KONECRANES PLC INTERIM REPORT October 21, 2010 at 9:30 a.m. Finnish time
ORDER GROWTH BOTH IN SERVICE AND EQUIPMENT
Figures in brackets, unless otherwise stated, refer to the same period in the previous year.
THIRD QUARTER HIGHLIGHTS
- Order intake EUR 373.4 million (308.5), +21.0 percent: Service +22.4 percent and Equipment +16.5 percent.
- Order book EUR 679.7 million (638.4) at end-September, 6.5 percent higher than a year ago, 0.8 percent lower than at end-June 2010.
- Sales EUR 393.6 million (368.7), +6.8 percent: Service +9.9 percent and Equipment +8.2 percent.
- Operating profit EUR 34.3 million (10.2), 8.7 percent of sales (2.8). Comparison period included restructuring costs of EUR 13.9 million.
- Earnings per share (diluted) EUR 0.39 (0.08).
- Net cash flow from operating activities EUR 32.1 million (66.2).
- Net debt EUR 0.7 million (-14.9) and gearing 0.2 percent (-3.8).
JANUARY-SEPTEMBER HIGHLIGHTS
- Order intake EUR 1,058.3 million (987.7), +7.1 percent: Service +19.8 percent and Equipment –2.5 percent.
- Sales EUR 1,076.9 million (1,242.4), -13.3 percent: Service -0.1 percent and Equipment -20.6 percent.
- Operating profit before restructuring costs EUR 69.2 million (91.6), 6.4 percent (7.4) of sales.
- Restructuring costs EUR 2.7 million (15.8).
- Operating profit, including restructuring costs, EUR 66.6 million (75.8), 6.2 percent of sales (6.1).
- Earnings per share (diluted) EUR 0.80 (0.84).
- Net cash flow from operating activities EUR 26.2 million (133.2).
From this report, Konecranes separates the market outlook describing the expected demand from financial guidance.
MARKET OUTLOOK
The demand for maintenance services is expected to continue to be above last year’s level due to higher capacity utilization within customer industries. The demand for new equipment is expected to remain robust in Asia-Pacific and in emerging markets in general while customers’ decision-making is still conditional on the sustainability of economic growth in western Europe and North America. Price competition is likely to remain.
FINANCIAL GUIDANCE
Konecranes reiterates the previous guidance for the year 2010 for sales and operating profit:
Growing demand will support our sales and profitability already during the second half of 2010. However, due to the low first half year sales we expect full year 2010 sales to be lower than in 2009. We expect the operating profit in 2010 to be lower than in 2009 before restructuring costs.
THE WHOLE RELEASE WITH TABLES CAN BE FOUND AS ATTACHMENT
