2016-07-22 08:00:02 CEST
2016-07-22 08:00:02 CEST
REGULATED INFORMATION
Konecranes Oyj - Interim report (Q1 and Q3)
Konecranes Plc Interim Report January-June 2016
KONECRANES PLC INTERIM REPORT July 22, 2016 at 9:00 a.m.
ADJUSTED OPERATING PROFIT IMPROVED, SALES GUIDANCE SLIGHTLY REDUCED, OPERATING
PROFIT GUIDANCE INTACT
This stock exchange release is a summary of Konecranes Plc’s interim report
January-June 2016. The complete report is attached to this release in pdf
format and is also available on Konecranes’ website at www.konecranes.com.
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier
SECOND QUARTER HIGHLIGHTS
- Order intake EUR 480.2 million (490.3), -2.1 percent.
- Order book EUR 1,043.3 million (1,100.4) at end-June, -5.2 percent.
- Sales EUR 528.8 million (535.6), -1.3 percent; Service -1.4 percent and
Equipment -2.6 percent.
- Adjusted operating profit* EUR 36.0 million (25.7), 6.8 percent of sales
(4.8).
- Adjustments* EUR -7.4 million (-9.5).
- Operating profit EUR 28.6 million (16.3), 5.4 percent of sales (3.0).
- Earnings per share (diluted) EUR 0.27 (0.19).
- Net cash flow from operating activities EUR 17.3 million (5.7).
- Net debt EUR 258.7 million (261.9) and gearing 64.4 percent (59.9).
JANUARY-JUNE HIGHLIGHTS
- Order intake EUR 905.3 million (1,009.1), -10.3 percent mainly due to lower
port cranes orders in the first quarter.
- Sales EUR 987.4 million (1,010.5), -2.3 percent; Service -1.7 percent and
Equipment -4.4 percent.
- Adjusted operating profit* EUR 50.8 million (39.9), 5.1 percent of sales
(3.9).
- Adjustments* EUR -21.9 million (-11.8).
- Operating profit EUR 28.9 million (28.1), 2.9 percent of sales (2.8).
- Earnings per share (diluted) EUR 0.19 (0.29).
- Net cash flow from operating activities EUR 14.2 million (-48.7).
*Adjustments (corresponding term non-recurring items in 2015) include
restructuring costs, transaction costs related to the terminated merger plan
with Terex and proposed acquisition of Terex MHPS, unwarranted payments due to
identity theft and fraudulent actions (in the third quarter of 2015), and
insurance indemnity related to identity theft and fraudulent actions (in the
second quarter of 2016). Konecranes’ management believes that the adjusted
operating profit is relevant to understanding the comparable financial
performance when comparing the result for the current period with the previous
periods.
MARKET OUTLOOK
Customers are cautious about investing because economic growth has decelerated
across the globe. Companies operating in emerging and commodity markets are
particularly under pressure to save costs. Certain market uncertainty continues
in North America. The demand situation in Europe has somewhat improved. The
decline in the global container throughput has led to slower decision-making
among container terminal operators.
NEW FINANCIAL GUIDANCE
Based on the order book, service contract base and near-term demand outlook,
the sales in 2016 are expected to be approximately on the same level as in
2015. We expect the 2016 adjusted operating profit to improve from 2015.
PREVIOUS FINANCIAL GUIDANCE
Based on the order book, service contract base and near-term demand outlook,
the sales in 2016 are expected to be higher than in 2015. We expect the 2016
adjusted operating profit to improve from 2015.
KEY FIGURES Second quarter First half year
--------------------------------------------------------------------------------
4-6/ 4-6/ Change 1-6/ 1-6/ Change R12M 2015
2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Orders 480.2 490.3 -2.1 905.3 1,009.1 -10.3 1,861.7 1,965.5
received,
MEUR
--------------------------------------------------------------------------------
Order book at 1,043.3 1,100.4 -5.2 1,036.5
end of
period, MEUR
--------------------------------------------------------------------------------
Sales total, 528.8 535.6 -1.3 987.4 1,010.5 -2.3 2,103.1 2,126.2
MEUR
--------------------------------------------------------------------------------
Adjusted 49.6 38.4 29.1 76.7 64.3 19.3 178.9 166.5
EBITDA, MEUR
*)
--------------------------------------------------------------------------------
Adjusted 9.4% 7.2% 7.8% 6.4% 8.5% 7.8%
EBITDA, % *)
--------------------------------------------------------------------------------
Adjusted 36.0 25.7 40.2 50.8 39.9 27.3 128.6 117.7
operating
profit, MEUR
*)
--------------------------------------------------------------------------------
Adjusted 6.8% 4.8% 5.1% 3.9% 6.1% 5.5%
operating
margin, % *)
--------------------------------------------------------------------------------
EBITDA, MEUR 43.3 33.5 29.1 57.6 58.2 -1.0 116.5 117.1
--------------------------------------------------------------------------------
EBITDA, % 8.2% 6.3% 5.8% 5.8% 5.5% 5.5%
--------------------------------------------------------------------------------
Operating 28.6 16.3 76.1 28.9 28.1 2.9 63.9 63.0
profit, MEUR
--------------------------------------------------------------------------------
Operating 5.4% 3.0% 2.9% 2.8% 3.0% 3.0%
margin, %
--------------------------------------------------------------------------------
Profit before 22.4 16.7 34.1 15.4 24.8 -38.0 46.0 55.4
taxes, MEUR
--------------------------------------------------------------------------------
Net profit for 16.0 11.4 40.6 10.9 17.0 -35.7 24.7 30.8
the period,
MEUR
--------------------------------------------------------------------------------
Earnings per 0.27 0.19 40.1 0.19 0.29 -36.2 0.42 0.53
share, basic,
EUR
--------------------------------------------------------------------------------
Earnings per 0.27 0.19 40.1 0.19 0.29 -36.1 0.42 0.53
share,
diluted, EUR
--------------------------------------------------------------------------------
Gearing, % 64.4% 59.9% 44.6%
--------------------------------------------------------------------------------
Return on 8.2% 9.5%
capital
employed %
--------------------------------------------------------------------------------
Free cash 10.2 -3.3 3.3 -65.9 67.8 -1.4
flow, MEUR
--------------------------------------------------------------------------------
Average number 11,647 11,929 -2.4 11,934
of personnel
during the
period
--------------------------------------------------------------------------------
*) Adjustments in 2016 include transaction costs, which contain advisory, legal
and consulting fees related to terminated merger plan with Terex and proposed
acquisition of Terex MHPS, restructuring costs and the insurance indemnity
related to identity theft. Full year 2015 adjustments included transaction
costs, restructuring costs and the unwarranted payments due to the identity
theft and fraudulent actions. See also note 12 in the interim report.
President and CEO Panu Routila:
“We managed to deliver a profitability improvement in the second quarter driven
by robust performance in both Service and Equipment. The fact that our
second-quarter adjusted EBIT rose by EUR 10.3 million or by 40 percent on a
year-on-year basis despite a sales decline of 1.3 percent shows that our cost
savings actions deliver. Group’s adjusted EBIT margin rose from 4.8 percent in
the previous year to 6.8 percent.
In the second quarter, we continued cost savings actions related to
restructuring, which supported our gross margin and lowered our fixed costs in
both Service and Equipment. Group’s total number of personnel decreased by 443
employees in the first half of 2016, 165 of which realized in the second
quarter. Service has continued to restructure the underperforming units across
its operations, whereas Equipment has reduced its manufacturing capacity in
China, India, Brazil, and the US. In addition, both business areas and
corporate functions have streamlined their support resources.
Our new operating model based on direct product line organization and P&L
responsibilities became effective on July 1. This will improve the efficiency
and agility of our operations. Proximity to business and customer intimacy will
increase. The benefits of this change will be visible in our results in the
coming quarters, and, therefore, lend further support to our promising
profitability development.
May 16 marked a milestone in building our future as we signed an agreement to
acquire from Terex Corporation its Material Handling & Port Solutions business.
This acquisition will prove crucial to improving our position as a global
partner in services, industrial lifting and port solutions. The combination
makes it possible for us to realize a long list of synergies, it opens new
growth opportunities in the service business and creates critical mass for
future technology development.”
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at the restaurant Savoy’s
Salikabinetti (address: Eteläesplanadi 14) at 11.00 a.m. Finnish time. The
Interim Report 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 dated July 4, 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 11,400
employees at 600 locations in 48 countries. Konecranes is listed on Nasdaq
Helsinki (symbol: KCR1V).
DISTRIBUTION
Nasdaq Helsinki
Media
www.konecranes.com
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