Konecranes Oyj - Interim report (Q1 and Q3)

STRONG ORDER INTAKE, OPERATING PROFIT IMPROVING

KONECRANES PLC INTERIM REPORT April 28, 2011 at 9:00 a.m.

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

FIRST QUARTER HIGHLIGHTS

- Order intake EUR 510.9 million (320.6), +59.4 percent; Service +19.6 percent
and Equipment +85.4 percent. 
- Order book EUR 956.6 million (641.3) at the end of March, 49.2 percent higher
than a year ago, 26.5 percent higher than at the end of 2010. 
- Sales EUR 387.8 million (306.3), +26.6 percent; Service +15.5 percent and
Equipment +29.4 percent. 
- Operating profit EUR 18.5 million (11.6), +60.0 percent; 4.8 percent of sales
(3.8). 
- Earnings per share (diluted) EUR 0.14 (0.15).
- Net debt EUR 7.0 million (-46.6) and gearing 1.7 percent (-12.4).

MARKET OUTLOOK

The demand for maintenance services is expected to be above last year's level
due to higher capacity utilization within customer industries. Also, the demand
for new equipment is expected to grow compared to last year. However, due to
the timing of large port crane projects, the quarterly Equipment order intake
may fluctuate significantly. 

FINANCIAL GUIDANCE

We forecast year 2011 sales and operating profit to be higher than in 2010. The
increased technology and IT development will add approximately EUR 20 million
to our cost base from 2011 while the benefits will follow from 2012 onwards. 

PREVIOUS FINANCIAL GUIDANCE

We forecast year 2011 sales and operating profit to be higher than in 2010.


KEY FIGURES                                 
--------------------------------------------------------------------------------
                                        1-3/20  1-3/20  Change  R12M        2010
                                        11      10      %                       
--------------------------------------------------------------------------------
Orders received, MEUR                    510.9   320.6    59.4  1,726.3  1,536.0
--------------------------------------------------------------------------------
Order book at end of period, MEUR        956.6   641.3    49.2             756.2
--------------------------------------------------------------------------------
Sales total, MEUR                        387.8   306.3    26.6  1,627.8  1,546.3
--------------------------------------------------------------------------------
Operating profit excluding                18.5    11.6    60.0    122.0    115.1
 restructuring costs, MEUR                                                      
--------------------------------------------------------------------------------
Operating margin excluding                4.8%    3.8%             7.5%     7.4%
 restructuring costs, %                                                         
--------------------------------------------------------------------------------
Operating profit including                18.5    11.6    60.0    119.4    112.4
 restructuring costs, MEUR                                                      
--------------------------------------------------------------------------------
Operating margin including                4.8%    3.8%             7.3%     7.3%
 restructuring costs, %                                                         
--------------------------------------------------------------------------------
Profit before taxes, MEUR                 11.8    12.4    -5.0    110.7    111.3
--------------------------------------------------------------------------------
Net profit for the period, MEUR            8.3     8.8    -5.4     77.7     78.2
--------------------------------------------------------------------------------
Earnings per share, basic, EUR            0.14    0.15    -5.1     1.34     1.35
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR          0.14    0.15    -6.1     1.33     1.34
--------------------------------------------------------------------------------
Gearing, %                                1.7%  -12.4%                     -3.8%
--------------------------------------------------------------------------------
Return on capital employed %, Rolling                             25.1%    24.2%
 12 Months (R12M)                                                               
--------------------------------------------------------------------------------
Average number of personnel during the  10,370   9,672     7.2             9,739
 period                                                                         
--------------------------------------------------------------------------------


President and CEO Pekka Lundmark:

”We are pleased with the development of demand during the first quarter of
2011. Our order intake, boosted by several large port crane projects, was the
fourth highest in our history. Also the demand for industrial cranes, lift
trucks and maintenance services developed in a promising manner. As is typical
for the beginning of the year, our deliveries were low. This seasonality, in
combination with weaker product mix and the earlier announced higher technology
and IT development spending, held back our margin improvement. Even though the
operating profit increased by a solid 60 percent from the first quarter of
2010, the 4.8 percent margin (3.8 percent a year ago) was somewhat behind our
own targets. Our strong order book gives a good reason for optimism for the
upcoming quarters, but uncertainties concerning the world economic development
in general and the growing inflationary pressures in particular, also call for
some caution in business planning.” 

NEW DISCLOSURE PROCEDURE

Konecranes Plc follows the new disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority and hereby publishes
its interim report enclosed to this stock exchange release. Konecranes Plc's
interim report is attached to this release in pdf format and is also available
on the company's web site at www.konecranes.com. 

ANALYST AND PRESS BRIEFING

An analyst and press conference will be held at G.W. Sundmans' Auditorium
(address Eteläranta 16) at 11.00 a.m. Finnish time. The Interim Report 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 dated April 14, 2011
for the conference call details. 


KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations

FURTHER INFORMATION
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 2010, Group sales totaled EUR 1,546 million. The Group has 10,000
employees at 578 locations in 46 countries. Konecranes is listed on the NASDAQ
OMX Helsinki (symbol: KCR1V). 

DISTRIBUTION
Media
NASDAQ OMX Helsinki
www.konecranes.com

Attachments:

Q1 Interim Eng.pdf