Published:

2013-01-31 08:00:02 CET

Registered:

2013-01-31 08:00:18 CET

REGULATED INFORMATION

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Konecranes Oyj - Financial Statement Release

KONECRANES PLC: FULL-YEAR SALES AND OPERATING PROFIT GREW

KONECRANES PLC FINANCIAL STATEMENTS BULLETIN January 31, 2013 at 9:00 a.m.

Figures in brackets, unless otherwise stated, refer to the same period a year
earlier.

FOURTH QUARTER HIGHLIGHTS

- Order intake EUR 423.8 million (473.9), -10.6 percent: Service -1.1 percent
and Equipment -14.7 percent.
- Order book EUR 942.7 million (991.8) at year-end, -4.9 percent compared with
a year before.
- Sales EUR 605.1 million (598.2), +1.2 percent: Service +1.8 percent and
Equipment +1.8 percent.
- Operating profit before restructuring costs EUR 42.2 million (47.5), 7.0
percent (7.9) of sales.
- Restructuring costs EUR 5.8 million (10.3).
- Operating profit including restructuring costs EUR 36.4 million (37.2), 6.0
percent of sales (6.2).
- Earnings per share (diluted) EUR 0.39 (0.39).
- Net cash flow from operating activities EUR 84.9 million (10.4).
- Net debt EUR 181.8 million (219.8) and gearing 39.5 percent (50.5).

FULL YEAR 2012 HIGHLIGHTS

- Orders received EUR 1,970.1 million (1,896.1), +3.9 percent: Service +5.8
percent and Equipment +3.8 percent.
- Sales EUR 2,170.2 million (1,896.4), +14.4 percent: Service +11.0 percent and
Equipment +17.5 percent.
- Operating profit before restructuring costs EUR 137.9 million (117.2), 6.4
percent (6.2) of sales, +17.7 percent.
- Restructuring costs EUR 5.8 million (10.3).
- Operating profit including restructuring costs EUR 132.1 million (106.9), 6.1
percent of sales (5.6).
- Earnings per share (diluted) EUR 1.46 (1.10), +32.4 percent.
- Net cash flow from operating activities EUR 159.2 million (-20.8).
- Dividend proposed by Board of Directors is EUR 1.05 (1.00) per share.

MARKET OUTLOOK

Demand forecasting continues to be challenging due to macroeconomic
uncertainties. Our current offer base indicates a stable or slightly higher
near-term demand compared to the fourth quarter of 2012. However, due to the
timing of large crane projects, the quarterly Equipment order intake will
fluctuate.

FINANCIAL GUIDANCE

Based on the offer base and the near-term demand outlook, the year 2013 sales
is expected to be stable or slightly higher than in 2012. We expect the 2013
operating profit to improve from 2012.
KEY FIGURES Fourth quarter January-December
--------------------------------------------------------------------------------
10-12/ 10-12/ Change 1-12/ 1-12/ Change
2012 2011 % 2012 2011 %
--------------------------------------------------------------------------------
Orders received, MEUR 423.8 473.9 -10.6 1,970.1 1,896.1 3.9
--------------------------------------------------------------------------------
Order book at end of period, 942.7 991.8 942.7 991.8 -4.9
MEUR
--------------------------------------------------------------------------------
Sales total, MEUR 605.1 598.2 1.2 2,170.2 1,896.4 14.4
--------------------------------------------------------------------------------
EBITDA excluding 52.9 57.3 -7.7 178.5 154.3 15.7
restructuring costs, MEUR
--------------------------------------------------------------------------------
EBITDA excluding 8.7% 9.6% 8.2% 8.1%
restructuring costs, %
--------------------------------------------------------------------------------
Operating profit excluding 42.2 47.5 -11.2 137.9 117.2 17.7
restructuring costs, MEUR
--------------------------------------------------------------------------------
Operating margin excluding 7.0% 7.9% 6.4% 6.2%
restructuring costs, %
--------------------------------------------------------------------------------
EBITDA, MEUR 50.0 51.2 -2.3 175.7 148.1 18.6
--------------------------------------------------------------------------------
EBITDA, % 8.3% 8.6% 8.1% 7.8%
--------------------------------------------------------------------------------
Operating profit, MEUR 36.4 37.2 -2.1 132.1 106.9 23.6
--------------------------------------------------------------------------------
Operating margin, % 6.0% 6.2% 6.1% 5.6%
--------------------------------------------------------------------------------
Profit before taxes, MEUR 33.7 35.7 -5.3 124.0 95.8 29.5
--------------------------------------------------------------------------------
Net profit for the period, 22.3 23.0 -2.9 84.7 64.9 30.4
MEUR
--------------------------------------------------------------------------------
Earnings per share, basic, 0.39 0.39 -0.9 1.47 1.11 32.3
EUR
--------------------------------------------------------------------------------
Earnings per share, diluted, 0.39 0.39 -0.7 1.46 1.10 32.4
EUR
--------------------------------------------------------------------------------
Gearing, % 39.5% 50.5%
--------------------------------------------------------------------------------
Return on capital employed % 18.6% 17.1%
--------------------------------------------------------------------------------
Free cash flow 71.2 -9.0 102.3 -73.2
--------------------------------------------------------------------------------
Average number of personnel 11,917 10,998 8.4
during the period
--------------------------------------------------------------------------------

President and CEO Pekka Lundmark,"I am pleased with many aspects of our performance in 2012. In a marketplace
where uncertainty and customers' hesitation to make decisions has become the
new norm, a 14 percent growth in sales to a new record level of EUR 2,170
million was a good achievement. Operating profit before restructuring costs
rose by 18 percent to EUR 138 million and earnings per share 32 percent to EUR
1.46. Cash flow was strong, reducing our gearing to below 40 percent. All in
all, 2012 was a good year, but we aim higher.

A year ago, we decided that our service business should prioritize
profitability over growth in the short term. The reason was clear: heavy
investments in growth, combined with execution issues, had resulted in an EBIT
margin of only 7.0 percent in 2011. The results of this prioritization are
encouraging, as the 2012 EBIT margin improved to 8.4 percent. Things are moving
in the right direction, but obviously we cannot be satisfied with this level
yet. There is still profitability improvement potential in numerous areas of
our network, which currently includes over 600 service locations in 47
countries.

The profitability of the equipment business developed satisfactorily in a
challenging market environment during the first three quarters of 2012, but the
last quarter was weaker. There were both market structure issues, such as low
industrial cranes demand in some Western markets, and various operational
issues. We are now prioritizing profitability over growth in the equipment
business in the same way that we did in the service business a year ago. We
announced restructuring measures at the beginning of the year, with the main
objective of reallocating resources from Western markets to emerging ones.

Forecasting demand development has rarely been as difficult as it is right now.
In our Q3 report, we said that there were signs of weakening demand after astrong first half of the year. This was also evident in a slight weakness in Q4
orders. However, the number of new opportunities in our pipeline is still good
and has actually slightly increased in some units. This means that we are now a
bit more optimistic about short-term demand than we were after Q3 last year."

BOARD OF DIRECTORS' PROPOSAL FOR DISPOSAL OF DISTRIBUTABLE FUNDS

The parent company's non-restricted equity is EUR 193, 194,781.05, the net
income of which for the year is EUR 111,298,139.92. The Group's non-restricted
equity is EUR 385,938,000.

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 end of fiscal year.

Based on such assessments the Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 1.05 be paid on each share and that the
remaining non-restricted equity is retained in shareholders' equity.

DISCLOSURE PROCEDURE

Konecranes follows the disclosure procedure enabled by Standard 5.2b published
by the Finnish Financial Supervision Authority. This stock exchange release is
a summary of Konecranes Plc's Financial Statements Bulletin 2012. The complete
report is attached to this release in pdf format and is also available on
Konecranes' website at www.konecranes.com.

CORPORATE GOVERNANCE STATEMENT 2012

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 KÄMP Kansallissali (address:
Aleksanterinkatu 44 A, 2. floor) at 11.00 a.m. Finnish time. The 2012 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 10, 2013
for the conference call details.

NEXT REPORT

Konecranes' January-March 2013 interim report will be published on April 24,
2013.

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 2012, Group sales totaled EUR 2,170 million. The Group has 12,100
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

Attachments:

Q4_2012_eng.pdf

KC_CGS_2012_v06_en.pdf