Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
FOURTH QUARTER HIGHLIGHTS
- Order intake EUR 473.9 million (477.7), -0.8 percent: Service +18.7 percent and Equipment -9.5 percent.
- Order book EUR 991.8 million (756.2) at year-end, +31.2 percent compared with a year before.
- Sales EUR 598.2 million (469.4), +27.4 percent: Service +11.1 percent and Equipment +36.7 percent.
- Operating profit before restructuring costs EUR 47.5 million (45.8), 7.9 percent (9.8) of sales.
- Restructuring costs EUR 10.3 million (0.0).
- Operating profit, including restructuring costs, EUR 37.2 million (45.8), 6.2 percent of sales (9.8).
- Earnings per share (diluted) EUR 0.39 (0.55).
- Net cash flow from operating activities EUR 10.4 million (31.2).
- Net debt EUR 219.8 million (-17.4) and gearing 50.1 percent (-3.8).
FULL YEAR 2011 HIGHLIGHTS
- Orders received EUR 1,896.1 million (1,536.0), +23.4 percent: Service +14.7 percent and Equipment +28.5 percent.
- Sales EUR 1,896.4 million (1,546.3), +22.6 percent: Service +12.5 percent and Equipment +26.6 percent.
- Operating profit before restructuring costs EUR 117.2 million (115.1), 6.2 percent (7.4) of sales.
- Restructuring costs EUR 10.3 million (2.7).
- Operating profit, including restructuring costs, EUR 106.9 million (112.4), 5.6 percent of sales (7.3).
- Earnings per share (diluted) EUR 1.10 (1.34).
- Net cash flow from operating activities EUR -20.8 million (57.4).
- Dividend proposed by Board of Directors is EUR 1.00 (1.00) per share.
MARKET OUTLOOK
Forecasting the demand continues to be challenging due to the macroeconomic uncertainties. Based on the current offer base, the demand outlook is stable. However, due to the timing of large port crane projects, the quarterly Equipment order intake may fluctuate.
FINANCIAL GUIDANCE
Based on the order book, we forecast year 2012 sales and operating profit to be higher than in 2011.
PRESIDENT AND CEO PEKKA LUNDMARK,
After the first three quarters of 2011 with only mediocre result development, we were able to significantly improve our result during the fourth quarter. Strong delivery volumes generated an operating profit of EUR 47.5 million before restructuring costs, clearly the highest in 2011. As preliminarily communicated in connection with the Q3 report, we also announced certain restructuring measures during the fourth quarter, which resulted in one-time charges of EUR 10.3 million in the quarter. Full-year 2011 operating profit before restructuring costs was marginally higher than in 2010. All in all, we are satisfied with our top-line growth and market share in 2011, but not with the profit.
We have successfully increased our prices to compensate for the increased costs. However, the competitive situation remains tough in the most parts of the world. We are also actively reducing our fixed cost in places where growth opportunities are limited, Western Europe being the most apparent one.
We started the year 2012 with an order book that was 31.2 percent higher than a year ago. That gives us good visibility for the first half of the year. Right now, the level of new inquires is also reasonably good, but it is very hard to forecast the second half of 2012. It is important for us that the ability of our customers to obtain financing is not hurt by the consequences of the public debt crisis in the Western world. We forecast that both our sales and operating profit in 2012 will increase from 2011.
BOARD OF DIRECTORS’ PROPOSAL FOR DISPOSAL OF DISTRIBUTABLE FUNDS
The parent company’s non-restricted equity is EUR 135,183,409.18 of which the net income for the year is EUR 40,050,228.07. The Group’s non-restricted equity is EUR 366,767,000.
According to the Finnish Companies Act, the distributable funds of the company are calculated based on the parent company’s non-restricted equity. For the purpose of determining the amount of the dividend the Board of Directors has assessed the liquidity of the parent company and the economic circumstances subsequent to the financial year end.
Based on such assessments the Board of Directors proposes to the Annual General Meeting that a dividend of EUR 1.00 be paid on each share and that the remaining non-restricted equity is retained in shareholders’ equity.
CORPORATE GOVERNANCE STATEMENT 2011
Konecranes complies with the Finnish Corporate Governance Code 2010 approved by the Board of the Securities Market Association. Konecranes has issued a Corporate Governance Statement based on the recommendation 54 of the Code, which is attached to this release in pdf format and can be reviewed on the corporate website of Konecranes at www.konecranes.com.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at restaurant G.W. Sundmans’ Auditorium (address Eteläranta 16) at 11.00 a.m. Finnish time. The Financial Statements 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 on January 13, 2012 for the conference call details.
NEXT REPORT
Konecranes’ January-March 2012 interim report will be published on April 25, 2012.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
For Further Information, Please Contact:
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 2011, Group sales totaled EUR 1,896 million. The Group has 11,700 employees at 609 locations in 47 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
NASDAQ OMX Helsinki
Media
www.konecranes.com
