Konecranes is introducing new reporting segments. From the beginning of 2010, Konecranes will report two Business Areas: Service and Equipment. Previously the number of reporting segments was three: Service, Standard Lifting and Heavy Lifting. More information than before will be provided for each segment, and the allocation of Group costs into the segments has been redefined to improve transparency.
Konecranes changed its structure from the beginning of 2010 so that Business Areas Standard Lifting and Heavy Lifting were merged into one Business Area: Equipment. Business Area Equipment is internally further divided into five Business Units: Industrial Cranes, Components, Port Cranes, Lifttrucks and Nuclear Cranes. The reason for the change is the development in both customers’ buying behaviour and Konecranes’ technology and supply platforms, which made the previous way of dividing the equipment offering into Standard Lifting and Heavy Lifting not optimal. There are no changes in the structure of Business Area Service.
Business Area Service is headed by Hannu Rusanen, Executive Vice President, and Business Area Equipment by Mikko Uhari, Executive Vice President.
External segment reporting will also be changed to match with the operational structure of the group. From 2010, Konecranes will be reporting two segments, Service and Equipment. While the number of segments will be reduced from three to two, Konecranes will disclose more information than before about the segments on a quarterly basis. The new information includes EBITDA, depreciation and impairments, capital employed, ROCE and capital expenditure. To further improve the transparency of segment profitability, the allocation of Group costs into the business areas has been redefined. Previously, centralized Market Operations, procurement, R&D and IT costs were reported as unallocated group costs. From 2010 these costs will be fully allocated to the business areas. The reporting of centralized legal, marketing & communications, finance, HR and general management costs will remain unchanged and these will continue to be shown as unallocated group costs. Additionally, the reporting of elimination of internal margins (consolidation items) in inventories will change as a result of fewer segments and internal margins within the business areas being incorporated in the operating profit of the respective business area. In 2009, the reported unallocated group costs and consolidation items totaled EUR 56.5 million whereas the corresponding restated figure is EUR 18.9 million.
The whole release with tables can be found as attachment.
Additional information:
Investors and analysts:
Teo Ottola, CFO, Konecranes Plc
Email: [email protected], or tel. +358 20 427 2040
(after 3.00 pm Finnish time)
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc
Email: [email protected], or tel. +358 20 427 2050
Press
Mikael Wegmüller, Vice President, Marketing and Communications, Konecranes Plc
Email: [email protected], or 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).
