Figures in brackets, unless otherwise stated, refer to the same period a year earlier
SECOND QUARTER HIGHLIGHTS
- Order intake EUR 452.8 million (364.4), +24.3 percent; Service +17.1 percent and Equipment +34.7 percent.
- Order book EUR 981.0 million (685.2) at end-June, 43.2 percent higher than a year ago, 2.6 percent higher than at end-March 2011.
- Sales EUR 459.5 million (377.0), +21.9 percent; Service +10.8 percent and Equipment +30.4 percent.
- Operating profit EUR 25.1 million (20.7), 5.5 percent of sales (5.5). Comparison period included restructuring costs of EUR 2.7 million.
- Earnings per share (diluted) EUR 0.26 (0.25).
- Net cash flow from operating activities EUR -27.5 million (-6.3).
- Net debt EUR 116.0 million (19.0) and gearing 26.4 percent (4.7).
JANUARY-JUNE HIGHLIGHTS
- Order intake EUR 963.7 million (684.9), +40.7 percent; Service +18.3 percent and Equipment +58.6 percent.
- Sales EUR 847.3 million (683.3), +24.0 percent; Service +13.0 percent and Equipment +29.9 percent.
- Operating profit EUR 43.6 million (32.3), 5.2 percent of sales (4.7). Comparison period included restructuring costs of EUR 2.7 million.
- Earnings per share (diluted) EUR 0.40 (0.41).
- Net cash flow from operating activities EUR -29.6 million (-5.8).
MARKET OUTLOOK
Forecasting the demand has become more challenging due to the macroeconomic uncertainties caused by the budget deficits and the level of public debt in Europe and the US. Despite the aforesaid, the demand for maintenance services is expected to be above last year’s level due to the 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.
PRESIDENT AND CEO PEKKA LUNDMARK:
We can be satisfied with our top line growth and, in particular, with the fact that our order book is now 43.2 percent stronger than a year ago. A tight pricing environment and the cost inflation in combination with our own decisions to increase technology and IT development spending to ensure our competitiveness in the long run is, unfortunately, slowing down the bottom line growth. Increasing prices wherever possible and a tight cost control are clear priorities for us right now.
The ongoing consolidation of our industry took a significant step forward through the acquisition of the majority of Demag Cranes AG by Terex Corporation. We were of course following the situation very closely, but decided after a thorough assessment not to issue a competing offer. Several factors contributed to this conclusion, including (1) historical performance and a predominantly European asset base that did not, in our view, warrant the required price when the world’s industrial growth is more and more driven by emerging markets,(2) the uncertain economic outlook, especially within the eurozone, and (3) uncertainty over potential antitrust risks.
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 July 7, 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 almost 11,200 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
