STRONG ORDER INTAKE, OPERATING PROFIT IMPROVING
KONECRANES PLC INTERIM REPORT April 28, 2011 at 9:00 a.m.
Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
FIRST QUARTER HIGHLIGHTS
- Order intake EUR 510.9 million (320.6), +59.4 percent; Service +19.6 percent and Equipment +85.4 percent.
- Order book EUR 956.6 million (641.3) at the end of March, 49.2 percent higher than a year ago, 26.5 percent higher than at the end of 2010.
- Sales EUR 387.8 million (306.3), +26.6 percent; Service +15.5 percent and Equipment +29.4 percent.
- Operating profit EUR 18.5 million (11.6), +60.0 percent; 4.8 percent of sales (3.8).
- Earnings per share (diluted) EUR 0.14 (0.15).
- Net debt EUR 7.0 million (-46.6) and gearing 1.7 percent (–12.4).
MARKET OUTLOOK
The demand for maintenance services is expected to be above last year’s level due to higher capacity utilization within customer industries. Also, the demand for new equipment is expected to grow compared to last year. However, due to the timing of large port crane projects, the quarterly Equipment order intake may fluctuate significantly.
FINANCIAL GUIDANCE
We forecast year 2011 sales and operating profit to be higher than in 2010. The increased technology and IT development will add approximately EUR 20 million to our cost base from 2011 while the benefits will follow from 2012 onwards.
PREVIOUS FINANCIAL GUIDANCE
We forecast year 2011 sales and operating profit to be higher than in 2010.
| KEY FIGURES | |||||
| 1-3/2011 | 1-3/2010 | Change % | R12M | 2010 | |
| Orders received, MEUR | 510.9 | 320.6 | 59.4 | 1,726.3 | 1,536.0 |
| Order book at end of period, MEUR | 956.6 | 641.3 | 49.2 | 756.2 | |
| Sales total, MEUR | 387.8 | 306.3 | 26.6 | 1,627.8 | 1,546.3 |
| Operating profit excluding restructuring costs, MEUR | 18.5 | 11.6 | 60.0 | 122.0 | 115.1 |
| Operating margin excluding restructuring costs, % | 4.8% | 3.8% | 7.5% | 7.4% | |
| Operating profit including restructuring costs, MEUR | 18.5 | 11.6 | 60.0 | 119.4 | 112.4 |
| Operating margin including restructuring costs, % | 4.8% | 3.8% | 7.3% | 7.3% | |
| Profit before taxes, MEUR | 11.8 | 12.4 | -5.0 | 110.7 | 111.3 |
| Net profit for the period, MEUR | 8.3 | 8.8 | -5.4 | 77.7 | 78.2 |
| Earnings per share, basic, EUR | 0.14 | 0.15 | -5.1 | 1.34 | 1.35 |
| Earnings per share, diluted, EUR | 0.14 | 0.15 | -6.1 | 1.33 | 1.34 |
| Gearing, % | 1.7% | -12.4% | -3.8% | ||
| Return on capital employed %, Rolling 12 Months (R12M) | 25.1% | 24.2% | |||
| Average number of personnel during the period | 10,370 | 9,672 | 7.2 | 9,739 |
President and CEO Pekka Lundmark:
”We are pleased with the development of demand during the first quarter of 2011. Our order intake, boosted by several large port crane projects, was the fourth highest in our history. Also the demand for industrial cranes, lift trucks and maintenance services developed in a promising manner. As is typical for the beginning of the year, our deliveries were low. This seasonality, in combination with weaker product mix and the earlier announced higher technology and IT development spending, held back our margin improvement. Even though the operating profit increased by a solid 60 percent from the first quarter of 2010, the 4.8 percent margin (3.8 percent a year ago) was somewhat behind our own targets. Our strong order book gives a good reason for optimism for the upcoming quarters, but uncertainties concerning the world economic development in general and the growing inflationary pressures in particular, also call for some caution in business planning.”
NEW DISCLOSURE PROCEDURE
Konecranes Plc follows the new disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its interim report enclosed to this stock exchange release. Konecranes Plc’s interim report is attached to this release in pdf format and is also available on the company’s web site at www.konecranes.com.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at G.W. Sundmans’ Auditorium (address Eteläranta 16) at 11.00 a.m. Finnish time. The Interim Report will be presented by Konecranes’ President and CEO Pekka Lundmark and CFO Teo Ottola.
A live webcast of the conference will begin at 11.00 a.m. at www.konecranes.com. Please see the stock exchange release dated April 14, 2011 for the conference call details.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
Mr Pekka Lundmark, President and CEO, tel. +358 20 427 2000
Mr Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr Mikael Wegmüller, Vice President, Marketing and Communications, tel. +358 20 427 2008
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2010, Group sales totaled EUR 1,546 million. The Group has 10,000 employees at 578 locations in 46 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
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www.konecranes.com