SOLID PERFORMANCE IN A TOUGH MARKET
KONECRANES PLC FINANCIAL STATEMENTS BULLETIN February 4, 2010 at 9:30 a.m.
SOLID PERFORMANCE IN A TOUGH MARKET
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier
FOURTH QUARTER HIGHLIGHTS
- Order intake EUR 361.1 million (409.6), -11.8 percent: Service -23.5 percent,
Standard Lifting -24.0 percent, Heavy Lifting +12.9 percent.
- Order book at year-end was EUR 607.0 million (836.3), -27.4 percent compared
with a year before.
- Sales EUR 428.9 million (650.4), -34.1 percent: Service -22.7 percent,
Standard Lifting -38.5 percent, Heavy Lifting -41.4 percent.
- Operating profit before restructuring costs totaled EUR 27.3 million (76.5)
and 6.4 percent (11.8) of sales.
- Restructuring costs in the fourth quarter totaled EUR 5.1 million.
- Operating profit, including restructuring costs, EUR 22.2 million (76.5), 5.2
percent of sales (11.8).
- Net cash flow from operating activities EUR 89.9 million (33.5).
- Strong cash flow resulted in net cash of EUR 77.7 million (net debt of 11.3)
and gearing of -19.1 percent (2.8).
FULL YEAR 2009 HIGHLIGHTS
- Orders received EUR 1,348.9 million (2,067.1), -34.7 percent: Service -24.3
percent, Standard Lifting -39.8 percent, Heavy Lifting -38.0 percent.
- Sales EUR 1,671.3 million (2,102.5), -20.5 percent: Service -11.5 percent,
Standard Lifting -21.9 percent, Heavy Lifting -27.3 percent.
- Operating profit before restructuring costs totaled EUR 118.8 million (248.7),
7.1 percent (11.8) of sales.
- Restructuring costs in 2009 totaled EUR 20.9 million.
- Operating profit, including restructuring costs, EUR 97.9 million (248.7), 5.9
percent of sales (11.8).
- Net cash flow from operating activities EUR 223.0 million (107.1).
- Profit before taxes EUR 88.6 million (236.2).
- Earnings per share (diluted) EUR 1.08 (2.82).
- Dividend proposed by Board of Directors is EUR 0.90 (0.90) per share.
FUTURE PROSPECTS
Despite a slight pick-up in industrial output in the second half of 2009,
Konecranes expects the uncertainty to continue, with no credible signs of market
recovery visible. The demand for maintenance services is expected to remain
stable or to increase gradually should capacity utilization within customer
industries continue to improve. The demand for new equipment is expected to
remain generally on a low level, and to suffer from overcapacity at customers.
Price competition is likely to remain. A high degree of fluctuation between
quarters may continue due to the timing of orders.
The year 2010 began with a thinner order book than the previous year. Our
forecast is that sales in 2010 will be lower than in 2009. We expect the
operating profit in 2010 to be lower than in 2009 before restructuring costs.
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| KEY FIGURES | Fourth quarter | January - December |
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| | 2009 | 2008 | % | 2009 | 2008 | % |
--------------------------------------------------------------------------------
| Orders received, | 361.1 | 409.6 | -11.8 | 1,348.9 | 2,067.1 | -34.7 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Order book at end | 607.0 | 836.3 | -27.4 | 607.0 | 836.3 | -27.4 |
| of period, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Sales total, MEUR | 428.9 | 650.4 | -34.1 | 1,671.3 | 2,102.5 | -20.5 |
--------------------------------------------------------------------------------
| Operating profit | 27.3 | 76.5 | -64.3 | 118.8 | 248.7 | -52.2 |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 6.4 % | 11.8 % | | 7.1 % | 11.8 % | |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 22.2 | 76.5 | -71.0 | 97.9 | 248.7 | -60.6 |
| including | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 5.2 % | 11.8 % | | 5.9 % | 11.8 % | |
| including | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 18.6 | 73.8 | -74.8 | 88.6 | 236.2 | -62.5 |
| taxes, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Net profit for the | 13.4 | 50.0 | -73.3 | 62.5 | 166.6 | -62.5 |
| period, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.23 | 0.85 | -72.6 | 1.08 | 2.83 | -61.9 |
| share, basic, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.23 | 0.85 | -72.5 | 1.08 | 2.82 | -61.8 |
| share, diluted, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Gearing, % | | | | -19.1 % | 2.8 % | |
--------------------------------------------------------------------------------
| Return on capital | | | | 19.3 % | 56.3 % | |
| employed % | | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | 9,811 | 9,222 | |
| personnel during | | | | | | |
| the period | | | | | | |
--------------------------------------------------------------------------------
President and CEO Pekka Lundmark:
“2009 proved out to be at least as challenging as expected. Capacity utilization
at our key customer segments remained weak throughout the year, and most
customers continued to be cautious in their investment decisions. The demand for
services was also affected, since the equipment we maintain was in many cases
used much less than before. Our order intake dropped 34.7 percent from the
record level seen in 2008. Since we started the year with a strong order book,
sales dropped less than orders, 20.5 percent, to EUR 1,671.3 million.
In this situation, it was necessary to reduce our capacity, while continuing our
investments for the future. A lot of the complexity that our recent acquisitions
had created in our organization was removed, resulting in a more streamlined
structure for future growth. As a part of this process, we announced the
shutdown of three factories and a reduction of more than 1,600 jobs. We also
made progress in developing our procurement structure, improving our purchase
price position in relation to market prices for certain components, raw
materials, and services. These measures helped us maintain our financial result
on a reasonable level in spite of lower volumes and some price pressure caused
by overcapacity in the industry. We delivered a 7.1 percent operating margin
before restructuring costs and a 19.3 percent return on capital employed, which
was a successful defense in difficult market conditions.
Looking to the future, there are some positive signs that give cause for
cautious optimism. Industrial capacity utilization rates started to recover
during the second half of 2009 and we have seen several customers start planning
capital expenditure projects again. These early signs suggest that the demand
for lifting equipment and services could begin growing again during 2010.
However, due to the relatively late cyclical nature of most of our business
segments, it is still too early to conclude that a major recovery could be
imminent.
We will be in a strong position once the market recovers. As I mentioned
earlier, we have continued to invest throughout the recession. While reducing
manufacturing capacity, we have invested in our remaining factories. We have
also increased our investment in training. Product development has proceeded at
full speed, and we have added new products and services to our offering. We made
a total of ten acquisitions during 2009. Even after all these investments, we
ended the year with a debt-free balance sheet, with a net cash position of EUR
77.7 million. This puts us in a good position when the consolidation of our
fragmented industry continues.”
REPORT OF THE BOARD OF DIRECTORS 2009
MARKET REVIEW
The steep recession that hit the world economy in the last quarter of 2008
continued throughout 2009 and made the year a challenging one, resulting in a
weak market for the material handling industry. There were some variations
between regions and different product segments, but virtually half of the
equipment market disappeared compared to 2008. Few significant differences
occurred in demand between regions in 2009, with the exception of China, where
the continued economic growth boosted by major government stimulus packages
resulted in a higher level of investment.
The slow economic conditions affected demand for new equipment across customer
segments. Demand from the manufacturing and process industries remained weak
throughout the year, while investment activity in the energy sector remained
more stable. Investments in Konecranes' two other key customer industries, ports
and shipbuilding, were significantly affected by the decline in shipping
volumes. Towards the end of 2009, activity revived somewhat in the
waste-to-energy, steel, petrochemical and mining sectors. Weakened demand
resulted in overcapacity in the crane manufacturing industry, and led to intense
price competition.
The service market also suffered, but to a lesser extent than equipment demand.
Customers devoted increasing attention in 2009 to cost-cutting measures and
improving their efficiency. This was reflected in a growing interest in
outsourcing service operations, although lower industrial capacity utilization
reduced the total amount of service and maintenance work carried out.
Outsourcing continues to be concentrated in industrialized countries, while
customers also in developing markets have started to show a growing interest in
what outsourcing of service operations can offer.
Input costs trended down during 2009. Steel prices were at a lower level in 2009
compared with 2008 and there was deflation in other procurement categories as
well. There were signs of increasing cost pressures on steel, copper and sea
freight towards the end of the year, but this did not have a material impact on
paid costs. The US dollar depreciated against the euro towards the end of 2009.
Global macro data improved towards the end of 2009. Capacity utilization rates
in manufacturing industries started slowly to improve as production rates
gradually picked up. Surveys of purchasing managers from China to Europe and the
US in the final month of 2009 gave better results than expected.
Note: Unless otherwise stated, the figures in brackets in the sections below
refer to the same period in the previous year.
ORDERS RECEIVED
In 2009 orders received declined by 34.7 percent to EUR 1,348.9 million
(2,067.1). The demand for equipment declined more than for service. The order
intake declined by 39.8 percent in Standard Lifting and 38.0 percent in Heavy
Lifting, whereas the decline in Service was 24.3 percent. New orders declined
almost equally in AME and EMEA, and both areas were faced with clearly lower
demand for industrial and process cranes in particular. The order decline was
somewhat smaller in APAC, where all business held up better than in AME and
EMEA. Process crane orders grew in APAC.
Fourth-quarter order intake declined by 11.8 percent from a year earlier but
increased by 17.1 percent from the third quarter to EUR 361.1 million (409.6).
Development was positive in Heavy Lifting, where orders grew by 12.9 percent
from a year ago and by 42.6 percent compared to the third quarter. The
improvement was boosted by a limited number of large single orders. Standard
Lifting orders recovered from the unsatisfactory third quarter, but Service
orders remained sequentially flat. Group's new orders developed positively in
EMEA and APAC, but negatively in AME compared with the third quarter.
Orders from emerging markets accounted for more than 30 percent of total orders
in 2009, but for less than 30 percent in the fourth quarter.
ORDER BOOK
The value of the order book at year-end 2009 totaled EUR 607.0 million (836.3),
which is 27.4 percent lower than at end 2008. The order book decreased by 4.9
percent from the third quarter when it stood at EUR 638.4 million. Order
cancellations remained low throughout 2009. The breakdown by Business Area for
the year-end order book was as follows: Service EUR 75.9 million (12 percent),
Standard Lifting EUR 192.1 million (31 percent) and Heavy Lifting EUR 353.8
million (57 percent).
SALES
Group sales in full year 2009 decreased by 20.5 percent and totaled EUR 1,671.3
million (2,102.5). Sales in Service decreased by 11.5 percent, in Standard
Lifting by 21.9 percent and in Heavy Lifting by 27.3 percent.
Fourth-quarter sales fell by 34.1 percent from the corresponding period in 2008
to EUR 428.9 million (650.4). Service declined by 22.7 percent, Standard Lifting
by 38.5 percent and Heavy Lifting by 41.4 percent.
In 2009, the regional breakdown was as follows: EMEA 56 (57), Americas 29 (28)
and APAC 16 (14) percent.
Net sales by region, MEUR
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | Change % |
| | 2009 | 2008 | percent | 2009 | 2008 | percent | at |
| | | | | | | | comparable |
| | | | | | | | currency |
| | | | | | | | rates |
--------------------------------------------------------------------------------
| EMEA | 244.2 | 380.3 | -35.8 | 928.0 | 1,207.5 | -23.2 | -20.5 |
--------------------------------------------------------------------------------
| AME | 113.7 | 178.1 | -36.2 | 479.5 | 591.7 | -19.0 | -22.0 |
--------------------------------------------------------------------------------
| APAC | 71.1 | 92.0 | -22.8 | 263.8 | 303.3 | -13.0 | -14.6 |
--------------------------------------------------------------------------------
| Total | 428.9 | 650.4 | -34.1 | 1,671.3 | 2,102.5 | -20.5 | -20.1 |
--------------------------------------------------------------------------------
CURRENCY RATE EFFECT
In a year-on-year comparison, currency rates did not have a material effect on
orders or sales in January-December. The order intake declined by 34.7 percent
as reported and by 34.1 percent at comparable currency rates. Sales declined by
20.5 percent as reported and by 20.1 percent at comparable currency rates.
Of the regions, the currency rate impact on sales in EMEA was negative, with the
reported decrease being 23.2 percent compared with a decrease at comparable
currency rates of 20.5 percent. The impact was positive in the Americas region,
where reported sales declined 19.0 percent and 22.0 percent at comparable
currency rates. The corresponding figures in APAC were -13.0 percent and -14.6
percent.
In January-December currency rates had a slight positive impact on the Group's
operating profit compared with the same period a year earlier.
FINANCIAL RESULT
The consolidated operating profit in full year 2009 totaled EUR 97.9 million
(248.7). The operating profit includes restructuring costs of EUR 20.9 million.
The consolidated operating margin declined to 5.9 percent (11.8). The operating
margin in Service declined to 10.6 percent (14.1), in Standard Lifting to 7.6
percent (16.8) and in Heavy Lifting to 7.1 percent (8.1). Procurement cost
savings and adjustment of production capacity largely offset product price
pressure.
The consolidated operating profit in the fourth quarter totaled EUR 22.2 million
(76.5), including restructuring costs of EUR 5.1 million. The consolidated
operating margin in the fourth quarter declined to 5.2 percent (11.8). The
operating margin declined in Service to 10.5 percent (15.1) and in Standard
Lifting to 7.2 percent (15.7) but increased in Heavy Lifting to 9.4 percent
(8.6). The implemented cost savings lowered fixed costs towards the year-end,
which partly offset the under absorption of the cost base.
In 2009 depreciation and impairments totaled EUR 32.5 million (26.6). Goodwill
write-downs totaled EUR 3.7 million (0.2), and they were booked in the fourth
quarter. The write-downs related mainly to Standard Lifting.
In 2009 the share of the result of associated companies and joint ventures was
EUR -2.2 million (-3.9).
Net financial expenses totaled EUR 7.1 million (8.6). Net interest expense
accounted for EUR 2.2 million (5.9) of this, and the remainder was mainly
attributable to unrealized exchange rate differences relating to the hedging of
future cash flows that are not included in hedge accounting.
Profit before taxes was EUR 88.6 million (236.2).
Income taxes were EUR 26.1 million (69.6). The Group's effective tax rate was
29.5 percent (29.5).
Net profit was EUR 62.5 million (166.6).
Basic earnings per share were EUR 1.08 (2.83) and diluted earnings per share
were EUR 1.08 (2.82).
Return on capital employed was 19.3 percent (56.3) and return on equity 15.5
percent (48.9).
BALANCE SHEET
The year-end 2009 consolidated balance sheet amounted to EUR 1,060.4 million
(1,205.4). Total equity at the end of the report period was EUR 407.1 million
(400.7). Total equity attributable to equity holders of the parent company at
year-end 2009 was EUR 402.5 million (398.8) or EUR 6.84 per share (6.75).
Net working capital at year-end 2009 totaled EUR 138.8 million, which was EUR
72.3 million less than at the end of the third quarter and EUR 125.0 million
less than at year-end 2008. The decrease in receivables and inventories more
than offset the decrease in advance payments. In the fourth quarter inventory
turnover improved in particular.
CASH FLOW AND FINANCING
Net cash flow from operating activities in full year 2009 was EUR 223.0 million
(107.1), representing EUR 3.79 per share (1.82). In the fourth quarter, net cash
flow from operating activities was EUR 89.9 million (33.5). Cash flow was
boosted by the successful release of net working capital both in full year 2009
and in the fourth quarter.
Due to the strong cash flow, interest-bearing net debt was EUR -77.7 million at
the end of 2009, compared to EUR 11.3 million at end 2008. Solidity was 45.1
percent (39.9) and gearing -19.1 percent (2.8).
The Group's liquidity remained healthy. At the end of the fourth quarter, cash
and cash equivalents amounted to EUR 137.5 million (100.9). None of the Group's
EUR 200 million committed back-up financing facility was in use at the end of
the period. In the fourth quarter some Group companies in Finland raised EUR
26.5 million by borrowing back funds from the employment pension insurance
company used in Finland.
Konecranes paid its shareholders dividends amounting to EUR 53.3 million or EUR
0.90 per share in March 2009.
CAPITAL EXPENDITURE
In 2009, capital expenditure excluding acquisitions amounted to EUR 25.7 million
(22.3). This consisted mainly of replacement or capacity expansion investments
in machines, equipment and information technology.
Capital expenditure including acquisitions was EUR 55.8 million (41.9).
Fourth quarter capital expenditure excluding acquisitions was EUR 11.8 million
(3.4) and including acquisitions EUR 30.7 million (6.7).
ACQUISITIONS
Capital expenditure on acquisitions was EUR 30.1 million (19.6). During
January-December, Konecranes made ten acquisitions, and sold one minor operation
in Austria. The net assets of the acquired companies were recorded at EUR 13.4
million and goodwill of EUR 16.7 million was booked from the acquisitions.
During the fourth quarter EUR 18.9 million was spent on four acquisitions.
Acquisitions contributed about 1 percentage point to sales in the full year and
in the fourth quarter of 2009. Four of the acquisitions related to machine tools
service.
In July 2009, Konecranes moved into a new business segment by making two
acquisitions for load-handling solutions with aluminum rail systems and
manipulators. Konecranes increased its ownership in the Austrian company
Konecranes Lifting Systems GmbH (formerly ACS Technologies GmbH) from 49.9% to
80% and at the same time acquired the assets of German company Knight Europe
GmbH & Co. KG. The two acquired companies had combined net sales in 2008 of
approximately EUR 15 million and they employed about 100 people.
Konecranes' acquisition of a majority holding in Jiangsu Three Horses Crane
Manufacture Co. Ltd. (SANMA), one of the leading hoist and crane manufacturers
in China, was finalized in November 2009. Through a combined share purchase and
share issue, Konecranes now owns 65% of SANMA. The remaining 35% of the shares
are held by the former owners. The company's net sales were approximately EUR 18
million in 2008 and it has more than 500 employees.
PERSONNEL
The total number of the Group's personnel at year-end 2008, including all the
temporary and rented work force, was approximately 10,500. During 2009,
decisions were taken to reduce the number of employees by more than 1,600, and
almost 1,500 people left the company during the year. The number of personnel
increased by almost 1,100 through acquisitions. At year-end 2009, the total
headcount including the temporary and rented work force was approximately
10,100.
In 2009 the Group employed an average of 9,811 people (9,222). On 31 December,
the headcount was 9,782 (9,904). At year-end 2009 the number of personnel by
Business Area was as follows: Service 4,891 employees (5,372), Standard Lifting
3,012 employees (2,808), Heavy Lifting 1,603 employees (1,439) and Group staff
276 (285). The Group had 5,533 employees (5,658) working in EMEA, 2,236 (2,619)
in the Americas and 2,013 (1,627) in the APAC region.
In 2009, the Group's personnel expenses totaled EUR 452.4 million (463.2).
An employee satisfaction survey was carried out for the third time in 2009. The
results showed an improvement in all the main areas compared to the previous
surveys, except in the image of the employer. However, despite a clear
deterioration in the results in this area, the image of the employer is still
very positive compared to benchmark data. According to the feedback received,
people feel that cooperation and conditions for working have improved compared
to previous years. In particular, the quality of personnel training was rated
higher than in previous years.
BUSINESS AREAS
Service
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| | 2009 | 2008 | percen | 2009 | 2008 | percent |
| | | | t | | | |
--------------------------------------------------------------------------------
| Orders received, | 121.8 | 159.3 | -23.5 | 498.4 | 658.2 | -24.3 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Order book, MEUR | 75.9 | 117.3 | -35.3 | 75.9 | 117.3 | -35.3 |
--------------------------------------------------------------------------------
| Sales, MEUR | 170.5 | 220.6 | -22.7 | 667.2 | 754.3 | -11.5 |
--------------------------------------------------------------------------------
| Operating profit | 19.4 | 33.3 | -42.0 | 73.5 | 106.2 | -30.8 |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 11.4 % | 15.1 % | | 11.0 % | 14.1 % | |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 17.8 | 33.3 | -46.5 | 70.8 | 106.2 | -33.4 |
| including | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 10.5 % | 15.1 % | | 10.6 % | 14.1 % | |
| including | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Personnel | 4,891 | 5,372 | -9.0 | 4,891 | 5,372 | -9.0 |
--------------------------------------------------------------------------------
Full year 2009 orders received totaled EUR 498.4 million (658.2), showing a
decline of 24.3 percent. Orders declined in all service business units. Order
intake held up better in APAC than in the other geographic areas. The order book
decreased to EUR 75.9 million (117.3) at year-end, representing a decline of
35.3 percent. Sales fell by 11.5 percent to EUR 667.2 million (754.3). Operating
profit before restructuring costs of EUR 2.7 million was EUR 73.5 million
(106.2) and the operating margin 11.0 percent (14.1). Operating profit after
restructuring costs was EUR 70.8 million, 10.6 percent of sales. Although
Service successfully defended prices, profitability was negatively affected by
lower volumes and the change in product mix, with lower sales of parts and
higher labor content.
Fourth quarter order intake fell by 23.5 percent from the previous year and
totaled EUR 121.8 million (159.3). Sequentially, the order intake remained flat.
The parts business showed a slight increase, but the overall performance was
held back by the other operations. AME underperformed the other regions.
Fourth-quarter sales totaled EUR 170.5 million (220.6), representing a
year-over-year decline of 22.7 percent. Fourth-quarter operating profit before
EUR 1.5 million restructuring costs was EUR 19.4 million (33.3), and the
operating margin 11.4 percent (15.1). Operating profit after restructuring costs
was EUR 17.8 million and 10.5 percent of sales.
The number of items of equipment in the contract base increased slightly, but
the value decreased. On a positive note, Konecranes continued to gain new
customers at a stable rate despite the slow economic conditions. On the other
hand, contract cancellations increased due to factory shutdowns, and the value
was affected because new contracts were smaller than the lost contracts and
because contract sizes were scaled down due to lower capacity utilization among
the customers. At year-end 2009 the total number of items of equipment included
in the maintenance contract base increased to 362,996 from 359,811 a year
before. The annual value of the contract base decreased to EUR 122.3 million
from EUR 124.1 million at year-end 2008.
The number of service technicians at year-end 2009 was 3,222, which is 12.5
percent less than at year-end 2008.
Standard Lifting
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| | 2009 | 2008 | percent | 2009 | 2008 | percent |
--------------------------------------------------------------------------------
| Orders received, | 128.4 | 168.9 | -24.0 | 517.0 | 859.0 | -39.8 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Order book, MEUR | 192.1 | 327.9 | -41.4 | 192.1 | 327.9 | -41.4 |
--------------------------------------------------------------------------------
| Sales, MEUR | 157.6 | 256.4 | -38.5 | 652.2 | 835.4 | -21.9 |
--------------------------------------------------------------------------------
| Operating profit | 14.4 | 40.3 | -64.2 | 65.3 | 140.0 | -53.4 |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 9.2 % | 15.7 % | | 10.0 % | 16.8 % | |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 11.3 | 40.3 | -72.0 | 49.7 | 140.0 | -64.5 |
| including | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 7.2 % | 15.7 % | | 7.6 % | 16.8 % | |
| including | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Personnel | 3,012 | 2,808 | 7.3 | 3,012 | 2,808 | 7.3 |
--------------------------------------------------------------------------------
Full year 2009 orders received decreased by 39.8 percent and totaled EUR 517.0
million (859.0). Orders for industrial cranes decreased more than orders for
components. The order intake declined clearly in all regions, but somewhat less
in APAC than elsewhere. The order book decreased to EUR 192.1 million (327.9) at
year-end 2009, representing a decline of 41.4 percent. Sales fell by 21.9
percent to EUR 652.2 million (835.4). Operating profit before restructuring
costs of EUR 15.6 million was EUR 65.3 million (140.0) and the operating margin
10.0 percent (16.8). Operating profit after restructuring costs was EUR 49.7
million and 7.6 percent of sales. Profitability was negatively affected by lower
volumes and intense price competition.
Order intake in the fourth quarter decreased by 24.0 percent and totaled EUR
128.4 million (168.9). New orders increased 11.9 percent compared to the third
quarter. The moderate sequential growth in orders following the summer months
was led by components in all geographic areas. Fourth-quarter sales totaled EUR
157.6 million (256.4), representing a 38.5 percent decline. During the quarter
the sales mix was tilted towards crane deliveries. Fourth-quarter operating
profit before EUR 3.1 million restructuring costs was EUR 14.4 million (40.3),
and the operating margin 9.2 percent (15.7). Operating profit after
restructuring costs was EUR 11.3 million and 7.2 percent of sales.
Heavy Lifting
--------------------------------------------------------------------------------
| | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| | 2009 | 2008 | percent | 2009 | 2008 | percent |
--------------------------------------------------------------------------------
| Orders received, | 131.4 | 116.4 | 12.9 | 425.1 | 686.0 | -38.0 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Order book, MEUR | 353.8 | 420.2 | -15.8 | 353.8 | 420.2 | -15.8 |
--------------------------------------------------------------------------------
| Sales, MEUR | 128.8 | 219.8 | -41.4 | 479.1 | 659.4 | -27.3 |
--------------------------------------------------------------------------------
| Operating profit | 12.6 | 18.8 | -33.0 | 36.7 | 53.6 | -31.6 |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 9.8 % | 8.6 % | | 7.7 % | 8.1 % | |
| excluding | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 12.1 | 18.8 | -35.4 | 34.0 | 53.6 | -36.6 |
| including | | | | | | |
| restructuring | | | | | | |
| costs, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 9.4 % | 8.6 % | | 7.1 % | 8.1 % | |
| including | | | | | | |
| restructuring | | | | | | |
| costs, % | | | | | | |
--------------------------------------------------------------------------------
| Personnel | 1,603 | 1,439 | 11.4 | 1,603 | 1,439 | 11.4 |
--------------------------------------------------------------------------------
Full year 2009 orders received totaled EUR 425.1 million (686.0), showing a
decline of 38.0 percent. Order intake fell clearly for all product categories
globally. The fall in orders was somewhat smaller in the port equipment business
due to a few single large orders. Orders received for process cranes declined
sharply in AME and EMEA, but increased in APAC. The order book decreased to EUR
353.8 million (420.2) at year-end 2009, representing a decline of 15.8 percent.
Sales decreased by 27.3 percent to EUR 479.1 million (659.4). The decline in
sales was attributable to all product segments, while port equipment and lift
trucks declined the most. Operating profit before restructuring costs of EUR 2.7
million was EUR 36.7 million (53.6) and the operating margin 7.7 percent (8.1).
Operating profit after restructuring costs was EUR 34.0 million and 7.1 percent
of sales. Profitability was negatively affected by substantially lower volumes
especially in the ports business unit. High-quality project execution helped to
maintain good profitability in the process cranes unit year-on-year.
The fourth quarter order intake of EUR 131.4 million increased by 42.6 percent
from the third quarter and by 12.9 percent from the fourth quarter of 2008. All
businesses contributed to the positive performance. Port equipment and lift
trucks were boosted by a limited number of single large orders. Fourth-quarter
sales totaled EUR 128.8 million (219.8), representing a fall of 41.4 percent.
Fourth-quarter operating profit before EUR 0.5 million restructuring costs was
EUR 12.6 million (18.8), and the operating margin 9.8 percent (8.6). Operating
profit after restructuring costs was EUR 12.1 million and 9.4 percent of sales.
Profitability was supported by successful project execution and the cost savings
measures carried out.
GROUP OVERHEADS
Unallocated Group overhead costs in 2009 were EUR 54.6 million (47.2),
representing 3.3 percent of sales (2.2). The increase is mainly due to
investments in information systems, procurement and R&D.
CHANGES IN GROUP MANAGEMENT
Konecranes announced in May that it would shift to a two-tiered management
structure as of September 1, 2009. The new structure consists of the Group
Executive Board and the Extended Management Team.
The members of Konecranes' Group Executive Board are: Pekka Lundmark, President
and Chief Executive Officer, and Chairman of the Group Executive Board; Hannu
Rusanen, Executive Vice President and Head of Business Area Service; Mikko
Uhari, Executive Vice President and Head of Business Area Equipment; Harry
Ollila, Executive Vice President and Head of Market Operations; Teo Ottola,
Chief Financial Officer; Pekka Lettijeff, Chief Procurement Officer and Ari
Kiviniitty, Chief Technology Officer.
The Extended Management Team comprises the members of the Group Executive Board;
the Senior Vice Presidents of the regional organizations; the Vice President,
General Counsel; the Vice President, Human Resources; the Vice President,
Marketing & Communications; and the Chief Information Officer.
ADMINISTRATION
Konecranes' Annual General Meeting was held on March 12, 2009. The meeting
approved the company's annual accounts for the fiscal year 2008 and discharged
the members of the Board and the Managing Director from liability. The AGM
approved the Board's proposal to pay a dividend of EUR 0.90 per share from the
distributable equity of the parent company. In addition the AGM confirmed the
annual compensation to the Board Members and decided to amend Section 9 of the
Articles of Association. The AGM also resolved to issue stock options to the key
personnel of the Company and its subsidiaries.
The AGM approved the proposal of the Nomination and Compensation Committee that
eight (8) members of the Board of Directors be elected. Board members Björn
Savén and Timo Poranen had announced that they were not available for
re-election. Svante Adde, Kim Gran, Stig Gustavson, Matti Kavetvuo, Malin
Persson and Mikael Silvennoinen were re-elected. Tomas Billing, President of
Nordstjernan AB, and Tapani Järvinen, the then President and CEO of Outotec Oyj,
were elected as new members.
At its first meeting held after the Annual General Meeting, the Board of
Directors elected Stig Gustavson to continue as Chairman. Svante Adde was
elected Chairman of the Audit Committee, and Kim Gran, Tapani Järvinen and
Mikael Silvennoinen as Committee members. Matti Kavetvuo was elected Chairman of
the Nomination and Compensation Committee, and Tomas Billing, Stig Gustavson and
Malin Persson were elected as Committee members.
The AGM confirmed that Ernst & Young Oy will continue as the Company's external
auditor. The decisions are explained in more detail in the release covering the
resolutions of the AGM, which is available on the company's website at
www.konecranes.com.
Konecranes applies the Finnish Corporate Governance Code 2008 for listed
companies. The Corporate Governance Statement can be reviewed at the corporate
website of Konecranes, www.konecranes.com.
SHARE CAPITAL AND SHARES
The company's registered share capital at year-end 2009 totaled EUR 30.1
million. At year-end 2009, the number of shares including treasury shares and
the shares owned by KCR Management Oy totaled 61,872,920. At year-end 2009,
Konecranes held a total of 2,542,600 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 48.5 million.
In May, the Konecranes Group's executive management established a company named
KCR Management Oy, whose entire share capital is owned by the management. As
part of the arrangement, the Board of Directors of Konecranes Plc has resolved
to grant KCR Management Oy an interest-bearing loan of a maximum of
approximately EUR 7.1 million to finance the acquisition of the Company's
shares. The Board of Directors sees this as a way to increase management
commitment to long term shareholder value. Shares owned by KCR Management Oy
totaled 517,696 at the end of the period. Konecranes has consolidated KCR
Management into the Group's balance sheet, which has decreased its equity by EUR
7.1 million.
The EGM held on August 31, 2009 authorized 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 12,000,000 shares, which corresponds to approximately 19.4 % of all the
shares in the Company. The authorization is effective until the end of the next
Annual General Meeting, however no longer than until 11 September 2010. The
Board of Directors did not exercise this authorization to issue shares during
2009.
The EGM authorized the Board of Directors to decide on the repurchase and/or on
the acceptance as pledge of 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 % of all the shares in the
Company. However, the Company together with its subsidiaries may not at any
moment own and/or hold as pledge more than 10 percent of all the shares in the
Company. Only the unrestricted equity of the Company can be used to repurchase
own shares on the basis of the authorization. The authorization is effective
until the end of the next Annual General Meeting, however no longer than until
11 September 2010. The Board of Directors did not exercise this authorization to
buy own shares during 2009. Konecranes has accepted own shares as pledge for the
loan of EUR 7.1 million it has granted to KCR Management Oy. The amount of
pledged shares totaled 517,696 at year-end 2009.
The EGM authorized 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 % 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 11 September 2010. The
Board of Directors did not exercise this authorization during 2009.
The authorizations are explained in more detail in the release covering the
resolutions of the EGM, which is available on the company's website at
www.konecranes.com.
SHARES SUBSCRIBED UNDER STOCK OPTION RIGHTS
Pursuant to Konecranes' stock option plans, 260,600 new shares were subscribed
and registered in the Finnish Trade Register in 2009, and 23,200 of these were
during the fourth quarter. As the result of these subscriptions, the total
number of Konecranes shares (including treasury shares and the shares owned by
KCR Management Oy) increased to 61,872,920 shares.
The stock options issued under Konecranes Plc's ongoing stock option plans
(2001, 2007 and 2009) at year-end 2009 entitle holders to subscribe a total of
2,773,400 shares, which would increase the total number of Konecranes shares
(including treasury shares and the shares owned by KCR Management Oy) to
64,646,320. The option programs include approximately 180 key persons.
All shares carry one vote per share and equal rights to dividends.
The terms and conditions of the stock option programs can be seen on Konecranes'
website at www.konecranes.com.
MARKET CAPITALIZATION AND TRADING VOLUME
The closing price for Konecranes Plc's shares on December 31, 2009 was EUR
19.08. The volume-weighted average share price in 2009 was EUR 16.66, the
highest price being EUR 22.04 in September and the lowest EUR 10.61 in January.
In 2009, the trading volume totaled about 113 million Konecranes Plc shares,
corresponding to a turnover of approximately EUR 1,883 million and a turnover
rate of 193 percent of the total number of outstanding shares. The daily average
trading volume was 451,273 shares, representing a daily average turnover of EUR
7.5 million.
On December 31, 2009, the total market capitalization of Konecranes Plc's shares
was EUR 1,180.5 million including the treasury shares held by the company, and
the shares held by KCR Management Oy. The market capitalization was EUR 1,122.1
million excluding the treasury shares and the shares held by KCR Management Oy.
FLAGGING NOTIFICATIONS
On September 18, 2009, Ilmarinen Mutual Pension Insurance Company informed
Konecranes that their holding in Konecranes had fallen below 5 percent. The
total number of shares owned by Ilmarinen was 3,176,689 on September 18, 2009,
or 4.92 percent of Konecranes' shares.
On December 4, 2009 BlackRock, Inc. informed Konecranes that their holding in
Konecranes had exceeded 5 percent. The total number of shares owned by BlackRock
was 4,458,836 on December 4, 2009, or 7.21 percent of Konecranes' shares.
No other disclosures of changes in holdings were received in 2009.
RESEARCH AND DEVELOPMENT
In 2009, Konecranes' research and product development expenditure totaled EUR
22.0 (19.0) million, representing 1.3 (0.9) percent of sales. R&D expenditure
includes product development projects aimed at improving the quality and cost
efficiency of both products and services.
Konecranes introduced an industry shaping industrial crane, SMARTON. SMARTON can
be used in industrial sectors such as steel handling and warehousing,
automotive, general manufacturing, power, workshops, automatic storage systems
and mining. Depending on the set up, SMARTON can lift loads ranging from 30 tons
to more than 500 tons. The crane monitors its own condition and recommends when
and what kinds of inspection or preventive maintenance should be performed. The
crane can easily be updated with smart solutions. SMARTON is compact in size.
This enables new industrial halls, for example, to be smaller than before. The
feed-back of the braking energy, a standard feature in SMARTON, can reduce power
consumption and energy costs by up to one third.
The DynaPilot sway-control system, integrated into the crane's traveling
inverter, is now available as a standard option for the whole range of
Konecranes' lifting solutions. By modeling the load swing, the integrated
electronic system is designed to prevent the load from swaying due to crane
movements. Being able to operate at faster speeds and position loads more
quickly also helps to improve productivity.
The product development in Ports Business unit focused on equipment fleet
utilization improvement, DriverAids automation upgrade features and reduction of
environmental footprint. With Konecranes CHEMS-software, container terminal
operators can monitor equipment fleet efficiency in real time and identify areas
for operational improvement. DriverAids features include features like Container
Positioning Information System, Auto-Steering, Auto-Stop, Auto-Move and further
load handling functions. Environmental footprint reduction includes features for
diesel powered yard equipment like FuelSaver, Hybrid and Emission Catalyst, as
well as conversions to electric high voltage supply.
Considerable efforts were made to develop service offering as well. Konecranes
developed, patented and launched a new unique runway measurement and analysis
method called the RailQ. With the RailQ method the customer receives a 3D model
of his current runway condition. In addition to the 3D model the customer
receives a thorough report of the analysis, pointing out the improvement needs
and corrections needed to bring the runway back to accepted tolerances.
Remote services were launched to support Konecranes advanced maintenance
concept. By utilizing real time equipment usage data, we can optimize and
predict maintenance needs and give needed expert support to our customers from
three different remote centers, located in Shanghai, Springfield and Hyvinkää.
The Crane Reliability Survey (CRS) service is designed to enhance safety,
improve performance, and extend life span for all makes and models of overhead
lifting equipment. The customized review process, in-depth analysis, and
expertise of Konecranes' specialists all help customers to create robust
maintenance plans, control ownership costs, and maximize return on investment
over the equipment's entire life span.
Konecranes put greater emphasis on industrial design during 2009 by setting up a
dedicated team within the Product Development Unit.
ENVIRONMENTAL ISSUES
Particular attention in 2009 was paid to developing a global environmental
network and sharing best practices across the Group. Defining key environmental
indicators and developing environmental reporting were also prioritized. During
2009, the Group defined an environmental program for the next few years. The
main points of the program include developing Eco-efficient systems and
services, systematic environmental management, GRI reporting, and increasing
internal and external information flows.
The Group introduced new tools, such as web conferencing, and increased the use
of phone and video meetings in internal communications in 2009. These are
expected to cut work-related travel significantly and reduce the carbon
footprint and other travel-related impacts on the environment.
COST REDUCTION PROGRAMME
Due to the sharp decline in demand in all business areas, Konecranes initiated a
cost reduction program in 2009 with the aim of lowering the Group's cost base by
EUR 100 million by 2010 from the 2008 level. The cost reduction program includes
both procurement development actions and personnel reductions, but the savings
target does not include potential general deflation in material costs.
During the report period several measures were taken. During 2009, decisions
were taken to reduce the number of employees by more than 1,600. The total
number of personnel was reduced by almost 1,500 in 2009. Personnel reductions
were achieved through rationalization and efficiency improvement measures across
the company. As part of the program, the Group announced closures of the crane
manufacturing sites in Ettlingen in Germany, Loughborough in the UK and
Birmingham in the US, and decided to discontinue certain products. The closure
of these sites will lead to a reduction of approximately 150 employees in 2010.
The Group procurement development program is proceeding according to plan. A
global category management has been established, and the consolidation of
suppliers is lowering our costs.
Based on the above-mentioned restructuring actions, Konecranes expects to
achieve the targeted cost savings of EUR 100 million in 2010 compared with the
cost base in 2008. Restructuring costs of EUR 20.9 million were booked in 2009,
with EUR 5.1 million of this in the fourth quarter.
RISKS AND UNCERTAINTIES
The Group's principal short-term risks and uncertainties derive from a prolonged
downturn in the world economy or other unforeseen events. A decrease in demand
for Konecranes' products and services may have a continuing negative effect on
the Group's sales volumes and pricing power, and thus result in decreasing
profits, a possible impairment of goodwill and other assets, and inventory
obsolescence.
The shortage of credit may cause difficulties to Konecranes' customers,
suppliers, and financial and other counterparties. The risk may be realized as a
shortage of supplies or defaulting liabilities. The Group has paid special
attention to securing customer payments and requiring strict terms for possible
postponements by customers. Increased attention is also being paid to the
financial status and business continuity of key subcontractors and vendors. As
of now, no such major risks have materialized. In the case of a continued
shortage of credit and a prolonged economic downturn, credit losses may
increase.
The continuing financial crisis may also lead to challenges in securing
liquidity. Although Konecranes has not faced difficulties in financing its
business operations, the Group aims to keep more cash in the balance sheet than
normally. Konecranes is supported by its solid financial position and strong
balance sheet in securing its liquidity.
Challenges in financing may lead customers to postpone projects or even to
cancel existing orders. Currently the financial stringency has mainly been
visible in prolonged decision making times. As of now, no major cancellations
have occurred and advance payments represent about one fourth of the order book.
However, if longer postponements and potential cancellations of some major
projects actually occur, this may deteriorate the quality of the order book and
cause losses. Konecranes is paying increased attention to order book quality and
is continuously monitoring the status of orders.
Currency rate fluctuations 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.
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, auto liability and other matters involving claims of general
liability.
While the final outcome of these proceedings 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.
FUTURE PROSPECTS
Despite a slight pick-up in industrial output in the second half of 2009,
Konecranes expects the uncertainty to continue, with no credible signs of market
recovery visible. The demand for maintenance services is expected to remain
stable or to increase gradually should capacity utilization within customer
industries continue to improve. The demand for new equipment is expected to
remain generally on a low level, and to suffer from overcapacity at customers.
Price competition is likely to remain. A high degree of fluctuation between
quarters may continue due to the timing of orders.
The year 2010 began with a thinner order book than the previous year. Our
forecast is that sales in 2010 will be lower than in 2009. We expect the
operating profit in 2010 to be lower than in 2009 before restructuring costs.
BOARD OF DIRECTORS' PROPOSAL FOR DISPOSAL OF DISTRIBUTABLE FUNDS
The parent company's non-restricted equity is EUR 186,390,616.64 of which the
net income for the year is EUR 38,732,347.05. The Group's non-restricted equity
is EUR 330,849,000.
According to the Finnish Companies Act, the distributable funds of the company
are calculated based on the parent company's non-restricted equity. For the
purpose of determining the amount of the dividend the Board of Directors has
assessed the solvency of the parent company and the economic circumstances
subsequent to the financial year end.
Based on such assessments the Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 0.90 be paid on each share and that the remaining
non-restricted equity is retained in shareholders' equity.
A pdf version of Konecranes' full audited financial statements including the
report of the Board of Directors will be available on the web in week 8 and the
printed version in week 9.
Helsinki, February 4, 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 Konecranes' 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, 2009 Konecranes applied two new or amended standards: IFRS 8,
Operating Segments and IAS 1, Presentation of Financial Statements - Revised.
IFRS 8 replaces the IAS 14, Segment Reporting standard. In accordance with IFRS
8, the identification of operating segments is based on management reporting.
The new standard did not change the present Segment reporting, because the
Business Segments specified according to internal reporting are nowadays the
Group's primary form of managerial reporting. The amendment to IAS 1 mainly
affected to the presentation of the statement of income and the statement of
changes in equity. Otherwise Konecranes applies the same accounting policies as
were applied in the 2008 annual financial statements.
The figures presented in the tables above have been rounded to one decimal,
which should be taken into account when reading the sum figures.
The numbers stated in this bulletin have been subject to audit.
Consolidated statement of income
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| | 2009 | 2008 | % | 2009 | 2008 | |
--------------------------------------------------------------------------------
| Sales | 428.9 | 650.4 | -34.1 | 1,671.3 | 2,102.5 | -20.5 |
--------------------------------------------------------------------------------
| Other operating | 1.1 | 4.0 | | 2.9 | 6.3 | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -11.8 | -7.3 | | -32.5 | -26.6 | |
| impairments | | | | | | |
--------------------------------------------------------------------------------
| Other operating | -396.0 | -570.7 | | -1,543.8 | -1,833.5 | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 22.2 | 76.5 | -71.0 | 97.9 | 248.7 | -60.6 |
--------------------------------------------------------------------------------
| Share of | -0.2 | -3.5 | | -2.2 | -3.9 | |
| associates' and | | | | | | |
| joint ventures' | | | | | | |
| result | | | | | | |
--------------------------------------------------------------------------------
| Financial income | -3.4 | 0.8 | | -7.1 | -8.6 | |
| and expenses | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 18.6 | 73.8 | -74.8 | 88.6 | 236.2 | -62.5 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Taxes | -5.2 | -23.8 | | -26.1 | -69.6 | |
--------------------------------------------------------------------------------
| NET PROFIT FOR | 13.4 | 50.0 | -73.3 | 62.5 | 166.6 | -62.5 |
| THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for | | | | | | |
| the period | | | | | | |
| attributable to: | | | | | | |
--------------------------------------------------------------------------------
| Shareholders of | 13.7 | 49.9 | | 63.6 | 166.4 | |
| the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | -0.4 | 0.1 | | -1.1 | 0.1 | |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.23 | 0.85 | -72.6 | 1.08 | 2.83 | -61.9 |
| share, basic | | | | | | |
| (EUR) | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.23 | 0.85 | -72.5 | 1.08 | 2.82 | -61.8 |
| share, diluted | | | | | | |
| (EUR) | | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change |
| | 2009 | 2008 | % | 2009 | 2008 | % |
--------------------------------------------------------------------------------
| Net profit for the | 13.4 | 50.0 | -73.3 | 62.5 | 166.6 | -62.5 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | | | | | | |
| income for the | | | | | | |
| period, net of tax | | | | | | |
--------------------------------------------------------------------------------
| Exchange differences | 3.1 | -4.6 | | -1.1 | -4.5 | |
| on | | | | | | |
| translating foreign | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | -2.5 | -2.2 | | 1.9 | -3.3 | |
--------------------------------------------------------------------------------
| Income tax relating | 0.7 | 0.6 | | -0.5 | 0.8 | |
| to | | | | | | |
| components of other | | | | | | |
| comprehensive income | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 1.2 | -6.2 | | 0.3 | -6.9 | |
| income for the | | | | | | |
| period, net of tax | | | | | | |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | 14.5 | 43.7 | -66.8 | 62.8 | 159.6 | -60.7 |
| INCOME FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | | | | | | |
| income attributable | | | | | | |
| to: | | | | | | |
--------------------------------------------------------------------------------
| Shareholders of the | 14.9 | 43.7 | | 64.0 | 159.5 | |
| parent company | | | | | | |
--------------------------------------------------------------------------------
| Minority interest | -0.4 | 0.0 | | -1.2 | 0.1 | |
--------------------------------------------------------------------------------
Consolidated balance sheet
--------------------------------------------------------------------------------
| EUR million | | |
--------------------------------------------------------------------------------
| ASSETS | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Goodwill | 71.5 | 57.8 |
--------------------------------------------------------------------------------
| Intangible assets | 65.8 | 62.5 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 91.3 | 69.5 |
--------------------------------------------------------------------------------
| Advance payments and construction in | 11.8 | 5.4 |
| progress | | |
--------------------------------------------------------------------------------
| Investments accounted for using the | 4.5 | 7.4 |
| equity method | | |
--------------------------------------------------------------------------------
| Available-for-sale investments | 1.8 | 1.9 |
--------------------------------------------------------------------------------
| Long-term loans receivable | 2.7 | 1.8 |
--------------------------------------------------------------------------------
| Deferred tax assets | 37.3 | 31.9 |
--------------------------------------------------------------------------------
| Total non-current assets | 286.7 | 238.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | | |
--------------------------------------------------------------------------------
| Raw material and semi- | 125.0 | 147.0 |
| manufactured goods | | |
--------------------------------------------------------------------------------
| Work in progress | 114.3 | 168.4 |
--------------------------------------------------------------------------------
| Advance payments | 8.9 | 17.8 |
--------------------------------------------------------------------------------
| Total inventories | 248.2 | 333.2 |
--------------------------------------------------------------------------------
| Accounts receivable | 265.4 | 398.3 |
--------------------------------------------------------------------------------
| Loans receivable | 2.9 | 0.4 |
--------------------------------------------------------------------------------
| Other receivables | 23.5 | 40.8 |
--------------------------------------------------------------------------------
| Deferred assets | 96.1 | 93.6 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 137.5 | 100.9 |
--------------------------------------------------------------------------------
| Total current assets | 773.7 | 967.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 1,060.4 | 1,205.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | | |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of | | |
| the parent company | | |
--------------------------------------------------------------------------------
| Share capital | 30.1 | 30.1 |
--------------------------------------------------------------------------------
| Share premium account | 39.3 | 39.3 |
--------------------------------------------------------------------------------
| Share issue | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Fair value reserves | 2.3 | 0.9 |
--------------------------------------------------------------------------------
| Translation difference | -18.4 | -17.4 |
--------------------------------------------------------------------------------
| Paid in capital | 9.0 | 7.3 |
--------------------------------------------------------------------------------
| Retained earnings | 276.6 | 172.1 |
--------------------------------------------------------------------------------
| Net profit for the period | 63.6 | 166.4 |
--------------------------------------------------------------------------------
| Total equity attributable to equity | 402.5 | 398.8 |
| holders of the parent company | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 4.6 | 1.9 |
--------------------------------------------------------------------------------
| Total equity | 407.1 | 400.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 38.6 | 102.8 |
--------------------------------------------------------------------------------
| Other long-term liabilities | 56.1 | 56.3 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 18.6 | 18.4 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 113.3 | 177.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Provisions | 61.1 | 46.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 26.9 | 11.6 |
--------------------------------------------------------------------------------
| Advance payments received | 156.7 | 201.1 |
--------------------------------------------------------------------------------
| Progress billings | 18.9 | 4.0 |
--------------------------------------------------------------------------------
| Accounts payable | 83.7 | 135.2 |
--------------------------------------------------------------------------------
| Other short-term liabilities | 13.8 | 23.6 |
| (non-interest bearing) | | |
--------------------------------------------------------------------------------
| Accruals | 178.7 | 204.9 |
--------------------------------------------------------------------------------
| Total current liabilities | 478.9 | 580.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 653.3 | 804.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 1,060.4 | 1,205.4 |
--------------------------------------------------------------------------------
Consolidated statement of changes in equity
--------------------------------------------------------------------------------
| | Equity attributable to equity holders of the parent |
| | company |
--------------------------------------------------------------------------------
| EUR million | Share | Share | Share | Cash flow | Translation |
| | capital | premium | issue | hedge | difference |
| | | account | | | |
--------------------------------------------------------------------------------
| 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 | | | | | |
--------------------------------------------------------------------------------
| Dividends paid to | | | | | |
| minority interest | | | | | |
--------------------------------------------------------------------------------
| Share based | | | | | |
| payments recognized | | | | | |
| against equity | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | | | | | |
| scheme for | | | | | |
| executive | | | | | |
| management* | | | | | |
--------------------------------------------------------------------------------
| Change of control | | | | | |
| in associated | | | | | |
| company** | | | | | |
--------------------------------------------------------------------------------
| Business | | | | | |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | | | 1.4 | -1.1 |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | 2.3 | -18.4 |
| 31 December, 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | 3.3 | -12.9 |
| 1 January, 2008 | | | | | |
--------------------------------------------------------------------------------
| Option exercised | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | 0.1 | | |
--------------------------------------------------------------------------------
| Dividends paid to | | | | | |
| equity holders | | | | | |
--------------------------------------------------------------------------------
| Dividends paid to | | | | | |
| minority interest | | | | | |
--------------------------------------------------------------------------------
| Share based | | | | | |
| payments recognized | | | | | |
| against equity | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Business | | | | | |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | | | -2.4 | -4.5 |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.1 | 0.9 | -17.4 |
| 31 December, 2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Equity attributable to | | |
| | equity holders of the parent | | |
| | company | | |
--------------------------------------------------------------------------------
| EUR million | Paid in | Retained | Total | Minority | Total |
| | capital | earnings | | interest | equity |
--------------------------------------------------------------------------------
| Balance at | 7.3 | 338.5 | 398.8 | 1.9 | 400.7 |
| 1 January, 2009 | | | | | |
--------------------------------------------------------------------------------
| Option exercised | 1.8 | | 1.8 | | 1.8 |
--------------------------------------------------------------------------------
| Share issue | | | -0.1 | | -0.1 |
--------------------------------------------------------------------------------
| Dividends paid to | | -53.3 | -53.3 | | -53.3 |
| equity holders | | | | | |
--------------------------------------------------------------------------------
| Dividends paid to | | | 0.0 | | 0.0 |
| minority interest | | | | | |
--------------------------------------------------------------------------------
| Share based | | 3.5 | 3.5 | | 3.5 |
| payments recognized | | | | | |
| against equity | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | 0.0 | | 0.0 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | | -8.4 | -8.4 | 1.3 | -7.1 |
| scheme for | | | | | |
| executive | | | | | |
| management* | | | | | |
--------------------------------------------------------------------------------
| Change of control | | -3.7 | -3.7 | | -3.7 |
| in associated | | | | | |
| company** | | | | | |
--------------------------------------------------------------------------------
| Business | | | 0.0 | 2.6 | 2.6 |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | 63.6 | 64.0 | -1.2 | 62.8 |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 9.0 | 340.2 | 402.5 | 4.6 | 407.1 |
| 31 December, 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 4.7 | 216.2 | 280.7 | 0.1 | 280.8 |
| 1 January, 2008 | | | | | |
--------------------------------------------------------------------------------
| Option exercised | 4.1 | | 4.1 | | 4.1 |
--------------------------------------------------------------------------------
| Share issue | | | 0.1 | | 0.1 |
--------------------------------------------------------------------------------
| Dividends paid to | | -46.8 | -46.8 | | -46.8 |
| equity holders | | | | | |
--------------------------------------------------------------------------------
| Dividends paid to | | | 0.0 | -0.1 | -0.1 |
| minority interest | | | | | |
--------------------------------------------------------------------------------
| Share based | | 2.7 | 2.7 | | 2.7 |
| payments recognized | | | | | |
| against equity | | | | | |
--------------------------------------------------------------------------------
| Purchase of | -1.6 | | -1.6 | | -1.6 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Business | | | 0.0 | 1.8 | 1.8 |
| combinations | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | 166.4 | 159.5 | 0.1 | 159.6 |
| income | | | | | |
--------------------------------------------------------------------------------
| Balance at | 7.3 | 338.5 | 398.8 | 1.9 | 400.7 |
| 31 December, 2008 | | | | | |
--------------------------------------------------------------------------------
* Incentive arrangement for Konecranes Group executive management (KCR
Management Oy)
** Increase of Konecranes' influence in the management of associated company ZAO
Zaporozhje Kran in Ukraine.
Consolidated cash flow statement
--------------------------------------------------------------------------------
| EUR million | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| Net income | 62.5 | 166.6 |
--------------------------------------------------------------------------------
| Adjustments to net income | | |
--------------------------------------------------------------------------------
| Taxes | 26.1 | 69.6 |
--------------------------------------------------------------------------------
| Financial income and expenses | 7.5 | 8.9 |
--------------------------------------------------------------------------------
| Share of associates' and joint | 2.2 | 3.9 |
| ventures' result | | |
--------------------------------------------------------------------------------
| Dividend income | -0.4 | -0.3 |
--------------------------------------------------------------------------------
| Depreciation and impairments | 32.5 | 26.6 |
--------------------------------------------------------------------------------
| Profits and losses on sale of | 0.6 | -0.6 |
| fixed assets | | |
--------------------------------------------------------------------------------
| Other adjustments | 1.8 | 0.4 |
--------------------------------------------------------------------------------
| Operating income before change in net | 132.9 | 275.1 |
| working capital | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in interest-free short-term | 171.8 | -92.1 |
| receivables | | |
--------------------------------------------------------------------------------
| Change in inventories | 94.9 | -77.3 |
--------------------------------------------------------------------------------
| Change in interest-free short-term | -111.9 | 77.9 |
| liabilities | | |
--------------------------------------------------------------------------------
| Change in net working capital | 154.8 | -91.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operations before | 287.7 | 183.7 |
| financing items and taxes | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest received | 1.2 | 2.8 |
--------------------------------------------------------------------------------
| Interest paid | -4.6 | -8.3 |
--------------------------------------------------------------------------------
| Other financial income and expenses | -1.6 | -0.6 |
--------------------------------------------------------------------------------
| Income taxes paid | -59.6 | -70.5 |
--------------------------------------------------------------------------------
| Financing items and taxes | -64.6 | -76.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash from operating activities | 223.0 | 107.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Acquisition of Group companies, | -12.3 | -12.3 |
| net of cash | | |
--------------------------------------------------------------------------------
| Divestment of Group companies, | -0.4 | 0.4 |
| net of cash | | |
--------------------------------------------------------------------------------
| Acquisition of shares in associated | 0.0 | -3.0 |
| companies | | |
--------------------------------------------------------------------------------
| Investments in other shares | -0.2 | -0.5 |
--------------------------------------------------------------------------------
| Capital expenditures | -29.7 | -22.8 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 0.9 | 1.0 |
--------------------------------------------------------------------------------
| Dividends received | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -41.2 | -36.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before financing activities | 181.8 | 70.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Proceeds from options exercised and | 1.7 | 4.3 |
| share issues | | |
--------------------------------------------------------------------------------
| Purchase of treasury shares | 0.0 | -2.5 |
--------------------------------------------------------------------------------
| Related Party net investment to | -7.1 | 0.0 |
| Konecranes Plc shares | | |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings | 132.6 | 105.7 |
--------------------------------------------------------------------------------
| Repayments of long-term borrowings | -207.2 | -52.9 |
--------------------------------------------------------------------------------
| Proceeds from (+), payments of (-) | -8.4 | -29.7 |
| short-term borrowings | | |
--------------------------------------------------------------------------------
| Change in long-term receivables | -0.9 | -0.2 |
--------------------------------------------------------------------------------
| Change in short-term receivables | -2.6 | -0.2 |
--------------------------------------------------------------------------------
| Dividends paid to equity holders of the | -53.3 | -46.8 |
| parent | | |
--------------------------------------------------------------------------------
| Dividends paid to minority interest | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Net cash used in financing activities | -145.2 | -22.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation differences in cash | 0.0 | -2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change of cash and cash equivalents | 36.6 | 45.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning | 100.9 | 56.0 |
| of period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 137.5 | 100.9 |
| period | | |
--------------------------------------------------------------------------------
| Change of cash and cash equivalents | 36.6 | 45.0 |
--------------------------------------------------------------------------------
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 by | 1-12/2009 | % of | 1-12/2008 | % of |
| Business Area | | total | | total |
--------------------------------------------------------------------------------
| Service 1) | 498.4 | 35 | 658.2 | 30 |
--------------------------------------------------------------------------------
| Standard Lifting | 517.0 | 36 | 859.0 | 39 |
--------------------------------------------------------------------------------
| Heavy Lifting | 425.1 | 30 | 686.0 | 31 |
--------------------------------------------------------------------------------
| ./. Internal | -91.7 | | -136.1 | |
--------------------------------------------------------------------------------
| Total | 1 348.9 | 100 | 2 067.1 | 100 |
--------------------------------------------------------------------------------
| 1) Excl. Service Contract | | | | |
| Base | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.12.2009 | % of | 31.12.2008 | % of |
| | | total | | total |
--------------------------------------------------------------------------------
| Order book total 2) | | | | |
--------------------------------------------------------------------------------
| Service | 75.9 | 12 | 117.3 | 14 |
--------------------------------------------------------------------------------
| Standard Lifting | 192.1 | 31 | 327.9 | 38 |
--------------------------------------------------------------------------------
| Heavy Lifting | 353.8 | 57 | 420.2 | 49 |
--------------------------------------------------------------------------------
| ./. Internal | -14.8 | | -29.1 | |
--------------------------------------------------------------------------------
| Total | 607.0 | 100 | 836.3 | 100 |
--------------------------------------------------------------------------------
| 2) Percentage of | | | | |
| completion deducted | | | | |
--------------------------------------------------------------------------------
| Sales by Business Area | 1-12/2009 | % of | 1-12/2008 | % of |
| | | total | | total |
--------------------------------------------------------------------------------
| Service | 667.2 | 37 | 754.3 | 34 |
--------------------------------------------------------------------------------
| Standard Lifting | 652.2 | 36 | 835.4 | 37 |
--------------------------------------------------------------------------------
| Heavy Lifting | 479.1 | 27 | 659.4 | 29 |
--------------------------------------------------------------------------------
| ./. Internal | -127.3 | | -146.6 | |
--------------------------------------------------------------------------------
| Total | 1,671.3 | 100 | 2,102.5 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit (EBIT) | 1-12/2009 | EBIT % | 1-12/2008 | EBIT % |
| by Business Area | MEUR | | MEUR | |
| excluding restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Service | 73.5 | 11.0 | 106.2 | 14.1 |
--------------------------------------------------------------------------------
| Standard Lifting | 65.3 | 10.0 | 140.0 | 16.8 |
--------------------------------------------------------------------------------
| Heavy Lifting | 36.7 | 7.7 | 53.6 | 8.1 |
--------------------------------------------------------------------------------
| Group costs | -54.6 | | -47.2 | |
--------------------------------------------------------------------------------
| Consolidation items | -1.9 | | -3.9 | |
--------------------------------------------------------------------------------
| Total | 118.8 | 7.1 | 248.7 | 11.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit (EBIT) | 1-12/2009 | EBIT % | 1-12/2008 | EBIT % |
| by Business Area | MEUR | | MEUR | |
| including restructuring | | | | |
| costs | | | | |
--------------------------------------------------------------------------------
| Service | 70.8 | 10.6 | 106.2 | 14.1 |
--------------------------------------------------------------------------------
| Standard Lifting | 49.7 | 7.6 | 140.0 | 16.8 |
--------------------------------------------------------------------------------
| Heavy Lifting | 34.0 | 7.1 | 53.6 | 8.1 |
--------------------------------------------------------------------------------
| Group costs | -54.6 | | -47.2 | |
--------------------------------------------------------------------------------
| Consolidation items | -1.9 | | -3.9 | |
--------------------------------------------------------------------------------
| Total | 97.9 | 5.9 | 248.7 | 11.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel by Business | 31.12.2009 | % of | 31.12.2008 | % of |
| Area | | total | | total |
| (at the end of the | | | | |
| period) | | | | |
--------------------------------------------------------------------------------
| Service | 4 891 | 50 | 5 372 | 54 |
--------------------------------------------------------------------------------
| Standard Lifting | 3 012 | 31 | 2 808 | 28 |
--------------------------------------------------------------------------------
| Heavy Lifting | 1 603 | 16 | 1 439 | 15 |
--------------------------------------------------------------------------------
| Group staff | 276 | 3 | 285 | 3 |
--------------------------------------------------------------------------------
| Total | 9,782 | 100 | 9,904 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. GEOGRAPHICAL SEGMENTS | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | |
--------------------------------------------------------------------------------
| Sales by market | 1-12/2009 | % of | 1-12/2008 | % of |
| | | total | | total |
--------------------------------------------------------------------------------
| Europe-Middle East-Africa | 928.0 | 56 | 1 207.5 | 57 |
| (EMEA) | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 479.5 | 29 | 591.7 | 28 |
--------------------------------------------------------------------------------
| Asia-Pacific (APAC) | 263.8 | 16 | 303.3 | 14 |
--------------------------------------------------------------------------------
| Total | 1,671.3 | 100 | 2,102.5 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel by region | 31.12.2009 | % of | 31.12.2008 | % of |
| (at the end of the | | total | | total |
| period) | | | | |
--------------------------------------------------------------------------------
| Europe-Middle East-Africa | 5,533 | 57 | 5,658 | 57 |
| (EMEA) | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 2,236 | 23 | 2,619 | 26 |
--------------------------------------------------------------------------------
| Asia-Pacific (APAC) | 2,013 | 21 | 1,627 | 16 |
--------------------------------------------------------------------------------
| Total | 9,782 | 100 | 9,904 | 100 |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| KEY FIGURES | 31.12.2009 | 31.12.2008 | Change % |
--------------------------------------------------------------------------------
| Earnings per share, basic (EUR) | 1.08 | 2.83 | -61.9 |
--------------------------------------------------------------------------------
| Earnings per share, diluted | 1.08 | 2.82 | -61.8 |
| (EUR) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on capital employed %, | 19.3 | 56.3 | -65.7 |
| Rolling 12 Months (R12M) | | | |
--------------------------------------------------------------------------------
| Return on equity %, Rolling 12 | 15.5 | 48.9 | -68.3 |
| Months (R12M) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share (EUR) | 6.84 | 6.75 | 1.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | 1.4 | 1.5 | -6.7 |
--------------------------------------------------------------------------------
| Gearing % | -19.1 | 2.8 | -782.1 |
--------------------------------------------------------------------------------
| Solidity % | 45.1 | 39.9 | 13.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, EUR million | 130.4 | 275.3 | -52.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments total (excl. | 25.7 | 22.3 | 15.3 |
| acquisitions), EUR million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing net debt, EUR | -77.7 | 11.3 | -785.6 |
| million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net working capital, EUR million | 138.8 | 263.8 | -47.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of personnel | 9 811 | 9 222 | 6.4 |
| during the period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | 58,922,323 | 58,725,782 | 0.3 |
| outstanding, basic | | | |
--------------------------------------------------------------------------------
| Average number of shares | 59,085,936 | 58,986,740 | 0.2 |
| outstanding, diluted | | | |
--------------------------------------------------------------------------------
| Number of shares outstanding | 58,812,624 | 59,069,720 | -0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The period end exchange rates: | 31.12.2009 | 31.12.2008 | Change % |
--------------------------------------------------------------------------------
| USD - US dollar | 1.441 | 1.392 | -3.4 |
--------------------------------------------------------------------------------
| CAD - Canadian dollar | 1.513 | 1.700 | 12.4 |
--------------------------------------------------------------------------------
| GBP - Pound sterling | 0.888 | 0.953 | 7.3 |
--------------------------------------------------------------------------------
| CNY - Chinese yuan | 9.835 | 9.496 | -3.5 |
--------------------------------------------------------------------------------
| SGD - Singapore dollar | 2.019 | 2.004 | -0.8 |
--------------------------------------------------------------------------------
| SEK - Swedish krona | 10.252 | 10.870 | 6.0 |
--------------------------------------------------------------------------------
| NOK - Norwegian krone | 8.300 | 9.750 | 17.5 |
--------------------------------------------------------------------------------
| AUD - Australian dollar | 1.601 | 2.027 | 26.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The period average exchange | 31.12.2009 | 31.12.2008 | Change % |
| rates: | | | |
--------------------------------------------------------------------------------
| USD - US dollar | 1.395 | 1.471 | 5.4 |
--------------------------------------------------------------------------------
| CAD - Canadian dollar | 1.585 | 1.559 | -1.7 |
--------------------------------------------------------------------------------
| GBP - Pound sterling | 0.891 | 0.796 | -10.7 |
--------------------------------------------------------------------------------
| CNY - Chinese yuan | 9.529 | 10.225 | 7.3 |
--------------------------------------------------------------------------------
| SGD - Singapore dollar | 2.024 | 2.076 | 2.6 |
--------------------------------------------------------------------------------
| SEK - Swedish krona | 10.618 | 9.610 | -9.5 |
--------------------------------------------------------------------------------
| NOK - Norwegian krone | 8.726 | 8.218 | -5.8 |
--------------------------------------------------------------------------------
| AUD - Australian dollar | 1.773 | 1.741 | -1.8 |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES AND PLEDGED ASSETS
--------------------------------------------------------------------------------
| EUR million | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| For own commercial obligations | | |
--------------------------------------------------------------------------------
| Pledged assets | 0.0 | 0.2 |
--------------------------------------------------------------------------------
| Guarantees | 212.0 | 159.0 |
--------------------------------------------------------------------------------
| For associated companies | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 13.0 |
--------------------------------------------------------------------------------
| Leasing liabilities | | |
--------------------------------------------------------------------------------
| Next year | 27.7 | 29.7 |
--------------------------------------------------------------------------------
| Later on | 71.3 | 66.0 |
--------------------------------------------------------------------------------
| Other | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Total | 311.1 | 268.2 |
--------------------------------------------------------------------------------
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 | 31.12.2009 | 31.12.2009 | 31.12.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| | Nominal | Fair value | Nominal | Fair value |
| | value | | value | |
--------------------------------------------------------------------------------
| Foreign exchange | 129.5 | 2.6 | 165.9 | 5.7 |
| forward contracts | | | | |
--------------------------------------------------------------------------------
| Electricity | 2.1 | -0.2 | 1.8 | -0.4 |
| derivatives | | | | |
--------------------------------------------------------------------------------
| Total | 131.6 | 2.5 | 167.7 | 5.3 |
--------------------------------------------------------------------------------
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 Heavy Lifting projects.
ACQUISITIONS
During January-December, Konecranes made ten acquisitions, and sold one minor
operation in Austria. In July 2009, Konecranes entered to new business segment
by making two acquisitions for load-handling solutions with aluminum rail
systems and manipulators. Konecranes increased its ownership in the Austrian
Konecranes Lifting Systems GmbH (former ACS Technologies GmbH) from 49.9% to 80%
and at the same time acquired the assets of the German company Knight Europe
GmbH & Co. KG. The two acquired companies' combined net sales were in 2008
approximately EUR 15 million and they employ about 100 people.
During the last quarter in 2009 Konecranes finalized the acquisition of a
majority holding (65%) in Jiangsu Three Horses Crane Manufacture Co. Ltd.
(SANMA) based in Jingjiang, China. The company is a nationwide supplier of wire
rope hoists in China and a crane supplier in Jiangsu and the neighboring
provinces. The letter of intent was signed and published in November 2008 and
the contract was signed in April 2009. The company's net sales were
approximately EUR 18 million in 2008 and it has more than 500 employees.
During 2009 Konecranes acquired also the remaining 80,5% of the share capital in
the leading crane and service company Dynamic Cranes Systems Ltd in South
Africa. DCS had annual net sales of approximately EUR 8 million in 2008 and
about 70 employees.
Four of the acquisitions related to the machine tool service (MTS) business in
Scandinavia and USA, of which the biggest was the company Machine Tool Solutions
Unlimited in Cincinnati, Ohio. The annual net sales of the company in 2008 were
approximately EUR 3.5 million and the company has 18 employees.
The preliminary fair values of the identifiable assets and liabilities of the
acquired businesses at date of acquisitions are summarized below.
--------------------------------------------------------------------------------
| EUR million | 31.12.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| | Recognized on | Carrying value |
| | acquisition | |
--------------------------------------------------------------------------------
| Intangible assets | 14.1 | 1.9 |
--------------------------------------------------------------------------------
| Tangible assets | 10.6 | 10.6 |
--------------------------------------------------------------------------------
| Deferred tax assets | 0.9 | 0.9 |
--------------------------------------------------------------------------------
| Inventories | 7.3 | 5.9 |
--------------------------------------------------------------------------------
| Account receivables and other assets | 15.0 | 11.6 |
--------------------------------------------------------------------------------
| Cash and bank | 3.7 | 3.7 |
--------------------------------------------------------------------------------
| Total assets | 51.6 | 34.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deferred tax liabilities | 2.2 | 0.7 |
--------------------------------------------------------------------------------
| Long- and short-term interest bearing | 15.5 | 15.5 |
| debts | | |
--------------------------------------------------------------------------------
| Account payables | 8.2 | 8.2 |
--------------------------------------------------------------------------------
| Other liabilities | 7.2 | 7.2 |
--------------------------------------------------------------------------------
| Minority interest | 5.0 | 2.7 |
--------------------------------------------------------------------------------
| Total liabilities | 38.2 | 34.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | 13.4 | 0.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition costs | 30.1 | |
--------------------------------------------------------------------------------
| Goodwill | 16.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash outflow on acquisition | | |
--------------------------------------------------------------------------------
| Acquisition costs | 30.1 | |
--------------------------------------------------------------------------------
| Cash flow of earlier interests in | -3.8 | |
| acquired businesses | | |
--------------------------------------------------------------------------------
| Liabilities assumed | -10.4 | |
--------------------------------------------------------------------------------
| Acquisition costs paid in cash | 15.9 | |
--------------------------------------------------------------------------------
| Cash and cash equivalents of acquired | -3.7 | |
| companies | | |
--------------------------------------------------------------------------------
| Net cash flow arising on acquisition | 12.2 | |
--------------------------------------------------------------------------------
Divestments
During the second quarter 2009 Konecranes sold its small Austrian subsidiary
STAHL CraneSystems Ges.m.b.H.
Quarterly figures
CONSOLIDATED STATEMENT OF INCOME, QUARTERLY
--------------------------------------------------------------------------------
| EUR | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| million | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Sales | 428.9 | 368.7 | 431.6 | 442.1 | 650.4 | 520.4 | 492.4 | 439.2 |
--------------------------------------------------------------------------------
| Other | 1.1 | 0.4 | 0.8 | 0.7 | 4.0 | 0.5 | 1.3 | 0.6 |
| operati | | | | | | | | |
| ng | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Depre-c | -11.8 | -7.4 | -6.5 | -6.8 | -7.3 | -6.7 | -6.5 | -6.2 |
| iation | | | | | | | | |
| and | | | | | | | | |
| impair- | | | | | | | | |
| ments | | | | | | | | |
--------------------------------------------------------------------------------
| Restruc | -5.1 | -13.9 | -1.9 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| -turing | | | | | | | | |
| costs | | | | | | | | |
--------------------------------------------------------------------------------
| Other | -390. | -337. | -395. | -399.2 | -570.7 | -445.3 | -428.9 | -388.7 |
| operati | 9 | 7 | 1 | | | | | |
| ng | | | | | | | | |
| expense | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Operati | 22.2 | 10.2 | 28.8 | 36.8 | 76.5 | 69.0 | 58.3 | 45.0 |
| ng | | | | | | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Share | -0.2 | -0.7 | -1.4 | 0.0 | -3.5 | -0.8 | 0.2 | 0.2 |
| of | | | | | | | | |
| asso-ci | | | | | | | | |
| ates' | | | | | | | | |
| and | | | | | | | | |
| joint | | | | | | | | |
| venture | | | | | | | | |
| s' | | | | | | | | |
| result | | | | | | | | |
--------------------------------------------------------------------------------
| Financi | -3.4 | -2.3 | 0.0 | -1.5 | 0.8 | -4.6 | -5.9 | 1.1 |
| al | | | | | | | | |
| income | | | | | | | | |
| and | | | | | | | | |
| expense | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | 18.6 | 7.2 | 27.4 | 35.4 | 73.8 | 63.5 | 52.6 | 46.3 |
| before | | | | | | | | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
| Taxes | -5.2 | -3.0 | -7.8 | -10.1 | -23.8 | -18.1 | -14.7 | -13.0 |
--------------------------------------------------------------------------------
| Net | 13.4 | 4.2 | 19.6 | 25.3 | 50.0 | 45.4 | 37.9 | 33.3 |
| profit | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, QUARTERLY
--------------------------------------------------------------------------------
| EUR | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| million | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| ASSETS | | | | | | | | |
--------------------------------------------------------------------------------
| Goodwil | 71.5 | 64.4 | 59.5 | 58.4 | 57.8 | 59.8 | 59.1 | 56.4 |
| l | | | | | | | | |
--------------------------------------------------------------------------------
| In-tang | 65.8 | 60.5 | 61.1 | 61.3 | 62.5 | 63.5 | 63.8 | 60.8 |
| ible | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
| Propert | 91.3 | 76.6 | 75.5 | 72.7 | 69.5 | 66.3 | 63.4 | 60.6 |
| y, | | | | | | | | |
| plant | | | | | | | | |
| and | | | | | | | | |
| equipme | | | | | | | | |
| nt | | | | | | | | |
--------------------------------------------------------------------------------
| Other | 58.1 | 54.8 | 56.5 | 48.8 | 48.5 | 42.9 | 38.6 | 36.6 |
--------------------------------------------------------------------------------
| Total | 286.7 | 256.3 | 252.7 | 241.2 | 238.3 | 232.4 | 224.8 | 214.4 |
| non-cur | | | | | | | | |
| rent | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invento | 248.2 | 303.0 | 322.6 | 356.7 | 333.2 | 359.6 | 323.5 | 274.6 |
| r-ies | | | | | | | | |
--------------------------------------------------------------------------------
| Receiva | 387.9 | 400.5 | 441.3 | 468.3 | 533.0 | 512.7 | 488.6 | 458.7 |
| bles | | | | | | | | |
| and | | | | | | | | |
| other | | | | | | | | |
| current | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 137.5 | 88.5 | 96.9 | 116.0 | 100.9 | 75.1 | 77.3 | 59.7 |
| and | | | | | | | | |
| cash | | | | | | | | |
| equi-va | | | | | | | | |
| lents | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 773.7 | 792.1 | 860.7 | 941.0 | 967.1 | 947.4 | 889.4 | 793.0 |
| current | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1060. | 1048. | 1113. | 1182.2 | 1205.4 | 1179.8 | 1114.2 | 1007.4 |
| assets | 4 | 4 | 4 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND | | | | | | | |
| LIABILITIES | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 407.1 | 389.1 | 385.4 | 379.7 | 400.7 | 354.6 | 302.0 | 261.6 |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cur | 113.3 | 93.5 | 109.3 | 180.4 | 177.6 | 109.5 | 134.1 | 123.9 |
| rent | | | | | | | | |
| lia-bil | | | | | | | | |
| ities | | | | | | | | |
--------------------------------------------------------------------------------
| Provi.- | 61.1 | 54.9 | 42.9 | 46.9 | 46.8 | 41.8 | 38.8 | 35.9 |
| sions | | | | | | | | |
--------------------------------------------------------------------------------
| Advance | 156.7 | 157.3 | 175.2 | 197.1 | 201.1 | 245.8 | 219.3 | 192.9 |
| payment | | | | | | | | |
| s | | | | | | | | |
| receive | | | | | | | | |
| d | | | | | | | | |
--------------------------------------------------------------------------------
| Other | 322.2 | 353.6 | 400.6 | 378.2 | 379.3 | 428.1 | 420.0 | 393.1 |
| current | | | | | | | | |
| liabili | | | | | | | | |
| -ties | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 653.3 | 659.3 | 728.0 | 802.6 | 804.7 | 825.2 | 812.2 | 745.8 |
| liabili | | | | | | | | |
| -ties | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1060. | 1048. | 1113. | 1182.2 | 1205.4 | 1179.8 | 1114.2 | 1007.4 |
| equity | 4 | 4 | 4 | | | | | |
| and | | | | | | | | |
| liabili | | | | | | | | |
| -ties | | | | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT - QUARTERLY
--------------------------------------------------------------------------------
| EUR | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| million | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Operatin | 36.4 | 17.2 | 35.4 | 43.9 | 83.2 | 76.0 | 64.9 | 51.1 |
| g income | | | | | | | | |
| before | | | | | | | | |
| change | | | | | | | | |
| in net | | | | | | | | |
| working | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Change | 64.4 | 57.4 | 23.6 | 9.5 | -30.5 | -2.0 | -29.9 | -29.0 |
| in net | | | | | | | | |
| working | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Financin | -10. | -8.4 | -24.6 | -20.8 | -19.1 | -22.5 | -20.9 | -14.1 |
| g items | 8 | | | | | | | |
| and | | | | | | | | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
| Net cash | 89.9 | 66.2 | 34.4 | 32.6 | 33.5 | 51.4 | 14.1 | 8.0 |
| from | | | | | | | | |
| operatin | | | | | | | | |
| g | | | | | | | | |
| activi-t | | | | | | | | |
| ies | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | -18. | -9.2 | -8.7 | -5.0 | -9.2 | -9.7 | -14.5 | -3.6 |
| flow | 4 | | | | | | | |
| from | | | | | | | | |
| investin | | | | | | | | |
| g | | | | | | | | |
| activi-t | | | | | | | | |
| ies | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 71.5 | 57.0 | 25.7 | 27.6 | 24.3 | 41.8 | -0.4 | 4.4 |
| flow | | | | | | | | |
| before | | | | | | | | |
| financin | | | | | | | | |
| g | | | | | | | | |
| activi-t | | | | | | | | |
| ies | | | | | | | | |
--------------------------------------------------------------------------------
| Proceeds | 0.2 | 0.2 | 0.6 | 0.7 | 1.3 | 0.4 | 2.2 | 0.4 |
| from | | | | | | | | |
| options | | | | | | | | |
| exercise | | | | | | | | |
| d and | | | | | | | | |
| share | | | | | | | | |
| issues | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -2.5 |
| of | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Related | 0.0 | 0.0 | -7.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Party | | | | | | | | |
| net | | | | | | | | |
| invest-m | | | | | | | | |
| ent to | | | | | | | | |
| Konecran | | | | | | | | |
| es | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Change | -24. | -64.2 | -36.9 | 38.8 | 2.9 | -45.3 | 15.1 | 50.0 |
| of | 1 | | | | | | | |
| interest | | | | | | | | |
| -bearing | | | | | | | | |
| debt | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0.0 | 0.0 | 0.0 | -53.3 | 0.0 | 0.0 | 0.0 | -46.8 |
| s paid | | | | | | | | |
| to | | | | | | | | |
| equity | | | | | | | | |
| holders | | | | | | | | |
| of the | | | | | | | | |
| parent | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | 0.0 |
| s paid | | | | | | | | |
| to | | | | | | | | |
| minority | | | | | | | | |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Net cash | -23. | -64.0 | -43.4 | -13.8 | 4.2 | -45.0 | 17.3 | 1.1 |
| used in | 9 | | | | | | | |
| financin | | | | | | | | |
| g | | | | | | | | |
| activiti | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Transl-a | 1.5 | -1.4 | -1.4 | 1.3 | -2.7 | 1.0 | 0.8 | -1.8 |
| tion | | | | | | | | |
| differen | | | | | | | | |
| -ces in | | | | | | | | |
| cash | | | | | | | | |
--------------------------------------------------------------------------------
| Change | 49.1 | -8.4 | -19.1 | 15.1 | 25.8 | -2.2 | 17.6 | 3.8 |
| of cash | | | | | | | | |
| and cash | | | | | | | | |
| equi-val | | | | | | | | |
| ents | | | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 88.5 | 96.9 | 116.0 | 100.9 | 75.1 | 77.3 | 59.7 | 56.0 |
| cash | | | | | | | | |
| equi-val | | | | | | | | |
| ents at | | | | | | | | |
| beginnin | | | | | | | | |
| g of | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 137. | 88.5 | 96.9 | 116.0 | 100.9 | 75.1 | 77.3 | 59.7 |
| cash | 5 | | | | | | | |
| equi-val | | | | | | | | |
| ents at | | | | | | | | |
| end of | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Change | 49.1 | -8.4 | -19.1 | 15.1 | 25.8 | -2.2 | 17.6 | 3.8 |
| of cash | | | | | | | | |
| and cash | | | | | | | | |
| equi-val | | | | | | | | |
| ents | | | | | | | | |
--------------------------------------------------------------------------------
QUARTERLY SEGMENT INFORMATION
--------------------------------------------------------------------------------
| EUR | | | | | | | | |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| Sales by | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| Business | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| Area | | | | | | | | |
--------------------------------------------------------------------------------
| Service | 170.5 | 157.6 | 169.5 | 169.7 | 220.6 | 187.2 | 180.5 | 166.1 |
--------------------------------------------------------------------------------
| Standard | 157.6 | 148.3 | 168.2 | 178.2 | 256.4 | 206.7 | 203.9 | 168.3 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| Heavy | 128.8 | 92.7 | 127.9 | 129.7 | 219.8 | 160.5 | 144.8 | 134.2 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| ./. | -28.0 | -29.8 | -34.0 | -35.4 | -46.4 | -33.9 | -36.8 | -29.5 |
| Internal | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 428.9 | 368.7 | 431.6 | 442.1 | 650.4 | 520.4 | 492.4 | 439.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operatin | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| g profit | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| (EBIT) | | | | | | | | |
| by | | | | | | | | |
| Business | | | | | | | | |
| Area | | | | | | | | |
| excludin | | | | | | | | |
| g | | | | | | | | |
| restruc- | | | | | | | | |
| turing | | | | | | | | |
| costs | | | | | | | | |
--------------------------------------------------------------------------------
| Service | 19.4 | 16.4 | 18.9 | 18.8 | 33.3 | 27.1 | 23.5 | 22.2 |
--------------------------------------------------------------------------------
| Standard | 14.4 | 14.3 | 15.2 | 21.3 | 40.3 | 38.1 | 34.9 | 26.8 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| Heavy | 12.6 | 3.3 | 10.8 | 10.0 | 18.8 | 14.5 | 12.6 | 7.7 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| Group | -14.6 | -11.5 | -14.7 | -13.8 | -15.8 | -9.8 | -10.6 | -11.0 |
| costs | | | | | | | | |
--------------------------------------------------------------------------------
| Consolid | -4.5 | 1.6 | 0.5 | 0.5 | -0.1 | -1.0 | -2.0 | -0.7 |
| ation | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 27.3 | 24.0 | 30.7 | 36.8 | 76.5 | 69.0 | 58.3 | 45.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operatin | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| g | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| margin, | | | | | | | | |
| (EBIT %) | | | | | | | | |
| by | | | | | | | | |
| Business | | | | | | | | |
| Area | | | | | | | | |
| excludin | | | | | | | | |
| g | | | | | | | | |
| restruc- | | | | | | | | |
| turing | | | | | | | | |
| costs | | | | | | | | |
--------------------------------------------------------------------------------
| Service | 11.4 | 10.4 | 11.1 | 11.1 | 15.1 % | 14.5 % | 13.0 % | 13.4 % |
| | % | % | % | % | | | | |
--------------------------------------------------------------------------------
| Standard | 9.2 % | 9.6 % | 9.1 % | 12.0 | 15.7 % | 18.4 % | 17.1 % | 15.9 % |
| Lifting | | | | % | | | | |
--------------------------------------------------------------------------------
| Heavy | 9.8 % | 3.5 % | 8.5 % | 7.7 % | 8.6 % | 9.0 % | 8.7 % | 5.8 % |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Orders | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| received | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| by | | | | | | | | |
| Business | | | | | | | | |
| Area | | | | | | | | |
--------------------------------------------------------------------------------
| Service | 121.8 | 124.5 | 126.4 | 125.6 | 159.3 | 170.1 | 172.6 | 156.1 |
| 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Standard | 128.4 | 114.7 | 141.4 | 132.6 | 168.9 | 223.1 | 244.8 | 222.2 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| Heavy | 131.4 | 92.2 | 67.8 | 133.8 | 116.4 | 159.1 | 198.4 | 212.2 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| ./. | -20.5 | -22.9 | -26.0 | -22.3 | -35.1 | -36.3 | -36.5 | -28.2 |
| Internal | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 361.1 | 308.5 | 309.6 | 369.7 | 409.6 | 515.9 | 579.3 | 562.3 |
--------------------------------------------------------------------------------
| 1) Excl. | | | | | | | | |
| Service | | | | | | | | |
| Contract | | | | | | | | |
| Base | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| book by | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| Business | | | | | | | | |
| Area | | | | | | | | |
--------------------------------------------------------------------------------
| Service | 75.9 | 88.1 | 93.9 | 109.1 | 117.3 | 151.6 | 140.2 | 121.8 |
--------------------------------------------------------------------------------
| Standard | 192.1 | 217.3 | 244.6 | 281.0 | 327.9 | 418.2 | 387.8 | 338.4 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| Heavy | 353.8 | 347.4 | 357.9 | 420.3 | 420.2 | 531.7 | 528.0 | 476.5 |
| Lifting | | | | | | | | |
--------------------------------------------------------------------------------
| ./. | -14.8 | -14.3 | -15.8 | -18.5 | -29.1 | -36.4 | -28.3 | -27.0 |
| Internal | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 607.0 | 638.4 | 680.6 | 792.0 | 836.3 | 1065.2 | 1027.7 | 909.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales by | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| market | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Europe-M | 244.2 | 201.0 | 236.3 | 246.4 | 380.3 | 298.1 | 285.9 | 243.3 |
| iddle | | | | | | | | |
| East-Afr | | | | | | | | |
| ica | | | | | | | | |
| (EMEA) | | | | | | | | |
--------------------------------------------------------------------------------
| Americas | 113.7 | 111.9 | 121.2 | 132.7 | 178.1 | 144.1 | 125.1 | 144.3 |
| (AME) | | | | | | | | |
--------------------------------------------------------------------------------
| Asia-Pac | 71.1 | 55.7 | 74.0 | 63.0 | 92.0 | 78.3 | 81.5 | 51.5 |
| ific | | | | | | | | |
| (APAC) | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 428.9 | 368.7 | 431.6 | 442.1 | 650.4 | 520.4 | 492.4 | 439.2 |
--------------------------------------------------------------------------------
KONECRANES GROUP 2005 - 2009
--------------------------------------------------------------------------------
| Business | | 2009 | 2008 | 2007 | 2006 | 2005 |
| development | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Orders | MEUR | 1,348.9 | 2,067.1 | 1,872.0 | 1,472.8 | 1,061.2 |
| received | | | | | | |
--------------------------------------------------------------------------------
| Order book | MEUR | 607.0 | 836.3 | 757.9 | 571.6 | 432.1 |
--------------------------------------------------------------------------------
| Net sales | MEUR | 1,671.3 | 2,102.5 | 1,749.7 | 1,482.5 | 970.8 |
--------------------------------------------------------------------------------
| of which | MEUR | 1,575.1 | 1,979.6 | 1,652.2 | 1,396.0 | 883.7 |
| outside | | | | | | |
| Finland | | | | | | |
--------------------------------------------------------------------------------
| Export from | MEUR | 488.4 | 700.1 | 579.8 | 519.6 | 334.2 |
| Finland | | | | | | |
--------------------------------------------------------------------------------
| Personnel on | | 9,811 | 9,222 | 8,005 | 6,859 | 5,087 |
| average | | | | | | |
--------------------------------------------------------------------------------
| Personnel on | | 9,782 | 9,904 | 8,404 | 7,549 | 5,923 |
| 31 December | | | | | | |
--------------------------------------------------------------------------------
| Capital | MEUR | 25.7 | 22.3 | 25.2 | 16.3 | 16.0 |
| expenditure | | | | | | |
--------------------------------------------------------------------------------
| as a | % | 1.5% | 1.1% | 1.4% | 1.1% | 1.6% |
| percentage | | | | | | |
| of net sales | | | | | | |
--------------------------------------------------------------------------------
| Research and | MEUR | 22.0 | 19.0 | 16.2 | 12.5 | 8.8 |
| development | | | | | | |
| costs | | | | | | |
--------------------------------------------------------------------------------
| as % of Group | % | 1.3% | 0.9% | 0.9% | 0.8% | 0.9% |
| net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profitability | | | | | | |
--------------------------------------------------------------------------------
| Net sales | MEUR | 1,671.3 | 2,102.5 | 1,749.7 | 1,482.5 | 970.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | MEUR | 97.9 | 248.7 | 192.3 | 105.5 | 49.3 |
| profit | | | | | | |
| (including | | | | | | |
| restructuring | | | | | | |
| costs) | | | | | | |
--------------------------------------------------------------------------------
| as percentage | % | 5.9% | 11.8% | 11.0% | 7.1% | 5.1% |
| of net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income before | MEUR | 88.6 | 236.2 | 178.8 | 95.1 | 34.1 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| as percentage | % | 5.3% | 11.2% | 10.2% | 6.4% | 3.5% |
| of net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net income | MEUR | 62.5 | 166.6 | 129.2 | 68.6 | 24.1 |
| (incl. | | | | | | |
| minority) | | | | | | |
--------------------------------------------------------------------------------
| as percentage | % | 3.7% | 7.9% | 7.4% | 4.6% | 2.5% |
| of net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key figures | | | | | | |
| and balance | | | | | | |
| sheet | | | | | | |
--------------------------------------------------------------------------------
| Equity (incl. | MEUR | 407.1 | 400.7 | 280.8 | 223.7 | 152.1 |
| minority) | | | | | | |
--------------------------------------------------------------------------------
| Balance Sheet | MEUR | 1,060.4 | 1,205.4 | 956.9 | 919.0 | 724.0 |
--------------------------------------------------------------------------------
| Return on | % | 15.5 | 48.9 | 51.2 | 36.5 | 16.6 |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Return on | % | 19.3 | 56.3 | 50.4 | 29.5 | 17.2 |
| capital | | | | | | |
| employed | | | | | | |
--------------------------------------------------------------------------------
| Current ratio | | 1.4 | 1.5 | 1.3 | 1.4 | 1.1 |
--------------------------------------------------------------------------------
| Solidity | % | 45.1 | 39.9 | 36.1 | 28.3 | 23.7 |
--------------------------------------------------------------------------------
| Gearing | % | -19.1 | 2.8 | 7.0 | 57.3 | 88.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares in | | | | | | |
| figures | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | EUR | 1.08 | 2.83 | 2.17 | 1.17 | 0.43 |
| share. basic | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | EUR | 1.08 | 2.82 | 2.13 | 1.15 | 0.42 |
| share. diluted | | | | | | |
--------------------------------------------------------------------------------
| Equity per | EUR | 6.84 | 6.75 | 4.80 | 3.77 | 2.66 |
| share | | | | | | |
--------------------------------------------------------------------------------
| Cash flow per | EUR | 3.79 | 1.82 | 3.08 | 1.39 | 0.86 |
| share | | | | | | |
--------------------------------------------------------------------------------
| Dividend per | EUR | 0.90* | 0.90 | 0.80 | 0.45 | 0.28 |
| share | | | | | | |
--------------------------------------------------------------------------------
| Dividend / | % | 83.3 | 31.8 | 36.9 | 38.5 | 64.3 |
| earnings | | | | | | |
--------------------------------------------------------------------------------
| Effective | % | 4.7 | 7.5 | 3.4 | 2.0 | 2.6 |
| dividend yield | | | | | | |
--------------------------------------------------------------------------------
| Price / | | 17.7 | 4.3 | 10.9 | 19.1 | 24.3 |
| earnings | | | | | | |
--------------------------------------------------------------------------------
| Trading low / | EUR | 10.61/ | 9.90/ | 20.68/ | 10.23/ | 7.45/ |
| high | | 22.04 | 32.50 | 34.90 | 22.33 | 10.49 |
--------------------------------------------------------------------------------
| Average share | EUR | 16.66 | 21.05 | 27.41 | 15.04 | 8.94 |
| price | | | | | | |
--------------------------------------------------------------------------------
| Share price on | EUR | 19.08 | 12.08 | 23.58 | 22.30 | 10.41 |
| 31 December | | | | | | |
--------------------------------------------------------------------------------
| Year-end | MEUR | 1,122.1 | 713.6 | 1,379.6 | 1,322.0 | 594.1 |
| market | | | | | | |
| capitalization | | | | | | |
--------------------------------------------------------------------------------
| Number traded | (1,000) | 113,270 | 171,519 | 128,266 | 114,023 | 73,164 |
--------------------------------------------------------------------------------
| Stock turnover | % | 192.6 | 290.4 | 219.2 | 192.3 | 128.1 |
--------------------------------------------------------------------------------
| Average number | (1,000) | 58,922 | 58,726 | 59,609 | 58,383 | 56,496 |
| of shares | | | | | | |
| outstanding. | | | | | | |
| basic | | | | | | |
--------------------------------------------------------------------------------
| Average number | (1,000) | 59,086 | 58,987 | 60,507 | 59,736 | 57,632 |
| of shares | | | | | | |
| outstanding. | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
| Number of | (1,000) | 58,813 | 59,070 | 58,506 | 59,285 | 57,102 |
| shares | | | | | | |
| outstanding | | | | | | |
--------------------------------------------------------------------------------
* The Board's proposal to the AGM
CALCULATION OF KEY FIGURES
Return on equity (%) = Net profit for the period x 100 : Total equity (average
during the period)
Return on capital employed (%) = (Income before taxes + interest paid + other
financing cost) x 100 : (Total amount of equity and liabilities - non-interest
bearing debts (average during the period))
Current ratio = Current assets : Current liabilities
Solidity (%)= Shareholders' equity x 100 : (Total amount of equity and
liabilities - advance payment received)
Gearing (%) = (Interest-bearing liabilities - liquid assets - loans receivable)
x 100 : Total equity
Earnings per share = Net profit for the shareholders of the parent company :
Average number of shares outstanding
Earnings per share. diluted= Net profit for the shareholders of the parent
company : Average fully diluted number of shares outstanding
Equity per share = Equity attributable to the shareholders of the parent company
: Number of shares outstanding
Cash flow per share = Net cash flow from operating activities : Average number
of shares outstanding
Effective dividend yield (%) = Dividend per share x 100 : Share price at the end
of financial year
Price per earnings = Share price at the end of financial year : Earnings per
share
Year -end market capitalization = Number of shares outstanding multiplied by the
share price at the end of year
Average number of personnel = Calculated as average of number of personnel in
quarters
Number of shares outstanding = Number of all shares - treasury shares - shares
owned by KCR Management Oy
Analyst and press briefing
An analyst and press conference will be held in the G.W. Sundmans Auditorium
(address Eteläranta 16. Helsinki) at 12.00 p.m. Finnish time. The financial
statements will be presented by Konecranes' President and CEO Pekka Lundmark and
CFO Teo Ottola. A live webcast of the conference with the opportunity to ask
questions on the web will begin at 12.00 p.m. at www.konecranes.com. An
on-demand version of the webcast will be available on the company's website
later the same day.
Next report
Konecranes' January-March 2010 interim report will be published on April 28.
2010.
Sender:
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
For further information, please contact:
Mr Pekka Lundmark, President and CEO, tel. +358 20 427 2000
Mr Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr Mikael Wegmüller,Vice President, Marketing and Communications, tel. +358 20
427 2008
Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2009, Group sales totaled EUR 1,671 million. The Group has 9,800
employees at 545 locations in 43 countries. Konecranes is listed on the NASDAQ
OMX Helsinki Ltd (symbol: KCR1V).
Distribution
Media
NASDAQ OMX Helsinki Exchange
www.konecranes.com
