2016-02-03 08:00:02 CET
2016-02-03 08:00:02 CET
REGULATED INFORMATION
Konecranes Oyj - Financial Statement Release
KONECRANES PLC FINANCIAL STATEMENTS BULLETIN 2015
KONECRANES PLC FINANCIAL STATEMENTS BULLETIN February 3, 2016 at 9:00 a.m.
ORDER BOOK HIGHER, OPERATIONAL EBIT AT PREVIOUS YEAR’S LEVEL
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier. Figures are unaudited.
FOURTH QUARTER HIGHLIGHTS
- Order intake EUR 512.5 million (513.3), -0.1 percent; Service -0.1 percent
and Equipment -2.6 percent.
- Order book EUR 1,036.5 million (979.5) at year-end, +5.8 percent compared
with a year before.
- Sales EUR 609.0 million (608.1), +0.1 percent; Service +6.7 percent and
Equipment -4.2 percent.
- Operating profit excluding non-recurring items* EUR 44.6 million (47.1), 7.3
percent (7.7) of sales.
- Non-recurring items* EUR 13.8 million (1.6).
- Operating profit EUR 30.8 million (45.5), 5.1 percent of sales (7.5).
- Earnings per share (diluted) EUR 0.21 (0.51).
- Net cash flow from operating activities EUR 40.9 million (66.4).
- Net debt EUR 203.2 million (149.5) and gearing 44.6 percent (33.3).
FULL-YEAR 2015 HIGHLIGHTS
- Orders received EUR 1,965.5 million (1,903.5), +3.3 percent; Service +7.8
percent and Equipment -0.4 percent.
- Sales EUR 2,126.2 million (2,011.4), +5.7 percent; Service +10.9 percent and
Equipment +1.5 percent.
- Operating profit excluding non-recurring items* EUR 117.7 million (119.1),
5.5 percent (5.9) of sales.
- Non-recurring items* EUR 54.7 million (3.2).
- Operating profit EUR 63.0 million (115.8), 3.0 percent of sales (5.8).
- Earnings per share (diluted) EUR 0.53 (1.28).
- Net cash flow from operating activities EUR 39.3 million (148.4).
- Dividend proposed by the Board of Directors is EUR 1.05 (1.05) per share.
- Figures are unaudited**
*Non-recurring items include restructuring costs, transaction costs relating to
the Terex merger, and the unwarranted payments due to identity theft and
fraudulent actions (only in the third quarter of 2015, not deducted by crime
insurance indemnity). The non-recurring items in 2014 included restructuring
costs only.
** The auditor’s report will be issued later as the US PCAOB audit is not yet
completed and the timetables for finalizing the ISA and PCAOB audits are
aligned.
MARKET OUTLOOK
Customers are cautious about investing as economic growth has slowed down
across the globe. Companies operating in emerging and commodity markets are
particularly under pressure to save costs. Business activity in the North
American manufacturing and process industries weakened toward the end of 2015
and demand outlook is more uncertain than a year ago. Demand situation in
Europe is stable. Even though the global container throughput has slowed down,
our offer base for container handling equipment has remained solid and the
order book for 2016 deliveries is good. Continued contract base growth bodes
well for the future of the service business.
FINANCIAL GUIDANCE
Based on the order book, the service contract base and the near-term demand
outlook, sales in 2016 are expected to be higher than in 2015. We expect the
2016 operating profit, excluding non-recurring items, to improve from 2015.
KEY FIGURES Fourth quarter January-December
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10-12/ 10-12/ Change 1-12/ 1-12/ Change
2015 2014 % 2015 2014 %
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Orders received, MEUR 512.5 513.3 -0.1 1,965.5 1,903.5 3.3
--------------------------------------------------------------------------------
Order book at end of period, 1,036.5 979.5 5.8
MEUR
--------------------------------------------------------------------------------
Sales total, MEUR 609.0 608.1 0.1 2,126.2 2,011.4 5.7
--------------------------------------------------------------------------------
EBITDA excluding 57.0 58.7 -2.9 166.5 162.2 2.6
non-recurring items, MEUR *)
--------------------------------------------------------------------------------
EBITDA excluding 9.4 9.7 7.8 8.1
non-recurring items, % *)
--------------------------------------------------------------------------------
Operating profit excluding 44.6 47.1 -5.3 117.7 119.1 -1.1
non-recurring items, MEUR *)
--------------------------------------------------------------------------------
Operating margin excluding 7.3 7.7 5.5 5.9
non-recurring items, % *)
--------------------------------------------------------------------------------
EBITDA, MEUR 42.7 57.1 -25.3 117.1 159.0 -26.4
--------------------------------------------------------------------------------
EBITDA, % 7.0 9.4 5.5 7.9
--------------------------------------------------------------------------------
Operating profit, MEUR 30.8 45.5 -32.3 63.0 115.8 -45.6
--------------------------------------------------------------------------------
Operating margin, % 5.1 7.5 3.0 5.8
--------------------------------------------------------------------------------
Profit before taxes, MEUR 28.6 41.6 -31.2 55.4 107.4 -48.5
--------------------------------------------------------------------------------
Net profit for the period, 12.6 29.5 -57.4 30.8 74.6 -58.7
MEUR
--------------------------------------------------------------------------------
Earnings per share, basic, 0.21 0.51 -57.9 0.53 1.28 -59.1
EUR
--------------------------------------------------------------------------------
Earnings per share, diluted, 0.21 0.51 -57.8 0.53 1.28 -59.0
EUR
--------------------------------------------------------------------------------
Dividend per share, EUR 1.05** 1.05 0.0
--------------------------------------------------------------------------------
Gearing, % 44.6 33.3
--------------------------------------------------------------------------------
Return on capital employed % 10.4 17.0
--------------------------------------------------------------------------------
Free cash flow, MEUR 24.8 56.1 -1.4 109.4
--------------------------------------------------------------------------------
Average number of personnel 11,934 11,920 0.1
during the period
--------------------------------------------------------------------------------
*) Non-recurring items include transaction costs (-17.2 MEUR in 1-12/2015 and
-8.7 MEUR in 10-12/2015) which contain advisory, legal and consulting fees
related to Konecranes Terex merger, restructuring costs (-20.5 in 1-12/2015 and
-5.0 MEUR in 10-12/2015) and the unwarranted payments due to the identity theft
and fraudulent actions (-17.0 MEUR in 1-12/2015 and 0.0 MEUR in 10-12/2015).
The non-recurring items in 2014 included restructuring costs only.
**) The Board’s proposal to AGM.
President and CEO Panu Routila:
“Our Q4 results came close to our expectations with Group orders, sales, and
operating profit, excluding non-recurring items, being near the previous year’s
levels. Service continued to improve its profitability on a year-on-year basis
in the fourth quarter. Its full-year 2015 operating margin, excluding
restructuring costs, rose by 0.4 percentage points to 10.4 percent. We were
able to generate modest sales growth at comparable currencies despite the fact
that many of our industrial customers experienced headwinds in their
businesses. Service’s order book and contract base value were up 8.7 percent
and 7.5 percent on a year-on-year basis at year-end 2015, respectively, which
bodes well for the continued improvements in 2016.
Equipment order intake recovered sequentially, thanks to the pick-up in
container handling equipment orders that were on a good level. At the same
time, the demand among industrial customers continued to be sluggish,
particularly in emerging markets. We cannot be satisfied with the year-on-year
decline of EUR 5.0 million in the Equipment Q4 operating profit, excluding
restructuring costs. This was mainly due to the 7.1 percent sales decline at
comparable currencies, unfavorable sales mix, and a provision of EUR 3.3
million relating to a receivable from a Latin American customer. On the other
hand, our cost savings actions are delivering the expected results. Business
Area Equipment order book was up 5.3 percent on a year-on-year basis at
year-end 2015, incorporating a solid outlook for the container handling
equipment deliveries in 2016.
When I took the position as President and CEO in November 2015, I already knew
of both the huge potential Konecranes offers as an organization and the value
of the expertise it houses. Working hands-on with our people in the months
since then has only confirmed this impression.
Our main strength is in the experts we employ. Witnessing their joint efforts
toward the success of our businesses is a continuing inspiration, and we aspire
to make even better use of this resource to fuel the growth. As chief
executive, I want to invest in people, invest in R&D, and invest in sustaining
Konecranes as a true technology leader. We do all this to ensure that we serve
our customers continuously with better products and services.
We are making changes to bring more direct business commandership into our ways
of working, and some may welcome this as an overdue development. Our overheads
have been too high and therefore we need to reduce our fixed cost base to
improve our competitiveness. Renewal is in the air for Konecranes, just as it
inevitably lies in the future of the industries we serve.”
BOARD OF DIRECTORS’ PROPOSAL FOR DISPOSAL OF DISTRIBUTABLE FUNDS
The parent company’s non-restricted equity is EUR 276,744,547.45, of which the
net income for the year is EUR 164,816,834.32. The Group’s non-restricted
equity is EUR 395,615,000.
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.
A pdf version of the Konecranes’ full audited financial statements, including
the report of the Board of Directors, and corporate governance statement will
be available on the web on March 1, 2016, and the printed version during week
11.
DISCLOSURE PROCEDURE
Konecranes follows the disclosure procedure enabled by Disclosure obligation of
the issuer (7/2013) published by the Finnish Financial Supervision Authority.
This stock exchange release is a summary of Konecranes Plc’s financial
statements bulletin 2015. The complete report is attached to this release in
pdf format and is also available on Konecranes’ website at www.konecranes.com.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at restaurant Savoy’s
Salikabinetti (address Eteläesplanadi 14) at 11.00 a.m. Finnish time. The 2015
financial statements will be presented by Konecranes’ President and CEO Panu
Routila 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 15, 2016
for the conference call details.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
Mr. Panu Routila, 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 2015, Group sales totaled EUR 2,126 million. The Group has 11,900
employees at 600 locations in 48 countries. Konecranes is listed on the Nasdaq
Helsinki (symbol: KCR1V).
DISTRIBUTION
Nasdaq Helsinki
Media
www.konecranes.com
Forward Looking Statements
This document contains forward-looking statements regarding future events,
including statements regarding Terex or Konecranes, the transaction described
in this document and the expected benefits of such transaction and future
financial performance of the combined businesses of Terex and Konecranes based
on each of their current expectations. These statements involve risks and
uncertainties that may cause results to differ materially from those set forth
in the statements. When included in this document, the words “may”, “expects”,
“intends”, “anticipates”, “plans”, “projects”, “estimates” and the negatives
thereof and analogous or similar expressions are intended to identify
forward-looking statements. However, the absence of these words does not mean
that the statement is not forward-looking. Terex and Konecranes have based
these forward-looking statements on current expectations and projections about
future events. These statements are not guarantees of future performance.
Because forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many of which
are beyond the control of Konecranes, include, among others: the ability of
Terex and Konecranes to obtain shareholder approval for the transaction, the
ability of Terex and Konecranes to obtain regulatory approval for the
transaction, the possibility that the length of time required to complete the
transaction will be longer than anticipated, the achievement of the expected
benefits of the transaction, risks associated with the integration of the
businesses of Terex and Konecranes, the possibility that the businesses of
Terex and Konecranes may suffer as a result of uncertainty surrounding the
proposed transaction, and other factors, risks and uncertainties that are more
specifically set forth in Terex’ public filings with the SEC and Konecranes’
annual and interim reports. Konecranes disclaims any obligation to update the
forward-looking statements contained herein.
IMPORTANT ADDITIONAL INFORMATION
This document relates to the proposed merger of Terex and Konecranes through
which all of Terex’ common stock will be exchanged for Konecranes ordinary
shares (or American depositary shares, if required). This document is for
informational purposes only and does not constitute an offer to purchase or
exchange, or a solicitation of an offer to sell or exchange, all of common
stock of Terex, nor is it a substitute for the Preliminary Prospectus included
in the Registration Statement on Form F-4 (the “Registration Statement”) to be
filed by Konecranes with the SEC, the Prospectus/Proxy to be filed by Terex
with the SEC, the listing prospectus of Konecranes to be filed by Konecranes
with the Finnish Financial Supervisory Authority (and as amended and
supplemented from time to time, the “Merger Documents”). No offering of
securities shall be made in the United States except by means of a prospectus
meeting the requirements of Section 10 of the U.S. Securities Act of 1933.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE MERGER DOCUMENTS AND ALL
OTHER RELEVANT DOCUMENTS THAT KONECRANES OR TEREX HAS FILED OR MAY FILE WITH
THE SEC, NASDAQ HELSINKI, OR FINNISH FINANCIAL SUPERVISORY AUTHORITY WHEN THEY
BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION
THAT INVESTORS AND SECURITY HOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION
REGARDING THE PROPOSED MERGER.
The information contained in this document must not be published, released or
distributed, directly or indirectly, in any jurisdiction where the publication,
release or distribution of such information is restricted by laws or
regulations. Therefore, persons in such jurisdictions into which these
materials are published, released or distributed must inform themselves about
and comply with such laws or regulations. Konecranes and Terex do not accept
any responsibility for any violation by any person of any such restrictions.
The Merger Documents and other documents referred to above, if filed or
furnished by Konecranes or Terex with the SEC, as applicable, will be available
free of charge at the SEC’s website (www.sec.gov) or by writing to Anna-Mari
Kautto, Investor Relations Assistant, Konecranes Plc, P.O. Box 661, FI-05801
Hyvinkää, Finland or Elizabeth Gaal, Investor Relations Associate, Terex, 200
Nyala Farm Road, Westport, CT 06880, USA.
Konecranes and Terex and their respective directors, executive officers and
employees and other persons may be deemed to be participants in the
solicitation of proxies in respect of the transaction. Information regarding
Konecranes' directors and executive officers is available in Konecranes’ annual
report for fiscal year 2014 at www.konecranes.com. Information about Terex'
directors and executive officers and their ownership of Terex ordinary shares
is available in its Schedule 14A filed with the SEC on April 1, 2015. Other
information regarding the interests of such individuals as well as information
regarding Konecranes’ and Terex' directors and officers will be available in
the proxy statement/prospectus when it becomes available. These documents can
be obtained free of charge from the sources indicated above.
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