Konecranes Oyj - Interim report (Q1 and Q3)

Konecranes Plc: Interim report, January-March 2024: Record-high Q1 profitability

KONECRANES PLC INTERIM REPORT, JANUARY-MARCH 2024 APRIL 25, 2024 8:30 am EEST

Konecranes Plc: Interim report, January-March 2024: Record-high Q1 profitability

Record-high Q1 profitability

This release is a summary of Konecranes Plc's Interim report, January-March
2024. The complete report is attached to this release in pdf format and is also
available on Konecranes' website at www.konecranes.com.

The figures presented in this report are unaudited. Figures in brackets, unless
otherwise stated, refer to the same period a year earlier.

Konecranes has made changes in reporting Industrial Equipment's order intake and
net sales. The change also impacts Industrial Equipment's profitability. The
previous year's figures presented in this release have been restated and are
fully comparable with the current year figures.

FIRST QUARTER HIGHLIGHTS

- Order intake EUR 909.1 million (1,289.6), -29.5 percent (-29.0 percent on a
comparable currency basis), order intake increased in Service but decreased in
Port Solutions and Industrial Equipment

- Service annual agreement base value EUR 326.0 million (311.1), +4.8 percent
(+5.3 percent on a comparable currency basis)

- Service order intake EUR 388.5 million (378.8), +2.6 percent (+3.7 percent on
a comparable currency basis)

- Order book EUR 3,046.4 million (3,281.4) at the end of March, -7.2 percent (
-6.8 percent on a comparable currency basis)

- Sales EUR 913.1 million (899.3), +1.5 percent (+2.5 percent on a comparable
currency basis), sales increased in Service and Port Solutions but decreased in
Industrial Equipment

- Comparable EBITA margin 11.1 percent (10.6) and comparable EBITA EUR 101.8
million (95.4); the increase in the comparable EBITA margin was mainly
attributable to higher productivity and pricing

- Operating profit EUR 89.1 million (85.8), 9.8 percent of sales (9.5), items
affecting comparability totaled EUR 4.8 million (2.6), mainly comprising of
restructuring costs

- Earnings per share (diluted) EUR 0.75 (0.66)

- Free cash flow EUR 48.8 million (116.0)

- Net debt EUR 334.7 million (586.1) and gearing 21.8 percent (42.3)

DEMAND OUTLOOK

Our demand environment within industrial customer segments has remained good and
continues on a healthy level.

Global container throughput continues on a high level, and long-term prospects
related to global container handling remain good overall.

FINANCIAL GUIDANCE

Konecranes expects net sales to remain approximately on the same level or to
increase in 2024 compared to 2023. Konecranes expects the comparable EBITA
margin to remain approximately on the same level or to improve in 2024 compared
to 2023.

KEY FIGURES

+----------------------+-------+-------+------+-------+-------+
|                      |1-3/   |1-3/   |Change|R12M   |  1-12/|
|                      |       |       |      |       |       |
|                      |2024   |2023   |%     |       |2023   |
+----------------------+-------+-------+------+-------+-------+
|Orders received, MEUR |909.1  |1,289.6|-29.5 |3,780.9|4,161.4|
+----------------------+-------+-------+------+-------+-------+
|Order book at end of  |3,046.4|3,281.4|-7.2  |       |3,040.8|
|period, MEUR          |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Sales total, MEUR     |913.1  |899.3  |1.5   |3,980.2|3,966.3|
+----------------------+-------+-------+------+-------+-------+
|Comparable EBITDA,    |124.4  |117.9  |5.5   |541.5  |535.0  |
|MEUR 1                |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Comparable EBITDA, % 1|13.6%  |13.1%  |      |13.6%  |13.5%  |
+----------------------+-------+-------+------+-------+-------+
|Comparable EBITA, MEUR|101.8  |95.4   |6.7   |457.1  |450.7  |
|1                     |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Comparable EBITA, % 1 |11.1%  |10.6%  |      |11.5%  |11.4%  |
+----------------------+-------+-------+------+-------+-------+
|Comparable operating  |93.9   |88.4   |6.3   |425.2  |419.7  |
|profit, MEUR 1        |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Comparable operating  |10.3%  |9.8%   |      |10.7%  |10.6%  |
|margin, % 1           |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Operating profit, MEUR|89.1   |85.8   |3.9   |405.8  |402.5  |
+----------------------+-------+-------+------+-------+-------+
|Operating margin, %   |9.8%   |9.5%   |      |10.2%  |10.1%  |
+----------------------+-------+-------+------+-------+-------+
|Profit before taxes,  |79.5   |72.2   |10.1  |374.9  |367.6  |
|MEUR                  |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Net profit for the    |59.3   |52.7   |12.5  |282.2  |275.6  |
|period, MEUR          |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Earnings per share,   |0.75   |0.67   |12.5  |3.56   |3.48   |
|basic, EUR            |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Earnings per share,   |0.75   |0.66   |12.5  |3.55   |3.46   |
|diluted, EUR          |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Gearing, %            |21.8%  |42.3%  |      |       |22.9%  |
+----------------------+-------+-------+------+-------+-------+
|Net debt / Comparable |0.6    |1.3    |      |       |0.7    |
|EBITDA, R12M 1        |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Return on capital     |       |       |      |17.6%  |16.4%  |
|employed, %           |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Comparable return on  |       |       |      |18.9%  |17.7%  |
|capital employed, % 2 |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+
|Free cash flow, MEUR  |48.8   |116.0  |      |444.1  |511.4  |
+----------------------+-------+-------+------+-------+-------+
|Average number of     |16,570 |16,551 |0.1   |       |16,503 |
|personnel during the  |       |       |      |       |       |
|period                |       |       |      |       |       |
+----------------------+-------+-------+------+-------+-------+

1) Excluding items affecting comparability, see also note 11 in the summary
financial statements

2) ROCE excluding items affecting comparability, see also note 11 in the summary
financial statements

CEO ANDERS SVENSSON:

Konecranes had a good Q1. Group order intake remained healthy, and our delivery
capability continued on a good level. Profitability improved year-on-year, and
we posted a record-high Q1 comparable EBITA margin - 11.1%. Performance was
particularly strong in Service.

Our demand environment remained healthy in Q1 despite a year-on-year order
intake decrease of 29.0% on a comparable currency basis. The comparison period
was strong in Industrial Equipment and Port Solutions, as we received
exceptionally large single orders in both businesses. Our orderbook totaled €3.0
billion at the end of March, 6.8% lower than a year ago on a comparable currency
basis.

Delivery capability continued at the same good level as in previous quarters.
Group sales exceeded €913 million and were 2.5% higher versus a year ago on a
comparable currency basis. Our Q1 sales were negatively affected by the strikes
in the Finnish ports, the delay impact being some €15-20 million, mainly in
Industrial Equipment.

Comparable EBITA margin improved year-on-year and was 11.1%, mainly driven by
productivity improvement and pricing. Profitability improved year-on-year in
Service and Port Solutions but declined in Industrial Equipment.

Turning to our Business Segments, Service had a strong quarter. Order intake
increased 3.7% year-on-year in comparable currencies. Sales increased 5.1% year
-on-year in comparable currencies. The comparable EBITA margin improved year-on
-year to 19.9%, a new record for Q1, mainly driven by higher productivity and
pricing. The agreement base value continued to grow and in comparable currencies
was 5.3% higher at the end of Q1 versus a year ago.

Industrial Equipment's external orders decreased 29.7% in comparable currencies
against a strong comparison period. Sequentially, external orders increased
10.8%. External sales decreased by 7.6% year-on-year in comparable currencies.
Following the sales decline, the comparable EBITA margin decreased year-on-year
to 6.5%. Our Industrial Service and Equipment optimization program continued to
progress, and we booked €3.8 million of restructuring costs in Industrial
Equipment, mainly related to headcount reduction in India. As a result, we have
updated our restructuring cost estimate to €40-50 million from the earlier €30
-40 million.  So far, we have booked approximately €40 million of restructuring
costs.

In Port Solutions, order intake totaled €248 million, decreasing 51.4% year-on
-year in comparable currencies versus a record-high comparison period. Sales
execution continued to improve, and sales grew 10.2% year-on-year in comparable
currencies. Comparable EBITA margin improved to 7.1%, mainly due to higher sales
volumes. We also received an R&D subsidy of €2.1 million. Port Solutions ended
the quarter with an orderbook value of over EUR 1.6 billion.

As a part of our continuous efforts to optimize our business and supply chain,
we have investigated different options for our straddle carrier manufacturing
operations in Würzburg, Germany. At the moment, our priority is to find a new
owner for the site to outsource our straddle carrier manufacturing, but we
cannot rule out a possible ramp-down of production. In any case, we will
continue to be a leading provider of straddle carriers and related services in
the future, but in ways that fully leverage our existing global supply chain
footprint.

As for the outlook, we expect the demand environment within our industrial
customers to remain healthy. Regarding our port customers, container throughput
continues to be on a high level, and long-term prospects related to container
handling remain good. Our Port Solutions sales pipeline includes a good mix of
projects of all sizes. Quarterly order intake fluctuation is normal for the
business, as the booking of orders depends on the timing of customer decision
-making.

We also reiterate our financial guidance for 2024. We expect our net sales and
comparable EBITA margin to remain on the same level or to increase in 2024
compared to 2023.

Overall, Konecranes had a good start to the new year. Our Q1 provides a solid
foundation for the whole year's performance, and I am proud of the hard work and
dedication of our team. We have all the ingredients in place for another good
year.

ANALYST AND PRESS BRIEFING

A live international webcast and telephone conference for analysts, investors
and media will be arranged today at 11:00 a.m. EEST. The event will be held in
English. The interim report will be presented by President and CEO Anders
Svensson and CFO Teo Ottola. Questions may be presented at the end of the
conference. The conference will be recorded, and an on-demand version of the
conference will be published on the company's website later during the day.

The webcast can be watched through the following link:

https://konecranes.videosync.fi/q1-2024

To ask questions, the telephone conference can be joined by registering through
the following link:

https://palvelu.flik.fi/teleconference/?id=50049971

Phone numbers and the conference ID to access the conference will be provided
after the registration. In case you would like to ask a question during the
conference, please dial *5 on your telephone keypad to enter the question queue.

Questions can also be presented in writing through the question form, while
watching the webcast.

NEXT REPORT

Konecranes Plc will publish its Half-year financial report, January-June 2024 on
July 26, 2024.

KONECRANES PLC

Kiira Fröberg

Vice President, Investor Relations

FURTHER INFORMATION

Kiira Fröberg,

Vice President, Investor Relations,

tel. +358 (0) 20 427 2050

IMPORTANT NOTICE

The information in this release contains forward-looking statements, which are
information on Konecranes' current expectations and projections relating to its
financial condition, results of operations, plans, objectives, future
performance and business. These statements may include, without limitation, any
statements preceded by, followed by or including words such as “target,”
“believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,”
“project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other
words and terms of similar meaning or the negative thereof. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Konecranes' control that could cause Konecranes' actual results,
performance or achievements to be materially different from the expected
results, performance or achievements expressed or implied by such forward
-looking statements. Such forward-looking statements are based on numerous
assumptions regarding Konecranes' present and future business strategies and the
environment in which it will operate in the future.

Konecranes is a global leader in material handling solutions, serving a broad
range of customers across multiple industries. We consistently set the industry
benchmark, from everyday improvements to the breakthroughs at moments that
matter most, because we know we can always find a safer, more productive and
sustainable way. That's why, with around 16,600 professionals in over 50
countries, Konecranes is trusted every day to lift, handle and move what the
world needs. In 2023, Group sales totalled EUR 4.0 billion. Konecranes shares
are listed on Nasdaq Helsinki (symbol: KCR).

DISTRIBUTION

Nasdaq Helsinki

Major media

www.konecranes.com

Attachments:

04257727.pdf