 | -12.5 | -29.6 | -10.8 | -8.4 | -24.6 | -20.8 |
| ing | | | | | | | |
| items | | | | | | | |
| and | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Net | 32.1 | -6.3 | 0.5 | 89.9 | 66.2 | 34.4 | 32.6 |
| cash | | | | | | | |
| from | | | | | | | |
| operat | | | | | | | |
| ing | | | | | | | |
| activi | | | | | | | |
| ties | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | -10.9 | -9.0 | -35.0 | -18.4 | -9.2 | -8.7 | -5.0 |
| flow | | | | | | | |
| from | | | | | | | |
| invest | | | | | | | |
| ing | | | | | | | |
| activi | | | | | | | |
| ties | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 21.2 | -15.3 | -34.5 | 71.5 | 57.0 | 25.7 | 27.6 |
| flow | | | | | | | |
| before | | | | | | | |
| financ | | | | | | | |
| ing | | | | | | | |
| activi | | | | | | | |
| ties | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Procee | 0.0 | 0.2 | 0.9 | 0.2 | 0.2 | 0.6 | 0.7 |
| ds | | | | | | | |
| from | | | | | | | |
| option | | | | | | | |
| s | | | | | | | |
| exerci | | | | | | | |
| sed | | | | | | | |
| and | | | | | | | |
| share | | | | | | | |
| issues | | | | | | | |
--------------------------------------------------------------------------------
| Relate | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -7.1 | 0.0 |
| d | | | | | | | |
| Party | | | | | | | |
| net | | | | | | | |
| invest | | | | | | | |
| ment | | | | | | | |
| to | | | | | | | |
| Konecr | | | | | | | |
| anes | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Change | -6.3 | 34.6 | 10.0 | -24.1 | -64.2 | -36.9 | 38.8 |
| of | | | | | | | |
| intere | | | | | | | |
| st-bea | | | | | | | |
| ring | | | | | | | |
| debt | | | | | | | |
--------------------------------------------------------------------------------
| Divide | 0.0 | -53.0 | 0.0 | 0.0 | 0.0 | 0.0 | -53.3 |
| nds | | | | | | | |
| paid | | | | | | | |
| to | | | | | | | |
| equity | | | | | | | |
| holder | | | | | | | |
| s of | | | | | | | |
| the | | | | | | | |
| parent | | | | | | | |
--------------------------------------------------------------------------------
| Net | -6.3 | -18.2 | 10.9 | -23.9 | -64.0 | -43.4 | -13.8 |
| cash | | | | | | | |
| used | | | | | | | |
| in | | | | | | | |
| financ | | | | | | | |
| ing | | | | | | | |
| activi | | | | | | | |
| ties | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transl | -6.7 | 7.6 | 7.1 | 1.5 | -1.4 | -1.4 | 1.3 |
| ation | | | | | | | |
| differ | | | | | | | |
| ences | | | | | | | |
| in | | | | | | | |
| cash | | | | | | | |
--------------------------------------------------------------------------------
| Change | 8.2 | -26.0 | -16.5 | 49.1 | -8.4 | -19.1 | 15.1 |
| of | | | | | | | |
| cash | | | | | | | |
| and | | | | | | | |
| cash | | | | | | | |
| equiva | | | | | | | |
| lents | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 95.1 | 121.1 | 137.5 | 88.5 | 96.9 | 116.0 | 100.9 |
| and | | | | | | | |
| cash | | | | | | | |
| equiva | | | | | | | |
| lents | | | | | | | |
| at | | | | | | | |
| beginn | | | | | | | |
| ing of | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 103.3 | 95.1 | 121.1 | 137.5 | 88.5 | 96.9 | 116.0 |
| and | | | | | | | |
| cash | | | | | | | |
| equiva | | | | | | | |
| lents | | | | | | | |
| at end | | | | | | | |
| of | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Change | 8.2 | -26.0 | -16.5 | 49.1 | -8.4 | -19.1 | 15.1 |
| of | | | | | | | |
| cash | | | | | | | |
| and | | | | | | | |
| cash | | | | | | | |
| equiva | | | | | | | |
| lents | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY SEGMENT INFORMATION |
| |
--------------------------------------------------------------------------------
| EUR | | | | | | | |
| millio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| Orders | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| receiv | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| ed by | | | | | | | |
| Busine | | | | | | | |
| ss | | | | | | | |
| Area | | | | | | | |
--------------------------------------------------------------------------------
| Servic | 152.4 | 159.1 | 139.8 | 121.8 | 124.5 | 126.4 | 125.6 |
| e 1) | | | | | | | |
--------------------------------------------------------------------------------
| Equipm | 240.0 | 219.6 | 196.2 | 262.2 | 205.9 | 202.6 | 263.9 |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| ./. | -19.0 | -14.3 | -15.4 | -22.9 | -22.0 | -19.5 | -19.8 |
| Intern | | | | | | | |
| al | | | | | | | |
--------------------------------------------------------------------------------
| Total | 373.4 | 364.4 | 320.6 | 361.1 | 308.5 | 309.6 | 369.7 |
--------------------------------------------------------------------------------
| 1) | | | | | | | |
| Excl. | | | | | | | |
| Servic | | | | | | | |
| e | | | | | | | |
| Contra | | | | | | | |
| ct | | | | | | | |
| Base | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| book | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| by | | | | | | | |
| Busine | | | | | | | |
| ss | | | | | | | |
| Area | | | | | | | |
--------------------------------------------------------------------------------
| Servic | 111.7 | 106.5 | 87.7 | 75.9 | 88.1 | 93.9 | 109.1 |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Equipm | 585.6 | 598.3 | 558.2 | 547.8 | 565.6 | 599.0 | 701.9 |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| ./. | -17.6 | -19.5 | -4.6 | -16.8 | -15.3 | -12.2 | -19.0 |
| Intern | | | | | | | |
| al | | | | | | | |
--------------------------------------------------------------------------------
| Total | 679.7 | 685.2 | 641.3 | 607.0 | 638.4 | 680.6 | 792.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| by | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| Busine | | | | | | | |
| ss | | | | | | | |
| Area | | | | | | | |
--------------------------------------------------------------------------------
| Servic | 173.2 | 175.2 | 148.0 | 170.5 | 157.6 | 169.5 | 169.7 |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Equipm | 252.6 | 221.6 | 185.8 | 284.0 | 233.5 | 293.0 | 304.6 |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| ./. | -32.3 | -19.8 | -27.6 | -25.6 | -22.4 | -30.9 | -32.2 |
| Intern | | | | | | | |
| al | | | | | | | |
--------------------------------------------------------------------------------
| Total | 393.6 | 377.0 | 306.3 | 428.9 | 368.7 | 431.6 | 442.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operat | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| ing | 2010 | 2010 | 010 | 2009 | 2009 | 2009 | 2009 |
| profit | | | | | | | |
| (EBIT) | | | | | | | |
| by | | | | | | | |
| Busine | | | | | | | |
| ss | | | | | | | |
| Area | | | | | | | |
--------------------------------------------------------------------------------
| exclud | | | | | | | |
| ing | | | | | | | |
| restru | | | | | | | |
| cturin | | | | | | | |
| g | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Servic | 14.6 | 16.0 | 9.8 | 15.8 | 13.9 | 15.6 | 15.7 |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Equipm | 22.0 | 11.9 | 6.0 | 15.4 | 14.0 | 20.5 | 26.8 |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| Group | -2.3 | -4.5 | -4.3 | -3.9 | -3.9 | -5.4 | -5.7 |
| costs | | | | | | | |
| and | | | | | | | |
| elimin | | | | | | | |
| ations | | | | | | | |
--------------------------------------------------------------------------------
| Total | 34.3 | 23.4 | 11.6 | 27.3 | 24.0 | 30.7 | 36.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operat | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| ing | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| margin | | | | | | | |
| , | | | | | | | |
| (EBIT | | | | | | | |
| %) by | | | | | | | |
| Busine | | | | | | | |
| ss | | | | | | | |
| Area | | | | | | | |
| exclud | | | | | | | |
| ing | | | | | | | |
| restru | | | | | | | |
| cturin | | | | | | | |
| g | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Servic | 8.4 % | 9.1 % | 6.6 % | 9.3 % | 8.8 % | 9.2 % | 9.3 % |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Equipm | 8.7 % | 5.4 % | 3.3 % | 5.4 % | 6.0 % | 7.0 % | 8.8 % |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| Group | 8.7 % | 6.2 % | 3.8 % | 6.4 % | 6.5 % | 7.1 % | 8.3 % |
| EBIT % | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Person | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| nel by | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| Busine | | | | | | | |
| ss | | | | | | | |
| Area | | | | | | | |
--------------------------------------------------------------------------------
| (at | | | | | | | |
| the | | | | | | | |
| end of | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
| ) | | | | | | | |
--------------------------------------------------------------------------------
| Servic | 5,125 | 4,938 | 4,926 | 4,991 | 5,033 | 5,210 | 5,494 |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Equipm | 4,626 | 4,583 | 4,586 | 4,742 | 4,334 | 4,429 | 4,317 |
| ent | | | | | | | |
--------------------------------------------------------------------------------
| Group | 44 | 49 | 50 | 49 | 52 | 52 | 55 |
| staff | | | | | | | |
--------------------------------------------------------------------------------
| Total | 9,795 | 9,570 | 9,562 | 9,782 | 9,419 | 9,691 | 9,866 |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Sales | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| by | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| market | | | | | | | |
--------------------------------------------------------------------------------
| Europe | 202.1 | 189.9 | 173.0 | 244.2 | 201.0 | 236.3 | 246.4 |
| -Middl | | | | | | | |
| e | | | | | | | |
| East-A | | | | | | | |
| frica | | | | | | | |
| (EMEA) | | | | | | | |
--------------------------------------------------------------------------------
| Americ | 122.0 | 123.8 | 86.6 | 113.7 | 111.9 | 121.2 | 132.7 |
| as | | | | | | | |
| (AME) | | | | | | | |
--------------------------------------------------------------------------------
| Asia-P | 69.5 | 63.3 | 46.7 | 71.1 | 55.7 | 74.0 | 63.0 |
| acific | | | | | | | |
| (APAC) | | | | | | | |
--------------------------------------------------------------------------------
| Total | 393.6 | 377.0 | 306.3 | 428.9 | 368.7 | 431.6 | 442.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Person | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| nel by | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| region | | | | | | | |
| (at | | | | | | | |
| the | | | | | | | |
| end of | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
| ) | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Europe | 5,562 | 5,431 | 5,466 | 5,533 | 5,646 | 5,778 | 5,626 |
| -Middl | | | | | | | |
| e | | | | | | | |
| East-A | | | | | | | |
| frica | | | | | | | |
| (EMEA) | | | | | | | |
--------------------------------------------------------------------------------
| Americ | 2,217 | 2,170 | 2,171 | 2,236 | 2,298 | 2,410 | 2,654 |
| as | | | | | | | |
| (AME) | | | | | | | |
--------------------------------------------------------------------------------
| Asia-P | 2,016 | 1,969 | 1,925 | 2,013 | 1,475 | 1,503 | 1,586 |
| acific | | | | | | | |
| (APAC) | | | | | | | |
--------------------------------------------------------------------------------
| Total | 9,795 | 9,570 | 9,562 | 9,782 | 9,419 | 9,691 | 9,866 |
--------------------------------------------------------------------------------
Analyst and press briefing
An analyst and press conference will be held at G.W. Sundmans' Auditorium
(address Eteläranta 16) at 12.00 p.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 12.00 p.m. at www.konecranes.com.
Please see the stock exchange release of October 7, 2010, for the conference
call details.
Next report
Konecranes' Financial Statements Bulletin 2010 will be published on February 3,
2011.
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 2009, Group sales totaled EUR 1,671 million. The Group has 9,800
employees, at 545 locations in 43 countries. Konecranes is listed on NASDAQ OMX
Helsinki Ltd (symbol: KCR1V).
DISTRIBUTION
Media
NASDAQ OMX Helsinki
www.konecranes.com
