Figures in brackets, unless otherwise stated, refer to the same period a year earlier
FIRST QUARTER HIGHLIGHTS
- Order intake EUR 320.6 million (369.7), -13.3 percent: Service +11.3 percent and Equipment –25.7 percent.
- Order book EUR 641.3 million (792.0) at end March, 19.0 percent lower than a year ago, 5.7 percent higher than at end 2009.
- Sales EUR 306.3 million (442.1), -30.7 percent: Service -12.8 percent and Equipment –39.0 percent.
- Cost reduction according to plan.
- Operating profit EUR 11.6 million (36.8), 3.8 percent of sales (8.3).
- Earnings per share (diluted) EUR 0.15 (0.43).
- Net cash EUR 46.6 million (net debt of 37.8) and gearing –12.4 percent (10.0).
FUTURE PROSPECTS
Konecranes reiterates the previous guidance for the year 2010 for sales and operating profit, but changes the Service demand outlook as a result of improved market situation. The new guidance is:
Konecranes expects the market uncertainty to continue. However, the demand outlook for maintenance services has improved as a result of higher capacity utilization within customer industries. The demand for new equipment is expected to remain generally on a low level, and to suffer because of overcapacity at customers. Price competition is likely to remain. A high degree of fluctuation between quarters may continue due to the timing of orders.
Due to the lower order book compared to a year ago, 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.
The previous statement on the future prospects from February 4, 2010
was:
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.
THE WHOLE RELEASE WITH TABLES CAN BE FOUND AS ATTACHMENT
