KONECRANES PLC INTERIM REPORT July 22, 2010 at 9:30 a.m.
ORDER GROWTH IN SERVICE, SIGNS OF GROWTH ALSO IN EQUIPMENT
Figures in brackets, unless otherwise stated, refer to the same period a year earlier
SECOND QUARTER HIGHLIGHTS
-Order intake EUR 364.4 million (309.6), +17.7 percent: Service +25.9 percent and Equipment +8.4 percent.
- Order book EUR 685.2 million (680.6) at end June, 0.7 percent higher than a year ago, 6.8 percent higher than at end-March 2010.
- Sales EUR 377.0 million (431.6), -12.6 percent: Service +3.4 percent and Equipment -24.4 percent.
- Operating profit before restructuring costs EUR 23.4 million (30.7), 6.2 percent (7.1) of sales.
- Restructuring costs EUR 2.7 million (1.9).
- Operating profit, including restructuring costs, EUR 20.7 million (28.8), 5.5 percent of sales (6.7).
- Earnings per share (diluted) EUR 0.25 (0.33).
- Net cash flow from operating activities EUR -6.3 million (34.4).
- Net debt EUR 19.0 million (35.5) and gearing 4.7 percent (9.1).
JANUARY-JUNE HIGHLIGHTS
- Order intake EUR 684.9 million (679.3), +0.8 percent: Service +18.6 percent and Equipment –10.9 percent.
- Sales EUR 683.3 million (873.7), -21.8 percent: Service -4.7 percent and Equipment -31.8 percent.
- Operating profit before restructuring costs EUR 35.0 million (67.5), 5.1 percent (7.7) of sales.
- Restructuring costs EUR 2.7 million (1.9).
- Operating profit, including restructuring costs, EUR 32.3 million (65.6), 4.7 percent of sales (7.5).
- Earnings per share (diluted) EUR 0.41 (0.76).
- Net cash flow from operating activities EUR -5.8 million (67.0).
FUTURE PROSPECTS
Konecranes reiterates the previous guidance for the year 2010 for sales and operating profit, but changes the Equipment demand outlook as a result of improved market situation. The new guidance is:
The demand for maintenance services is supported by higher capacity utilization within customer industries. The improved industrial production and container handling volumes have increased customers’ willingness to invest in new equipment too, but the decision-making is still conditional on the sustainability of economic growth. Price competition is likely to remain.
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 previous statement on future prospects from April 28, 2010 was:
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.
