Figures in brackets, unless otherwise stated, refer to the same period in the previous year.
THIRD QUARTER HIGHLIGHTS
- Order intake EUR 458.5 million (373.4), +22.8 percent; Service +3.5 percent and Equipment +31.7 percent.
- Order book EUR 1,040.1 million (679.7) at end-September, 53.0 percent higher than a year ago, 6.0 percent higher than at end-June 2011.
- Sales EUR 450.9 million (393.6), +14.6 percent; Service +13.2 percent and Equipment +9.9 percent.
- Operating profit EUR 26.0 million (34.3), 5.8 percent of sales (8.7).
- Earnings per share (diluted) EUR 0.31 (0.39).
- Net cash flow from operating activities EUR -1.6 million (32.1).
- Net debt EUR 203.3 million (0.7) and gearing 49.7 percent (0.2).
JANUARY-SEPTEMBER HIGHLIGHTS
- Order intake EUR 1,422.2 million (1,058.3), +34.4 percent; Service +13.3 percent and Equipment +48.8 percent.
- Sales EUR 1,298.2 million (1,076.9), +20.6 percent; Service +13.1 percent and Equipment +22.3 percent.
- Operating profit EUR 69.7 million (66.6), 5.4 percent of sales (6.2). Comparison period included restructuring costs of EUR 2.7 million.
- Earnings per share (diluted) EUR 0.70 (0.80).
- Net cash flow from operating activities EUR -31.2 million (26.2).
MARKET OUTLOOK
Forecasting the demand continues to be challenging due to the macroeconomic uncertainties caused by the budget deficits and the level of public debt in Europe and the US. We have started to see signs of a weakening demand, but the level of new inquiries is still reasonably good.
FINANCIAL GUIDANCE
We forecast the 2011 operating profit, excluding possible restructuring costs, to be approximately on the same level as in 2010. Sales are expected to be higher than in 2010.
Business Area Service operating profit in 2011 is expected to fall short of 2010 level. The 2011 operating profit of the Business Area Equipment is forecasted to increase from 2010.
PRESIDENT AND CEO PEKKA LUNDMARK,
I am obviously not satisfied with our third quarter as a whole, and the main concern is lower-than-planned operating profit in Service. We have invested a lot in growth: system and technology development, service network expansion and training in order to be able to deliver higher value services and higher volumes. These are all good investments, but now when the realized growth is lagging behind expectations we are reconsidering certain parts of our plan. We will initiate actions in the fourth quarter to lower fixed costs in the Service business, especially in Europe.
On balance, there is a lot of positive news in the quarter as well. Our total order intake, EUR 459 million, is 23 percent higher than a year ago. I am satisfied with the margin level in these orders. In general, our equipment business is progressing according to the plan and the strong order book in that business gives us visibility and some time to adjust should the recent negative trend in the world economy continue.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at restaurant Savoy´s Salicabinet (address Eteläesplanadi 14, 7th floor) 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 of October 6, 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 11,400 employees at 578 locations in 46 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
Media
NASDAQ OMX Helsinki
www.konecranes.com
