2010-07-22 08:56:21 CEST
2010-07-22 08:57:19 CEST
REGULATED INFORMATION
Konecranes Oyj - Interim report (Q1 and Q3)
ORDER GROWTH IN SERVICE, SIGNS OF GROWTH ALSO IN EQUIPMENT
KONECRANES PLC INTERIM REPORT July 22, 2010 at 9:30 a.m.
ORDER GROWTH IN SERVICE, SIGNS OF GROWTH ALSO IN EQUIPMENT
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier
SECOND QUARTER HIGHLIGHTS
- Order intake EUR 364.4 million (309.6), +17.7 percent: Service +25.9 percent
and Equipment +8.4 percent.
- Order book EUR 685.2 million (680.6) at end June, 0.7 percent higher than a
year ago, 6.8 percent higher than at end-March 2010.
- Sales EUR 377.0 million (431.6), -12.6 percent: Service +3.4 percent and
Equipment -24.4 percent.
- Operating profit before restructuring costs EUR 23.4 million (30.7), 6.2
percent (7.1) of sales.
- Restructuring costs EUR 2.7 million (1.9).
- Operating profit, including restructuring costs, EUR 20.7 million (28.8), 5.5
percent of sales (6.7).
- Earnings per share (diluted) EUR 0.25 (0.33).
- Net cash flow from operating activities EUR -6.3 million (34.4).
- Net debt EUR 19.0 million (35.5) and gearing 4.7 percent (9.1).
JANUARY-JUNE HIGHLIGHTS
- Order intake EUR 684.9 million (679.3), +0.8 percent: Service +18.6 percent
and Equipment -10.9 percent.
- Sales EUR 683.3 million (873.7), -21.8 percent: Service -4.7 percent and
Equipment -31.8 percent.
- Operating profit before restructuring costs EUR 35.0 million (67.5), 5.1
percent (7.7) of sales.
- Restructuring costs EUR 2.7 million (1.9).
- Operating profit, including restructuring costs, EUR 32.3 million (65.6), 4.7
percent of sales (7.5).
- Earnings per share (diluted) EUR 0.41 (0.76).
- Net cash flow from operating activities EUR -5.8 million (67.0).
FUTURE PROSPECTS
Konecranes reiterates the previous guidance for the year 2010 for sales and
operating profit, but changes the Equipment demand outlook as a result of
improved market situation. The new guidance is:
The demand for maintenance services is supported by higher capacity utilization
within customer industries. The improved industrial production and container
handling volumes have increased customers' willingness to invest in new
equipment too, but the decision-making is still conditional on the
sustainability of economic growth. Price competition is likely to remain.
Growing demand will support our sales and profitability already during the
second half of 2010. However, due to the low first half year sales we expect
full year 2010 sales to be lower than in 2009. We expect the operating profit in
2010 to be lower than in 2009 before restructuring costs.
The previous statement on future prospects from April 28, 2010
was:
“Konecranes expects the market uncertainty to continue. However, the demand
outlook for maintenance services has improved as a result of higher capacity
utilization within customer industries. The demand for new equipment is expected
to remain generally on a low level, and to suffer because of overcapacity at
customers. Price competition is likely to remain. A high degree of fluctuation
between quarters may continue due to the timing of orders.
Due to the lower order book compared to a year ago, our forecast is that sales
in 2010 will be lower than in 2009. We expect the operating profit in 2010 to be
lower than in 2009 before restructuring costs.”
--------------------------------------------------------------------------------
| KEY FIGURES | Second quarter | First half year |
| | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | Change | 1-6/ | 1-6/ | R12M | 2009 |
| | 2010 | 2009 | % | 2010 | 2009 | | |
--------------------------------------------------------------------------------
| Orders | 364.4 | 309.6| 17.7 | 684.9 | 679.3 | 1,354.5 | 1,348.9 |
| received, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Order book at | 685.2 | 680.6| 0.7 | 685.2 | 680.6 | | 607.0 |
| end of period, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Sales total, | 377.0 | 431.6| -12.6 | 683.3 | 873.7 | 1,480.9 | 1,671.3 |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------| Operating | 23.4 | 30.7 | -23.8 | 35.0 | 67.5 | 86.3 | 118.8 |
| profit | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | | |
| costs, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 6.2 | 7.1 | | 5.1 | 7.7 | 5.8 | 7.1 |
| margin | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | | |
| costs, % | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 20.7 | 28.8 | -28.0 | 32.3 | 65.6 | 64.6 | 97.9 |
| profit | | | | | | | |
| including | | | | | | | |
| restructuring | | | | | | | |
| costs, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 5.5 | 6.7 | | 4.7 | 7.5 | 4.4 | 5.9 |
| margin | | | | | | | |
| including | | | | | | | |
| restructuring | | | | | | | |
| costs, % | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 20.8 | 27.4 | -24.3 | 33.2 | 62.8 | 59.0 | 88.6 |
| taxes, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 14.5 | 19.6 | -25.8 | 23.3 | 44.9 | 40.9 | 62.5 |
| for the | | | | | | | |
| period, MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.26 | 0.33 | -23.6 | 0.41 | 0.77 | 0.72 | 1.08 |
| share, basic, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.25 | 0.33 | -23.9 | 0.41 | 0.76 | 0.72 | 1.08 |
| share, | | | | | | | |
| diluted, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Gearing, % | | | | 4.7 | 9.1 | | -19.1 |
--------------------------------------------------------------------------------
| Return on | | | | | | 12.7 | 19.3 |
| capital | | | | | | | |
| employed %, | | | | | | | |
| Rolling 12 | | | | | | | |
| Months | | | | | | | |
| (R12M) | | | | | | | |
--------------------------------------------------------------------------------
| Average number | | | | | | | |
| of personnel | | | | 9,638 | 9,820 | | 9,811 |
| during the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
President and CEO Pekka Lundmark:
”Our second quarter development met our own expectations. Our service business
has now clearly returned to growth after a slow 2009. Our new, widened portfolio
of services has been well received by our customers, and it provides a good
platform for further growth in 2011. Also our equipment businesses have started
to see signs of a recovering demand, but mostly at the smaller end of the
equipment range. At industrial customers the demand for small cranes and
components has increased, and the same is true for lifttrucks for port
operators. Large individual orders of heavy equipment are still missing.
Geographically, the major Western European markets are still slow, while most
other parts of the world look quite promising. Our delivery volumes recovered
from the exceptionally low level in the first quarter. Gross margins have held
up quite well, since our cost reduction measures have been able to offset most
of the price pressure that is visible especially in small standard equipment.
This provides upside potential for our profits once the volumes grow.”
KONECRANES PLC JANUARY - JUNE 2010 INTERIM REPORT
Changes in Reporting Method
Konecranes changed its structure from the beginning of 2010 so that Business
Areas Standard Lifting and Heavy Lifting were merged into one Business Area:
Equipment. External segment reporting was also changed to match with the
operational structure of the group. From 2010, Konecranes reports two segments,
Service and Equipment. While the number of segments was reduced from three to
two, Konecranes discloses more information than before about the segments on a
quarterly basis. The new information includes EBITDA, depreciation and
impairments, capital employed, ROCE and capital expenditure.
To further improve the transparency of segment profitability, the allocation of
Group costs into the business areas has been redefined. Previously, centralized
Market Operations, procurement, R&D and IT costs were reported as unallocated
group costs. From 2010 these costs are allocated to the business areas. The
reporting of centralized legal, marketing & communications, finance, HR and
general management costs remain unchanged and these will continue to be shown as
unallocated group costs. Additionally, the reporting of elimination of internal
margins (consolidation items) in inventories has changed as a result of fewer
segments and internal margins within the business areas being incorporated in
the operating profit of the respective business area.
Konecranes published the 2009 comparison figures related to the segment
reporting change in a stock exchange release on February 24, 2010.
In addition, unrealized exchange rate differences relating to the hedging of
trade receivables and payables that are not included in IFRS hedge accounting
have been reported as part of net sales and cost of goods sold above the
operating profit from 2010. Previously these items were reported in financial
income and expenses. It is not possible to recalculate accurately the impact of
this change on 2009 numbers as a result of which restating of the 2009 numbers
has not been done for this change. However, it is estimated that the change
would only have a minor impact on the segment operating profits in 2009. There
would not be any change in profit before taxes in 2009.
MARKET REVIEW
The turnaround in the global economy that started in the autumn of 2009
continued in the first half of 2010. Further fuelled by easy monetary policies
and low interest rates, global macro indicators improved on a broad basis and in
many cases even exceeded expectations. Growth rates in the emerging markets
continued to exceed those in the developed countries.
The second quarter economic news flow was dominated by the concerns regarding
public finances in several, mainly South European countries. As a result,
several countries announced tough measures to reduce their budget deficits.
Despite the increased turbulence in the financial markets, macroeconomic
indicators remained mostly positive. Some Chinese economic indicators lost
momentum as the government took measures to cool down the economic growth.
Industrial capacity utilization improved both in Europe and the USA in the first
half, but was still low by historical standards and reached the previous trough
of late 2001 only towards the end of the second quarter. Purchasing managers'
indexes were buoyant across the globe, all pointing to expanding business
activity although at moderating pace towards the end of the second quarter.
Demand for new equipment continued to suffer from overcapacity across customer
segments. Demand for heavy industrial cranes was affected by the lack of major
industrial investments in process industries while the demand for lighter
industrial cranes and components was supported by livelier activity in general
manufacturing. After a quiet start into the year, the increase in shipping
volumes resulted in higher inquiries from container ports towards the end of the
second quarter. New inquiries from energy, steel and paper & pulp sectors
increased as well. Intense price competition persisted due to the overcapacity
in the crane manufacturing industry.
Demand for services relating to lifting equipment and machine tools improved due
to higher capacity utilization within customer industries. Customers have
continued to show a growing interest to outsource maintenance.
The market prices for steel, copper and sea freight increased in the first half,
but leveled off towards the end of the second quarter. The US dollar appreciated
clearly against EUR during the first half.
Note: Unless otherwise stated, the figures in brackets in the sections below
refer to the same period in the previous year.
ORDERS RECEIVED
January-June orders received totaled EUR 684.9 million (679.3), representing an
increase of 0.8 percent compared with a year before. Orders received rose in
Service by 18.6 percent, but declined in Equipment by 10.9 percent. Orders
received rose in Americas and Asia-Pacific, but decreased in Europe-Middle
East-Africa due to lower Equipment orders in the region.
In January-June, orders from emerging markets accounted for more than a third of
total orders compared with more than 30 percent in 2009.
Second-quarter order intake rose by 17.7 percent from a year ago and totaled EUR
364.4 million (309.6). Order intake increased in Service by 25.9 and in
Equipment by 8.4 percent. Similar to the first half performance, second quarter
orders received rose in AME and APAC, but decreased in EMEA due to lower
Equipment orders in Western Europe.
ORDER BOOK
The value of the order book at end June totaled EUR 685.2 million. The order
book increased by 0.7 percent from last year's comparison figure of EUR 680.6
million and by 6.8 percent from end-March 2010 when it stood at EUR 641.3
million. Service accounted for EUR 106.5 million (15 percent) and Equipment for
EUR 598.3 million (85 percent) of the total end-June order book.
SALES
Group sales in January-June decreased by 21.8 percent from a year ago and
totaled EUR 683.3 million (873.7). Sales in Service decreased by 4.7 percent and
in Equipment by 31.8 percent.
Second-quarter sales declined by 12.6 percent from a year ago and totaled EUR
377.0 million (431.6). Sales rose in Service by 3.4 percent, but fell in
Equipment by 24.4 percent.
Acquisitions contributed about 3 percent to sales in the first half of 2010.
At end June, calculated for a rolling 12 months, the regional breakdown was as
follows: EMEA 55 (57), Americas 29 (28) and APAC 16 (15) percent.
--------------------------------------------------------------------------------
| Net sales by region, MEUR | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | Change | Change at | R12M | 2009 |
| | 2010 | 2009 | 2010 | 2009 | percent | comparable| | |
| | | | | | | currency | | |
| | | | | | | rates | | |
| | | | | | | | | |
--------------------------------------------------------------------------------
| EMEA | 189.9| 236.3 | 362.9| 482.7 | -24.8 | -26.4 | 808.1 | 928.0 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| AME | 123.8| 121.2 | 210.4| 254.0 | -17.2 | -19.1 | 436.0 | 479.5 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| APAC | 63.3 | 74.0 | 110.0| 137.0 | -19.7 | -24.3 | 236.8 | 263.8 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| Total| 377.0| 431.6 | 683.3| 873.7 | -21.8 | -24.0 | 1,480.9 | 1,671.3 |
| | | | | | | | | |
--------------------------------------------------------------------------------
CURRENCY RATE EFFECT
In a year-on-year comparison, the currency rates had a positive effect on orders
and sales in January-June. The reported order intake rose by 0.8 percent, but
declined by 1.8 percent at comparable currency rates. Reported sales declined by
21.8 percent and by 24.0 percent at comparable currency rates.
Of the regions, the currency rate impact on sales in EMEA was positive with the
reported decrease being 24.8 percent compared with a decrease at comparable
currency rates of 26.4 percent. In the Americas, the reported sales decline of
17.2 percent was less than the decline of 19.1 percent at comparable currency
rates. The corresponding figures in APAC were -19.7 percent and -24.3 percent.
In January-June the currency rates did not have any significant impact on the
Group's operating margin compared with the same period a year earlier.
FINANCIAL RESULT
The consolidated operating profit in January-June totaled EUR 32.3 million
(65.6). Operating profit decreased by EUR 33.3 million. Operating profit
includes EUR 2.7 million (1.9) restructuring costs booked in the second quarter
due to the announced closure of the assembly plant in Windsor, WI, USA. The
consolidated operating margin declined to 4.7 percent (7.5). The operating
margin in Service declined to 8.0 percent (9.0) and in Equipment to 3.7 percent
(7.7).
The consolidated operating profit in the second quarter totaled EUR 20.7 million
(28.8) including restructuring costs of EUR 2.7 million (1.9). The consolidated
operating margin in the second quarter declined to 5.5 percent (6.7). The
operating margin in Service rose to 9.1 percent (8.8), but declined in Equipment
to 4.2 percent (6.6).
The implemented cost savings lowered fixed costs compared to a year ago, which
partly offset the under absorption of the cost base caused by the decline in
Group sales. Procurement cost savings and adjustment of production capacity
offset the product price pressure.
The share of the result of associated companies and joint ventures was EUR 1.1
million (-1.4).
Net financial expenses totaled EUR 0.2 million (1.4). Net interest expenses were
EUR 1.2 million (1.3). The remainder was mainly attributable to exchange rate
differences related to the depreciation of EUR.
The January-June profit before taxes was EUR 33.2 million (62.8).
Income taxes in January-June were EUR -9.9 million (-17.9). The Group's
effective tax rate was 29.8 percent (28.5).
Net profit for January-June was EUR 23.3 million (44.9).
Diluted earnings per share for January-June were EUR 0.41 (0.76).
On a rolling twelve-month basis, return on capital employed was 12.7 percent
(42.7) and return on equity 10.3 percent (40.8).
Balance Sheet
The consolidated balance sheet, which at end June stood at EUR 1,145.5 million,
was EUR 32.1 million more than at June 30, 2009 and EUR 85.1 million more than
at year-end 2009. Total equity at the end of the report period was EUR 405.1
million (385.4). Total equity attributable to equity holders of the parent
company at June 30 was EUR 399.5 million (382.6) or EUR 6.78 per share (6.51).
From end-March 2010, net working capital increased by EUR 90.5 million to EUR
193.0 million at end June. Net working capital rose due to the dividend payment
in April, higher work in progress and receivables as well as lower advances
received.
Cash Flow and Financing
Net cash from operating activities in January-June was EUR -5.8 million (67.0),
representing EUR -0.10 per diluted share (1.13). Net cash from operations in the
second quarter was EUR -6.3 million (34.4). Cash flow before financing
activities was EUR -49.8 million (53.3) in January-June. Cash flow before
financing activities in the second quarter was EUR -15.3 million (25.7).
Interest-bearing net debt increased to EUR 19.0 million from EUR -46.6 million
at end March, but decreased from EUR 35.5 million a year ago. The solidity was
41.9 percent (41.1) and gearing 4.7 percent (9.1).
The Group's liquidity remained healthy. At the end of the second quarter, cash
and cash equivalents amounted to EUR 95.1 million (96.9). None of the Group's
EUR 200 million committed back-up financing facility was in use at the end of
the period.
CAPITAL EXPENDITURE
January-June capital expenditure excluding acquisitions and investments in
associated companies amounted to EUR 9.3 million (9.6). This amount consisted
mainly of replacement or capacity expansion investments in machines, equipment
and information technology. Capital expenditure including acquisitions and
investments in associated companies was EUR 39.0 million (12.5).
ACQUISITIONS
Capital expenditure on acquisitions and investments in associated companies was
EUR 29.7 million (2.9). During January -June, Konecranes made three small
acquisitions, which related to the Machine Tool Service (MTS) business in
Denmark and in the United Kingdom. The net assets of the acquired companies were
recorded at EUR 1.5 million and goodwill of EUR 1.1 million was booked from the
acquisitions.
Konecranes and the Japanese hoist, crane and material handling equipment company
Kito Corporation (“Kito”) entered into a strategic alliance. The alliance
agreement was signed by representatives of the two companies on March 23, 2010.
To fully utilize the global market potential and mutually complement each other,
Konecranes will enter into an agreement to sell Kito manual products while Kito
will sell wire rope hoists made by Konecranes. The distribution and license
agreements are expected to be concluded in the near future.
To reinforce the strategic alliance, Konecranes purchased 29,750 shares (22.0%
of the share capital and voting rights) in Kito on March 24, 2010. The total
value of the stake purchased amounted to approximately JPY 3.3 billion (EUR 27
million). Furthermore, Kito repurchased 10.0% of the share capital on March 24,
2010. Post the share purchase by Konecranes and the Kito share buyback,
Konecranes has approximately 24.4% of the voting rights in Kito.
The shareholding has been included in investments accounted for using the equity
method in the balance sheet on March 31. Kito will be included in Konecranes'
statement of income as an associated company. The benefits of the alliance are
not expected to have a material impact on Konecranes' net sales and operating
profit in 2010.
As part of the strategic alliance, Konecranes aims to transfer the hoist
distribution business of the Japanese subsidiary MHS Konecranes to Kito in the
near future. As a part of the transaction, Konecranes on June 4, 2010, finalized
the agreement to increase its ownership in MHS Konecranes to 100% by acquiring
the remaining 35% stake from Meidensha Corporation.
PERSONNEL
In January-June, the Group employed an average of 9,638 people (9,820). At 30
June, the headcount was 9,570 (9,691). At end June, the number of personnel by
Business Area were as follows: Service 4,938 employees (5,210), Equipment 4,583
employees (4,429) and Group staff 49 (52). The Group had 5,431 employees (5,778)
working in EMEA, 2,170 (2,410) in the Americas and 1,969 (1,503) in the APAC
region.
Konecranes announced on June 3, 2010, that it will close its assembly plant in
Windsor, WI, USA by the end of October 2010. Low equipment demand in the
developed markets, closer integration of Morris Material Handing Inc's (P&H)
activities into Konecranes' operations and widening usage of corporate-wide
products have reduced production volumes at the Windsor plant in 2010. A plan
has been prepared to cease operations at the Windsor factory and to relocate the
remaining activities to the other Konecranes locations in the USA. The personnel
in Windsor are 47 of which 27 will be offered jobs in the other locations
leading to a reduction of 20 positions.
BUSINESS AREAS
--------------------------------------------------------------------------------
| Service | | | | | | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | Change | R12M | 2009 |
| | 2010 | 2009 | 2010 | 2009 | percent | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Orders | 159.1 | 126.4 | 298.9 | 252.0 | 18.6 | 545.3 | 498.4 |
| received | | | | | | | |
--------------------------------------------------------------------------------
| Order book | 106.5 | 93.9 | 106.5 | 93.9 | 13.4 | | 75.9 |
--------------------------------------------------------------------------------
| Contract base | 145.7 | 124.2 | 145.7 | 124.2 | 17.3 | | 121.3 |
| value | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 175.2 | 169.5 | 323.2 | 339.2 | -4.7 | 651.3 | 667.2 |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | 18.8 | 17.2 | 31.1 | 35.3 | -11.7 | 64.4 | 68.6 |
--------------------------------------------------------------------------------
| EBITDA, % | 10.7 | 10.2 | 9.6 | 10.4 | | 9.9 | 10.3 |
--------------------------------------------------------------------------------
| Depreciation | -2.8 | -2.3 | -5.3 | -4.6 | 14.5 | -11.0 | -10.3 |
| and | | | | | | | |
| amortization | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 16.0 | 15.5 | 25.8 | 31.3 | -17.4 | 55.5 | 61.0 |
| profit (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 9.1 | 9.2 | 8.0 | 9.2 | | 8.5 | 9.1 |
| profit (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | | |
| costs items, % | | | | | | | |
--------------------------------------------------------------------------------
| Restructuring | 0.0 | -0.6 | 0.0 | -0.6 | | -2.0 | -2.7 |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 16.0 | 14.9 | 25.8 | 30.6 | -15.7 | 53.5 | 58.3 |
| profit (EBIT) | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 9.1 | 8.8 | 8.0 | 9.0 | | 8.2 | 8.7 |
| profit (EBIT), | | | | | | | |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 151.1 | 156.4 | 151.1 | 156.4 | -3.4 | | 130.7 |
| employed | | | | | | | |
--------------------------------------------------------------------------------
| ROCE% | | | | | | 34.8 | 43.8 |
--------------------------------------------------------------------------------
| Capital | 3.2 | 1.2 | 4.1 | 2.9 | 43.2 | 9.0 | 7.7 |
| expenditure | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at | 4,938 | 5,210 | 4,938 | 5,210 | -5.2 | | 4,991 |
| the end of | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
January-June orders received totaled EUR 298.9 million (252.0), showing an
increase of 18.6 percent. Demand for maintenance services grew in all regions.
Order intake increased across several business units with particular strength in
Modernization. Also, demand for spare parts was strong. The order book increased
by 13.4 percent to EUR 106.5 million (93.9) from a year before and by 21.4
percent from end-March 2010. Sales decreased by 4.7 percent to EUR 323.2 million
(339.2). Operating profit was EUR 25.8 million (30.6) and the operating margin
8.0 percent (9.0). The January-June 2009 operating profit included EUR 0.6
million restructuring costs booked in the second quarter.
The second quarter order intake increased by 25.9 percent and totaled EUR 159.1
million (126.4). Similar to the first half, demand grew in all regions and was
particularly strong in Modernization and Parts Business Units as a result of
higher capacity utilization among customer industries. Second-quarter sales
totaled EUR 175.2 million (169.5), which was 3.4 percent more than a year ago.
Second-quarter operating profit was EUR 16.0 million (14.9), and the operating
margin 9.1 percent (8.8).
The total number of equipment included in the maintenance contract base amounted
to 371,387 at end June, compared with 373,547 a year before and 367,124 at
end-March 2010. The annual value of the contract base increased to EUR 145.7
million from EUR 124.2 million a year before and from EUR 131.7 million at
end-March 2010. Approximately a half of the increase in the value of the
contract base was attributable to currency changes.
The number of service technicians at end-June was 3,172, which is 188 or 5.6
percent less than at the end of June 2009.
--------------------------------------------------------------------------------
| Equipment | | | | | | | |
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | Change | R12M | 2009 |
| | 2010 | 2009 | 2010 | 2009 | percent | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Orders | 219.6 | 202.6 | 415.7 | 466.5 | -10.9 | 883.8 | 934.6 |
| received | | | | | | | |
--------------------------------------------------------------------------------
| Order book | 598.3 | 599.0 | 598.3 | 599.0 | -0.1 | | 547.8 |
--------------------------------------------------------------------------------
| Net sales | 221.6 | 293.0 | 407.5 | 597.6 | -31.8 | 924.9 | 1,115.1 |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | 14.3 | 23.2 | 25.0 | 54.0 | -53.7 | 50.4 | 79.5 |
--------------------------------------------------------------------------------
| EBITDA,% | 6.5 | 7.9 | 6.1 | 9.0 | | 5.5 | 7.1 |
--------------------------------------------------------------------------------
| Depreciation | -5.1 | -3.9 | -9.8 | -8.0 | 22.1 | -22.7 | -21.0 |
| and | | | | | | | |
| amortization | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 11.9 | 20.5 | 17.9 | 47.3 | -62.1 | 47.3 | 76.7 |
| profit | | | | | | | |
| (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuring | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 5.4 | 7.0 | 4.4 | 7.9 | | 5.1 | 6.9 |
| profit | | | | | | | |
| (EBIT) | | | | | | | |
| excluding | | | | | | | |
| restructuring| | | | | | | |
| costs,% | | | | | | | |
--------------------------------------------------------------------------------
| Restructuring| -2.7 | -1.3 | -2.7 | -1.3 | | -19.6 | -18.2 |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 9.2 | 19.2 | 15.3 | 46.0 | -66.9 | 27.7 | 58.5 |
| profit | | | | | | | |
| (EBIT) | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 4.2 | 6.6 | 3.7 | 7.7 | | 3.0 | 5.2 |
| profit | | | | | | | |
| (EBIT),% | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 234.7 | 274.9 | 234.7 | 274.9 | -14.6 | | 208.7 |
| employed | | | | | | | |
--------------------------------------------------------------------------------
| ROCE% | | | | | | 10.9 | 22.9 |
--------------------------------------------------------------------------------
| Capital | 1.9 | 2.4 | 5.1 | 6.0 | -14.6 | 16.1 | 17.0 |
| expenditure | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at | 4,583 | 4,429 | 4,583 | 4,429 | 3.5 | | 4,742 |
| the end of | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
January-June orders received totaled EUR 415.7 million (466.5), showing a
decline of 10.9 percent. Order intake rose in the Americas and APAC, but fell in
EMEA. Orders for Industrial Cranes accounted for approximately a half of the
orders received and were lower than a year ago. Components generated
approximately 30 percent of the new orders and were above last year's level. The
combined orders for the other business units (Nuclear Cranes, Port Cranes and
Lift Trucks) amounted to approximately 20 percent of the orders received and
were lower compared to the comparison period due to the lack of large single
orders in Port Cranes, which boosted last year's figure.
The order book decreased by 0.1 percent from a year before, but increased by 7.2
percent from the end-March 2010 to EUR 598.3 million (599.0). Sales decreased by
31.8 percent to EUR 407.5 million (597.6). Operating profit was EUR 15.3 million
(46.0) and the operating margin 3.7 percent (7.7). The January-June operating
profit includes EUR 2.7 million (1.3) restructuring costs.
The second quarter order intake rose by 8.4 percent and totaled EUR 219.6
million (202.6). Similar to the first half, second quarter order intake rose in
Americas and APAC, but fell in EMEA due to lower orders from Western Europe. The
share of industrial cranes was higher in the second quarter than in the first
quarter. The value of new orders was higher than a year ago in all business
units except Port Cranes. Second-quarter sales totaled EUR 221.6 million (293.0)
and were 24.4 percent less than a year ago. Second-quarter operating profit was
EUR 9.2 million (19.2), and the operating margin 4.2 percent (6.6).
Profitability weakened due to declining volumes. The negative profit impact from
lower volumes could not be fully offset by the cost savings actions. The
April-June operating profit includes EUR 2.7 million (1.3) restructuring costs.
Group overheads
Unallocated Group overhead costs and eliminations in the reporting period were
EUR -8.8 million (-11.1), representing 1.3 percent of sales (1.3).
ADMINISTRATION
Konecranes Annual General Meeting was held March 25, 2010. The meeting approved
the company's annual accounts for the fiscal year 2009 and discharged the
members of the Board of Directors and Managing Director from liability.
Payment of dividend
The AGM approved the Board's proposal that a dividend of EUR 0.90 per share is
paid from the distributable assets of the parent company. The dividend was paid
on 59,426,320 shares and amounted to EUR 53,483,688. The dividend was paid on
April 9, 2010.
Composition of the Board of Directors
The AGM approved the proposal of the Nomination and Compensation Committee that
eight (8) members of the Board of Directors be elected. The Board members
elected at the AGM in 2009 i.e. Mr Svante Adde, Mr Tomas Billing, Mr Kim Gran,
Mr Stig Gustavson, Mr Tapani Järvinen, Mr Matti Kavetvuo, Ms Malin Persson and
Mr Mikael Silvennoinen were re-elected.
Compensation of the Board of Directors
The AGM confirmed the annual compensation to the Board members:
Chairman of the Board: EUR 100,000
Vice Chairman of the Board: EUR 64,000
Other Board Members: EUR 40,000
In addition, compensation of EUR 1,500 per meeting will be paid for attendance
at Board Committee meetings.
Election of the auditors and their remuneration
The AGM confirmed that Ernst & Young Oy continues as the Company's external
auditor. The remuneration of the auditor will be paid according to the auditor's
reasonable invoice.
Amendment of the Articles of Association
The AGM decided to amend Section 9 of the Articles of Association so that notice
to the General Meeting shall be delivered no less than three weeks before the
General Meeting, however no less than 9 days prior to the record date of the
General Meeting. The AGM also approved that the notice, by decision by the Board
of Directors, can be delivered by publishing the notice on the Company's website
or in national newspapers, or by sending written notices to the shareholders by
mail. Furthermore, the AGM confirmed that the General Meeting may, in addition
to the Company's domicile, be held in Helsinki, Espoo or Vantaa.
Authorization of the Board of Directors to decide on the issuance of shares as
well as on the issuance of special rights entitling to shares
The amount of shares to be issued based on this authorization shall not exceed
9,000,000 shares, which corresponds to approximately 14.5 percent of all of the
shares in the Company.
The authorization is effective until the end of the next Annual General Meeting,
however no longer than until 24 September 2011.
Authorization of the Board of Directors to repurchase the Company's own shares
The amount of own shares to be repurchased and/or accepted as pledge shall not
exceed 6,000,000 shares in total, which corresponds to approximately 9.7 percent
of all of the shares in the Company.
The authorization is effective until the end of the next Annual General Meeting,
however no longer than until 24 September 2011.
Authorization of the Board of Directors to decide on the transfer of the
Company's own shares
The authorization is limited to a maximum of 6,000,000 shares, which corresponds
to approximately 9.7 percent of all of the shares in the Company.
This authorization shall be effective until the next Annual General Meeting of
Shareholders, however no longer than until 24 September 2011.
Donation for philanthropic purposes
The AGM decided to grant a donation to one or more Finnish Universities in the
amount of EUR 1,250,000 to thereby support education and research within the
fields of technology, economy, or art. This amount will reduce equity once it
will be paid.
Board of Directors' organizing meeting
In its first meeting held after the Annual General Meeting, the Board of
Directors elected Mr Stig Gustavson to continue as Chairman. Mr Svante Adde was
elected Chairman of the Audit Committee, and Mr Kim Gran, Mr Tapani Järvinen and
Mr Mikael Silvennoinen as Committee members. Mr Matti Kavetvuo was elected
Chairman of the Nomination and Compensation Committee, and Mr Tomas Billing, Mr
Stig Gustavson, and Ms Malin Persson were elected as Committee members.
With the exception of Mr Stig Gustavson, the Board members are deemed to be
independent of the company under the Finnish Corporate Governance Code. All
Board members are independent of significant shareholders of the company.
SHARE CAPITAL AND SHARES
The company's registered share capital at June 30, 2010 totaled EUR 30.1
million. At June 30, 2010, the number of shares including treasury shares and
the shares owned by KCR Management Oy totaled 62,002,120. At June 30, 2010,
Konecranes held a total of 2,530,600 treasury shares, excluding the shares owned
by KCR Management Oy, which corresponds to 4.1 percent of the total number of
shares and which at that date had a market value of EUR 54.4 million. Konecranes
conveyed 12,000 own shares on April 29, 2010, as sale against contribution in
kind.
SHARES REGISTERED UNDER STOCK OPTION RIGHTS
Pursuant to Konecranes' stock option plans, 129,200 new shares were subscribed
and registered in the Finnish Trade Register during the first half. As a result
of these subscriptions, the total number of Konecranes shares (including
treasury shares and the shares owned by KCR Management Oy) rose to 62,002,120.
The subscription period for the options under Konecranes 2001B stock option plan
ended on March 31, 2010. The last lot of the shares subscribed under the 2001B
stock option plan was registered in the Finnish Trade Register on May 5, 2010.
The stock options issued under Konecranes Plc's ongoing stock option plans (2007
and 2009) at end-June 2010 entitle holders to subscribe a total of 3,390,000
shares, which would increase the total number of Konecranes shares (including
treasury shares and the shares owned by KCR Management Oy) to 65,392,120. The
option programs include approximately 210 key persons.
All shares carry one vote per share and equal rights to dividends.
The terms and conditions of the stock option programs are available on
Konecranes' website at www.konecranes.com.
MARKET CAPITALIZATION AND TRADING VOLUME
The closing price for Konecranes Plc's shares on June 30, 2010 was EUR 21.49.
The volume-weighted average share price in January-June was EUR 21.99, the
highest price being EUR 25.28 in April and the lowest EUR 19.08 in January. In
January-June, the trading volume totaled 55.6 million Konecranes Plc shares,
corresponding to a turnover of approximately EUR 1,222 million. The average
daily trading volume was 451,751 shares, representing an average daily turnover
of EUR 9.9 million.
On June 30, 2010, the total market capitalization of Konecranes Plc's shares was
EUR 1,332.4 million including treasury shares held by the company and the shares
held by KCR Management Oy. The market capitalization was EUR 1,266.9 million
excluding the treasury shares and the shares held by KCR Management Oy.
FLAGGING NOTIFICATIONS
On February 24, 2010, HTT 2 Holding Oy Ab informed Konecranes that their holding
had exceeded 5 percent. HTT 2 Holding Oy Ab held 3,129,500 shares, which was
5.06 percent of Konecranes' shares and votes on February 24, 2010.
On April 9, 2010, BlackRock, Inc. informed Konecranes that their holding had
exceeded 10 percent. BlackRock, Inc. held 6,228,000 shares, which was 10.05
percent of Konecranes' shares and votes on April 9, 2010.
On June 4, 2010, BlackRock, Inc. informed Konecranes that their holding had
decreased below 10 percent. BlackRock, Inc. held 6,181,787 shares, which was
9.97 percent of Konecranes' shares and votes on April 9, 2010.
On June 23, 2010, Konecranes received a disclosure according to which the
combined holding of HTT 2 Holding Oy Ab, K. Hartwall Invest Oy Ab,
Fyrklöver-Invest Oy Ab and Rönnäs Invest AG had exceeded 10 percent. The
combined ownership of the shareholders mentioned in the disclosure amounted to
6,207,968 shares on June 23, 2010, which is 10.01 percent of the shares and
votes in Konecranes Plc. All the shareholders mentioned in the disclosure will
in practice cooperate in matters concerning their ownership in Konecranes. HTT 2
Holding Oy Ab is a subsidiary of Hartwall Capital Oy Ab.
EVENTS AFTER THE END OF THE REPORTING PERIOD
On July 2, 2010, HTT 2 Holding Oy Ab informed Konecranes that their holding had
exceeded 10 percent. HTT 2 Holding Oy Ab held 6,215,568 shares, which was 10.02
percent of Konecranes' shares and votes on July 2, 2010. K. Hartwall Invest Oy
Ab, Fyrklöver-Invest Oy Ab and Rönnäs Invest AG, who will in practice cooperate
with HTT 2 Holding Oy Ab in matters concerning their ownership in Konecranes
Plc, held 6,357,968 shares on July 2, 2010, which is 10.25 percent of the shares
and votes in Konecranes Plc.
RISKS AND UNCERTAINTIES
The Group's principal short-term risks and uncertainties derive from a possible
renewed downturn in the world economy due to the sovereign credit crisis, for
example, or other unforeseen events. A decrease in demand for Konecranes'
products and services may have a negative effect on the Group's pricing power,
and result in decreasing profits, a possible impairment of goodwill and other
assets, or inventory obsolescence.
A renewed shortage of credit may cause difficulties for Konecranes' customers,
suppliers, and financial and other counterparties. The risk may be realized as a
shortage of supplies or defaulting liabilities.
The supply chain has been downsized due to the weak demand for products and it
is possible that once demand picks up again, Konecranes and its suppliers may
not be able to respond to this instantly, which may result in delays of
deliveries and increased costs as a consequence. In addition to Konecranes' own
assembly operations, the lack of raw materials and components may cause
bottlenecks.
The economic growth, particularly in China, has had an inflatory impact on raw
material prices, which may affect Konecranes' profits if product sales prices
cannot be adjusted correspondingly due to intense competition, for example. On
the other hand, Konecranes serves several producers whose propensity to invest
can increase due to improved profitability on higher raw material prices.
Challenges in financing may lead customers to postpone projects or even to
cancel existing orders. A renewed downturn in the world economy would increase
postponement of deliveries and cancellations of orders. Advance payments are an
integral part of Konecranes' project business and they have played a crucial
role in mitigating the adverse effects from postponements of certain deliveries
and minor cancellations. Konecranes intends to avoid incurring costs of major
projects under construction in excess of advance payments. Konecranes aims to
continue a strict policy in these regards.
Currency rate fluctuations have increased and may significantly affect the
company's performance. The USD/EUR exchange rate has the largest impact on
financial performance through a combination of the translational effect and
transactional exposure.
FUTURE PROSPECTS
Konecranes reiterates the previous guidance for the year 2010 for sales and
operating profit, but changes the Equipment demand outlook as a result of
improved market situation. The new guidance is:
The demand for maintenance services is supported by higher capacity utilization
within customer industries. The improved industrial production and container
handling volumes have increased customers' willingness to invest in new
equipment too, but the decision-making is still conditional on the
sustainability of economic growth. Price competition is likely to remain.
Growing demand will support our sales and profitability already during the
second half of 2010. However, due to the low first half year sales we expect
full year 2010 sales to be lower than in 2009. We expect the operating profit in
2010 to be lower than in 2009 before restructuring costs.
The previous statement on future prospects from April 28, 2010
was:
“Konecranes expects the market uncertainty to continue. However, the demand
outlook for maintenance services has improved as a result of higher capacity
utilization within customer industries. The demand for new equipment is expected
to remain generally on a low level, and to suffer because of overcapacity at
customers. Price competition is likely to remain. A high degree of fluctuation
between quarters may continue due to the timing of orders.
Due to the lower order book compared to a year ago, our forecast is that sales
in 2010 will be lower than in 2009. We expect the operating profit in 2010 to be
lower than in 2009 before restructuring costs.”
Helsinki, July 22, 2010
Konecranes Plc
Board of Directors
Disclaimer
It should be noted that certain statements in this report, which are not
historical facts, including, without limitation, those regarding
- expectations for general economic development and market situation,
- expectations for general developments in the industry,
- expectations regarding customer industry profitability and investment
willingness,
- expectations for company growth, development and profitability,
- expectations regarding market demand for the company's products and services,
- expectations regarding the successful completion of acquisitions on a timely
basis and our ability to achieve the set targets and synergies,
- expectations regarding competitive conditions,
- expectations regarding cost savings,
- and statements preceded by "believes,""expects,""anticipates,""foresees" or
similar expressions, are forward-looking statements. These statements are based
on current expectations, decisions and plans and currently known facts.
Therefore, they involve risks and uncertainties, which may cause actual results
to materially differ from the results currently expected by the company. Such
factors include, but are not limited to,
- general economic conditions, including fluctuations in exchange rates and
interest levels,
- the competitive situation, especially significant products or services
developed by our competitors,
- industry conditions,
- the company's own operating factors, including the success of production,
product development, project management, quality, and timely delivery of our
products and services and their continuous development,
- the success of pending and future acquisitions and restructurings.
Summary Financial Statements and Notes
Accounting principles
The presented financial information is prepared in accordance with International
Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU.
As of January 1, 2010 Konecranes applied one amended standard: IFRS 3, Business
Combinations (Revised). In revised IFRS 3 the acquisition-related costs will be
expensed through statement of income at time that such services are received.
This is a significant difference from former practice in which such costs were
included in the cost of the business combination and therefore included in the
calculation of goodwill. The other year 2010 standards will have immaterial
impact on future financial statements.
Konecranes is introducing also new reporting segments. From the beginning of
2010, Konecranes will report two Business Areas: Service and Equipment.
Previously the number of reporting segments was three: Service, Standard Lifting
and Heavy Lifting. More information than before will be provided for each
segment, and the allocation of Group costs into the segments has been redefined
to improve transparency. The comparison figures in year 2009 have been changed
accordingly.
Otherwise Konecranes applies the same accounting policies as were applied in the
2009 annual financial statements.
The figures presented in the tables below have been rounded to one decimal,
which should be taken into account when reading the sum figures.
The numbers stated in this bulletin have not been subject to audit.
--------------------------------------------------------------------------------
| Consolidated statement of income |
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 377.0 | 431.6 | 683.3 | 873.7 | -21.8 | 1,671.3 |
--------------------------------------------------------------------------------
| Other | 0.8 | 0.8 | 1.6 | 1.5 | | 2.9 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -8.0 | -6.5 | -15.3 | -13.3 | | -32.5 |
| and | | | | | | |
| impairments | | | | | | |
--------------------------------------------------------------------------------
| Other | -349.0 | -397.0 | -637.3 | -796.2 | | -1,543.8 |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating | 20.7 | 28.8 | 32.3 | 65.6 | -50.8 | 97.9 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| Share of | 0.9 | -1.4 | 1.1 | -1.4 | | -2.2 |
| associates' | | | | | | |
| and joint | | | | | | |
| ventures' | | | | | | |
| result | | | | | | |
--------------------------------------------------------------------------------
| Financial | -0.9 | 0.0 | -0.2 | -1.4 | | -7.1 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 20.8 | 27.4 | 33.2 | 62.8 | -47.1 | 88.6 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Taxes | -6.2 | -7.8 | -9.9 | -17.9 | | -26.1 |
--------------------------------------------------------------------------------
| NET PROFIT | 14.5 | 19.6 | 23.3 | 44.9 | -48.1 | 62.5 |
| FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net profit for the period attributable to: |
--------------------------------------------------------------------------------
| Shareholders | 15.1 | 19.8 | 24.0 | 45.2 | | 63.6 |
| of the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | -0.5 | -0.2 | -0.7 | -0.3 | | -1.1 |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.26 | 0.33 | 0.41 | 0.77 | -46.8 | 1.08 |
| share, | | | | | | |
| basic (EUR) | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.25 | 0.33 | 0.41 | 0.76 | -47.0 | 1.08 |
| share, | | | | | | |
| diluted (EUR) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit | 14.5 | 19.6 | 23.3 | 44.9 | -48.1 | 62.5 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for the period, net of tax |
--------------------------------------------------------------------------------
| Exchange | 17.2 | -4.9 | 29.0 | 0.2 | | -1.1 |
| differences | | | | | | |
| on | | | | | | |
| translating | | | | | | |
| foreign | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | -2.2 | 2.4 | -6.3 | 2.2 | | 1.9 |
| hedges | | | | | | |
--------------------------------------------------------------------------------
| Income tax | 0.6 | -0.6 | 1.6 | -0.6 | | -0.5 |
| relating to | | | | | | |
| components of | | | | | | |
| other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Other | 15.6 | -3.1 | 24.4 | 1.8 | | 0.3 |
| comprehensive | | | | | | |
| income for | | | | | | |
| the period, | | | | | | |
| net of tax | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 30.1 | 16.5 | 47.7 | 46.7 | 2.1 | 62.8 |
| COMPREHENSIVE | | | | | | |
| INCOME FOR | | | | | | |
| THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income |
| attributable |
| to: |
--------------------------------------------------------------------------------
| Shareholders | 30.5 | 16.7 | 47.9 | 47.1 | | 64.0 |
| of the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | -0.4 | -0.2 | -0.3 | -0.4 | | -1.2 |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | | |
--------------------------------------------------------------------------------
| ASSETS | 30.6.2010 | | 30.6.2009 | | 31.12.2009 |
--------------------------------------------------------------------------------
| Non-current assets | | | | | |
--------------------------------------------------------------------------------
| Goodwill | 73.9 | | 59.5 | | 71.5 |
--------------------------------------------------------------------------------
| Intangible assets | 65.3 | | 61.1 | | 65.8 |
--------------------------------------------------------------------------------
| Property, plant and | 99.4 | | 75.5 | | 91.3 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Advance payments and | 15.9 | | 10.1 | | 11.8 |
| construction in progress | | | | | |
--------------------------------------------------------------------------------
| Investments accounted for | 32.8 | | 8.2 | | 4.5 |
| using the equity method | | | | | |
--------------------------------------------------------------------------------
| Available-for-sale | 1.6 | | 2.0 | | 1.8 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Long-term loans receivable | 3.0 | | 2.5 | | 2.7 |
--------------------------------------------------------------------------------
| Deferred tax assets | 43.7 | | 33.7 | | 37.3 |
--------------------------------------------------------------------------------
| Total non-current assets | 335.7 | | 252.7 | | 286.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | | |
--------------------------------------------------------------------------------
| Inventories | | | | | |
--------------------------------------------------------------------------------
| Raw material and | 120.5 | | 156.2 | | 125.0 |
| semi-manufactured goods | | | | | |
--------------------------------------------------------------------------------
| Work in progress | 156.7 | | 154.8 | | 114.3 |
--------------------------------------------------------------------------------
| Advance payments | 11.1 | | 11.6 | | 8.9 |
--------------------------------------------------------------------------------
| Total inventories | 288.3 | | 322.6 | | 248.2 |
--------------------------------------------------------------------------------
| Accounts receivable | 263.6 | | 298.5 | | 265.4 |
--------------------------------------------------------------------------------
| Loans receivable | 2.6 | | 3.9 | | 2.9 |
--------------------------------------------------------------------------------
| Other receivables | 27.2 | | 25.5 | | 23.5 |
--------------------------------------------------------------------------------
| Deferred assets | 132.9 | | 113.4 | | 96.1 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 95.1 | | 96.9 | | 137.5 |
--------------------------------------------------------------------------------
| Total current assets | 809.8 | | 860.7 | | 773.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 1,145.5 | | 1,113.4 | | 1,060.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | | | | | |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 30.6.2010 | | 30.6.2009 | | 31.12.2009 |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | |
| equity holders of the | | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Share capital | 30.1 | | 30.1 | | 30.1 |
--------------------------------------------------------------------------------
| Share premium account | 39.3 | | 39.3 | | 39.3 |
--------------------------------------------------------------------------------
| Fair value reserves | -2.3 | | 2.5 | | 2.3 |
--------------------------------------------------------------------------------
| Translation difference | 10.2 | | -17.1 | | -18.4 |
--------------------------------------------------------------------------------
| Paid in capital | 10.3 | | 8.7 | | 9.0 |
--------------------------------------------------------------------------------
| Retained earnings | 288.0 | | 273.9 | | 276.6 |
--------------------------------------------------------------------------------
| Net profit for the period | 24.0 | | 45.2 | | 63.6 |
--------------------------------------------------------------------------------
| Total equity attributable | 399.5 | | 382.6 | | 402.5 |
| to equity holders of the | | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 5.6 | | 2.8 | | 4.6 |
--------------------------------------------------------------------------------
| Total equity | 405.1 | | 385.4 | | 407.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 38.1 | | 34.3 | | 38.6 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Other long-term liabilities | 57.9 | | 56.4 | | 56.1 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 17.2 | | 18.6 | | 18.6 |
--------------------------------------------------------------------------------
| Total non-current | 113.2 | | 109.3 | | 113.3 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Provisions | 59.3 | | 42.9 | | 61.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities
--------------------------------------------------------------------------------
| Interest-bearing | 81.7 | | 104.4 | | 26.9 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Advance payments received | 178.4 | | 175.2 | | 156.7 |
--------------------------------------------------------------------------------
| Progress billings | 11.7 | | 21.1 | | 18.9 |
--------------------------------------------------------------------------------
| Accounts payable | 87.7 | | 73.3 | | 83.7 |
--------------------------------------------------------------------------------
| Other short-term | 17.5 | | 17.6 | | 13.8 |
| liabilities (non-interest | | | | | |
| bearing) | | | | | |
--------------------------------------------------------------------------------
| Accruals | 190.8 | | 184.2 | | 178.7 |
--------------------------------------------------------------------------------
| Total current liabilities | 567.8 | | 575.9 | | 478.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 740.4 | | 728.0 | | 653.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | 1,145.5 | | 1,113.4 | | 1,060.4 |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity |
--------------------------------------------------------------------------------
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
| EUR | Share | Share premium | Share | Cash | Trans- |
| million | capital | account | issue | flow | lation |
| | | | | hedge | diffe- |
| | | | | | rence |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | 2.3 | -18.4 |
| 1 January, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| Option | | | | | |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | |
| issue | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | |
| based | | | | | |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Business | | | | | |
| combi | | | | | |
| nations | | | | | |
--------------------------------------------------------------------------------
| Total | | | | -4.7 | 28.6 |
| compre- | | | | | |
| hensive income | | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | -2.3 | 10.2 |
| 30 June, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.1 | 0.9 | -17.4 |
| 1 January, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Option | | | | | |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share | | | -0.1 | | |
| issue | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | |
| based | | | | | |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Employee | | | | | |
| benefit | | | | | |
| scheme for | | | | | |
| executive | | | | | |
| management | | | | | |
| * | | | | | |
--------------------------------------------------------------------------------
| Change of | | | | | |
| control in | | | | | |
| associated | | | | | |
| company** | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 1.6 | 0.3 |
| compre- | | | | | |
| hensive income | | | | |
--------------------------------------------------------------------------------
| Balance at | 30.1 | 39.3 | 0.0 | 2.5 | -17.1 |
| 30 June, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity attributable to equity
holders of the parent company
--------------------------------------------------------------------------------
| EUR | Paid | Retained | Total | Minority | Total |
| million | in | earnings | | interest | equity |
| | capital | | | |
--------------------------------------------------------------------------------
| Balance at | 9.0 | 340.2 | 402.5 | 4.6 | 407.1 |
| 1 January, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| Option | 1.3 | | 1.3 | | 1.3 |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share | | | 0.0 | | 0.0 |
| issue | | | | | |
--------------------------------------------------------------------------------
| Dividends | | -53.5 | -53.5 | 0.5 | -53.0 |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share | | 1.8 | 1.8 | | 1.8 |
| based | | | | | |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Business | | -0.6 | -0.6 | 0.8 | 0.2 |
| combi- | | | | | |
| nations | | | | | |
--------------------------------------------------------------------------------
| Total | | 24.0 | 47.9 | -0.3 | 47.7 |
| compre- | | | | | |
| hensive income | | | | |
--------------------------------------------------------------------------------
| Balance at | 10.3 | 312.0 | 399.5 | 5.6 | 405.1 |
| 30 June, | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 7.3 | 338.5 | 398.8 | 1.9 | 400.7 |
| 1 January, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Option | 1.4 | | 1.4 | | 1.4 |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Share | | | -0.1 | | -0.1 |
| issue | | | | | |
--------------------------------------------------------------------------------
| Dividends | | -53.3 | -53.3 | | -53.3 |
| paid to | | | | | |
| equity | | | | | |
| holders | | | | | |
--------------------------------------------------------------------------------
| Share | | 1.6 | 1.6 | | 1.6 |
| based | | | | | |
| payments | | | | | |
| recognized | | | | | |
| against | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| Employee | | -8.4 | -8.4 | 1.3 | -7.1 |
| benefit | | | | | |
| scheme for | | | | | |
| executive | | | | | |
| management | | | | | |
| * | | | | | |
--------------------------------------------------------------------------------
| Change of | | -4.6 | -4.6 | | -4.6 |
| control in | | | | | |
| associated | | | | | |
| company** | | | | | |
--------------------------------------------------------------------------------
| Total | | 45.2 | 47.1 | -0.4 | 46.7 |
| compre- | | | | | |
| hensive income | | | | |
--------------------------------------------------------------------------------
| Balance at | 8.7 | 319.1 | 382.6 | 2.8 | 385.4 |
| 30 June, | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Consolidation of KCR Management Oy (incentive arrangement for Konecranes |
| Group executive management) |
--------------------------------------------------------------------------------
| ** Increase of Konecranes' influence in the management of associated company |
| ZAO Zaporozhje Kran in Ukraine. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement |
--------------------------------------------------------------------------------
| EUR million | 1-6/ | | 1-6/ | | 1-12/ |
| | 2010 | | 2009 | | 2009 |
--------------------------------------------------------------------------------
| Cash flow from operating activities |
--------------------------------------------------------------------------------
| Net income | 23.3 | | 44.9 | | 62.5 |
--------------------------------------------------------------------------------
| Adjustments to | | | | | |
| net income | | | | | |
--------------------------------------------------------------------------------
| Taxes | 9.9 | | 17.9 | | 26.1 |
--------------------------------------------------------------------------------
| Financial income | 0.4 | | 1.4 | | 7.5 |
| and expenses | | | | | |
--------------------------------------------------------------------------------
| Share of | -1.1 | | 1.4 | | 2.2 |
| associates' and | | | | | |
| joint ventures' | | | | | |
| result | | | | | |
--------------------------------------------------------------------------------
| Dividend income | -0.2 | | 0.0 | | -0.4 |
--------------------------------------------------------------------------------
| Depreciation and | 15.3 | | 13.3 | | 32.5 |
| impairments | | | | | |
--------------------------------------------------------------------------------
| Profits and | 0.0 | | 0.4 | | 0.6 |
| losses on sale of | | | | | |
| fixed assets | | | | | |
--------------------------------------------------------------------------------
| Other adjustments | 0.9 | | 0.0 | | 1.8 |
--------------------------------------------------------------------------------
| Operating income | 48.5 | | 79.3 | | 132.9 |
| before change in | | | | | |
| net working | | | | | |
| capital | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 5.9 | | 112.1 | | 171.8 |
| interest-free | | | | | |
| short-term | | | | | |
| receivables | | | | | |
--------------------------------------------------------------------------------
| Change in | -20.3 | | 15.0 | | 94.9 |
| inventories | | | | | |
--------------------------------------------------------------------------------
| Change in | 2.2 | | -94.0 | | -111.9 |
| interest-free | | | | | |
| short-term | | | | | |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Change in net | -12.2 | | 33.1 | | 154.8 |
| working capital | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from | 36.3 | | 112.4 | | 287.7 |
| operations before | | | | | |
| financing items | | | | | |
| and taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest received | 1.4 | | 0.5 | | 1.2 |
--------------------------------------------------------------------------------
| Interest paid | -2.2 | | -2.9 | | -4.6 |
--------------------------------------------------------------------------------
| Other financial | -6.1 | | 1.2 | | -1.6 |
| income and | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -35.2 | | -44.2 | | -59.6 |
--------------------------------------------------------------------------------
| Financing items | -42.1 | | -45.4 | | -64.6 |
| and taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash from | -5.8 | | 67.0 | | 223.0 |
| operating | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities |
--------------------------------------------------------------------------------
| Acquisition of | -5.2 | | -2.8 | | -12.3 |
| Group companies, | | | | | |
| net of cash | | | | | |
--------------------------------------------------------------------------------
| Divestment of | 0.0 | | 0.6 | | -0.4 |
| Group companies, | | | | | |
| net of cash | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | -27.0 | | 0.0 | | 0.0 |
| shares in | | | | | |
| associated | | | | | |
| companies | | | | | |
--------------------------------------------------------------------------------
| Investments in | 0.0 | | -0.1 | | -0.2 |
| other shares | | | | | |
--------------------------------------------------------------------------------
| Capital | -12.9 | | -11.8 | | -29.7 |
| expenditures | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | 0.9 | | 0.5 | | 0.9 |
| sale of fixed | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Dividends | 0.2 | | 0.0 | | 0.4 |
| received | | | | | |
--------------------------------------------------------------------------------
| Net cash used in | -44.0 | | -13.6 | | -41.2 |
| investing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | -49.8 | | 53.3 | | 181.8 |
| financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities |
--------------------------------------------------------------------------------
| Proceeds from | 1.1 | | 1.3 | | 1.7 |
| options exercised | | | | | |
| and share issues | | | | | |
--------------------------------------------------------------------------------
| Related Party net | 0.0 | | -7.1 | | -7.1 |
| investment to | | | | | |
| Konecranes Plc | | | | | |
| shares | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | 0.0 | | 102.4 | | 132.6 |
| long-term borrowings | | | | | |
--------------------------------------------------------------------------------
| Repayments of | -1.9 | | -177. | | -207.2 |
| long-term borrowings | | | 3 | | |
--------------------------------------------------------------------------------
| Proceeds from (+), | 46.1 | | 80.9 | | -8.4 |
| payments of (-) | | | | | |
| short-term | | | | | |
| borrowings | | | | | |
--------------------------------------------------------------------------------
| Change in long-term | -0.3 | | -0.6 | | -0.9 |
| receivables | | | | | |
--------------------------------------------------------------------------------
| Change in short-term | 0.8 | | -3.5 | | -2.6 |
| receivables | | | | | |
--------------------------------------------------------------------------------
| Dividends paid to | -53.0 | | -53.3 | | -53.3 |
| equity holders of | | | | | |
| the parent | | | | | |
--------------------------------------------------------------------------------
| Net cash used in | -7.3 | | -57.2 | | -145.2 |
| financing activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | 14.7 | | -0.1 | | 0.0 |
| differences in cash | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change of cash and | -42.4 | | -4.0 | | 36.6 |
| cash equivalents | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash | 137.5 | | 100.9 | | 100.9 |
| equivalents at | | | | | |
| beginning of period | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 95.1 | | 96.9 | | 137.5 |
| equivalents at end | | | | | |
| of period | | | | | |
--------------------------------------------------------------------------------
| Change of cash and | -42.4 | | -4.0 | | 36.6 |
| cash equivalents | | | | | |
--------------------------------------------------------------------------------
The effect of changes in exchange rates has been eliminated by converting the
beginning balance at the rates current on the last day of the reporting period.
--------------------------------------------------------------------------------
| Segment | | | | | | |
| information | | | | | | |
--------------------------------------------------------------------------------
| 1. BUSINESS | | | | | | |
| SEGMENTS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | | | | | | |
--------------------------------------------------------------------------------
| Orders received | 1-6/ | % of | 1-6/ | % of | 1-12/ | % of |
| by Business Area | 2010 | total | 2009 | total | 2009 | total |
--------------------------------------------------------------------------------
| Service 1) | 298.9 | 42 | 252.0 | 35 | 498.4 | 35 |
--------------------------------------------------------------------------------
| Equipment | 415.7 | 58 | 466.5 | 65 | 934.6 | 65 |
--------------------------------------------------------------------------------
| ./. Internal | -29.7 | | -39.3 | | -84.1 | |
--------------------------------------------------------------------------------
| Total | 684.9 | 100 | 679.3 | 100 | 1,348.9 | 100 |
--------------------------------------------------------------------------------
| 1) Excl. Service | | | | | | |
| Contract Base | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | 30.6. | % of | 30.6. | % of | 31.12. | % of |
| | 2010 | total | 2009 | total | 2009 | total |
--------------------------------------------------------------------------------
| Order book total | | | | | | |
| 2) | | | | | | |
--------------------------------------------------------------------------------
| Service | 106.5 | 15 | 93.9 | 14 | 75.9 | 12 |
--------------------------------------------------------------------------------
| Equipment | 598.3 | 85 | 599.0 | 86 | 547.8 | 88 |
--------------------------------------------------------------------------------
| ./. Internal | -19.5 | | -12.2 | | -16.8 | |
--------------------------------------------------------------------------------
| Total | 685.2 | 100 | 680.6 | 100 | 607.0 | 100 |
--------------------------------------------------------------------------------
| 2) Percentage of | | | | | | |
| completion | | | | | | |
| deducted | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Sales by Business | 1-6/ | % of | 1-6/ | % of | 1-12/ | % of |
| Area | 2010 | total | 2009 | total | 2009 | total |
--------------------------------------------------------------------------------
| Service | 323.2 | 44 | 339.2 | 36 | 667.2 | 37 |
--------------------------------------------------------------------------------
| Equipment | 407.5 | 56 | 597.6 | 64 | 1,115.1 | 63 |
--------------------------------------------------------------------------------
| ./. Internal | -47.4 | | -63.1 | | -111.1 | |
--------------------------------------------------------------------------------
| Total | 683.3 | 100 | 873.7 | 100 | 1,671.3 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1-6/2010| | 1-6/2009 | | 1-12/2009 | |
| (EBIT) by | | | | | | |
| Business Area | | | | | | |
--------------------------------------------------------------------------------
| excluding | MEUR | EBIT % | MEUR | EBIT | MEUR | EBIT % |
| restructuring | | | | % | | |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Service | 25.8 | 8.0 | 31.3 | 9.2 | 61.0 | 9.1 |
--------------------------------------------------------------------------------
| Equipment | 17.9 | 4.4 | 47.3 | 7.9 | 76.7 | 6.9 |
--------------------------------------------------------------------------------
| Group costs and | -8.8 | | -11.1 | | -18.9 | |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| Total | 35.0 | 5.1 | 67.5 | 7.7 | 118.8 | 7.1 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1-6/2010| | 1-6/2009 | | 1-12/2009 | |
| (EBIT) by | | | | | | |
| Business Area | | | | | | |
--------------------------------------------------------------------------------
| including | MEUR | EBIT % | MEUR | EBIT | MEUR | EBIT % |
| restructuring | | | | % | | |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Service | 25.8 | 8.0 | 30.6 | 9.0 | 58.3 | 8.7 |
--------------------------------------------------------------------------------
| Equipment | 15.3 | 3.7 | 46.0 | 7.7 | 58.5 | 5.2 |
--------------------------------------------------------------------------------
| Group costs and | -8.8 | | -11.1 | | -18.9 | |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| Total | 32.3 | 4.7 | 65.6 | 7.5 | 97.9 | 5.9 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Capital Employed | 1-6/ | | 1-6/ | | 1-12 | |
| and ROCE% | 2010 | | 2009 | | /2009 | |
--------------------------------------------------------------------------------
| | MEUR | | MEUR | | MEUR | ROCE % |
--------------------------------------------------------------------------------
| Service | 151.2 | | 156.4 | | 130.7 | 43.8 |
--------------------------------------------------------------------------------
| Equipment | 234.7 | | 274.9 | | 208.7 | 22.9 |
--------------------------------------------------------------------------------
| Unallocated | 139.2 | | 92.9 | | 133.2 | |
| Capital Employed | | | | | | |
--------------------------------------------------------------------------------
| Total | 524.9 | | 524.1 | | 472.6 | 19.3 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Personnel by | 30.6. | % of | 30.6. | % of | 31.12. | % of |
| Business Area | 2010 | total | 2009 | total | 2009 | total |
--------------------------------------------------------------------------------
| (at the end of | | | | | | |
| the period) | | | | | | |
--------------------------------------------------------------------------------
| Service | 4,938 | 52 | 5,210 | 54 | 4,991 | 51 |
--------------------------------------------------------------------------------
| Equipment | 4,583 | 48 | 4,429 | 46 | 4,742 | 48 |
--------------------------------------------------------------------------------
| Group staff | 49 | 1 | 52 | 1 | 49 | 1 |
--------------------------------------------------------------------------------
| Total | 9,570 | 100 | 9,691 | 100 | 9,782 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 2. GEOGRAPHICAL | | | | | | |
| SEGMENTS | | | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | | | |
--------------------------------------------------------------------------------
| Sales by market | 1-6/2010| % of | 1-6/2009 | % of | 1-12/2009 | % of |
| | | total | | total | | total |
--------------------------------------------------------------------------------
| Europe-Middle | 362.9 | 53 | 482.7 | 55 | 928.0 | 56 |
| East-Africa | | | | | | |
| (EMEA) | | | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 210.4 | 31 | 254.0 | 29 | 479.5 | 29 |
--------------------------------------------------------------------------------
| Asia-Pacific | 110.0 | 16 | 137.0 | 16 | 263.8 | 16 |
| (APAC) | | | | | | |
--------------------------------------------------------------------------------
| Total | 683.3 | 100 | 873.7 | 100 | 1,671.3 | 100 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Personnel by | 30.6. | % of | 30.6. | % of | 31.12. | % of |
| region | 2010 | total | 2009 | total | 2009 | total |
--------------------------------------------------------------------------------
| (at the end of | | | | | | |
| the period) | | | | | | |
--------------------------------------------------------------------------------
| Europe-Middle | 5,431 | 57 | 5,778 | 60 | 5,533 | 57 |
| East-Africa | | | | | | |
| (EMEA) | | | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 2,170 | 23 | 2,410 | 25 | 2,236 | 23 |
--------------------------------------------------------------------------------
| Asia-Pacific | 1,969 | 21 | 1,503 | 16 | 2,013 | 21 |
| (APAC) | | | | | | |
--------------------------------------------------------------------------------
| Total | 9,570 | 100 | 9,691 | 100 | 9,782 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Notes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 30.6.2010 | | 30.6.2009 | Change | 31.12.2009 |
| | | | | % | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.41 | | 0.77 | -46.8 | 1.08 |
| basic (EUR) | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.41 | | 0.76 | -47.0 | 1.08 |
| diluted (EUR) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on capital | 12.7 | | 42.7 | -70.3 | 19.3 |
| employed %, Rolling | | | | | |
| 12 Months (R12M) | | | | | |
--------------------------------------------------------------------------------
| Return on equity %, | 10.3 | | 40.8 | -74.8 | 15.5 |
| Rolling 12 Months | | | | | |
| (R12M) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share | 6.78 | | 6.51 | 4.1 | 6.84 |
| (EUR) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | 1.3 | | 1.4 | -7.1 | 1.4 |
--------------------------------------------------------------------------------
| Gearing % | 4.7 | | 9.1 | -48.4 | -19.1 |
--------------------------------------------------------------------------------
| Solidity % | 41.9 | | 41.1 | 1.9 | 45.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, EUR million | 47.6 | | 78.9 | -39.7 | 130.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments total | 9.3 | | 9.6 | -3.6 | 25.7 |
| (excl. acquisitions), | | | | | |
| EUR million | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing net | 19.0 | | 35.5 | -46.4 | -77.7 |
| debt, EUR million | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net working capital, | 193.0 | | 260.8 | -26.0 | 138.8 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 9,638 | | 9,820 | -1.9 | 9,811 |
| personnel during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 58,885,076| | 59,064,201 | -0.3 | 58,922,323 |
| shares outstanding, | | | | | |
| basic | | | | | |
--------------------------------------------------------------------------------
| Average number of | 59,171,039| | 59,134,828 | 0.1 | 59,085,936 |
| shares outstanding, | | | | | |
| diluted | | | | | |
--------------------------------------------------------------------------------
| Number of shares | 58,953,824| | 58,771,424 | 0.3 | 58,812,624 |
| outstanding | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The period end | 30.6.2010 | | 30.6.2009 | Change % | 31.12.2009 |
| exchange rates*: | | | | | |
--------------------------------------------------------------------------------
| USD - US dollar | 1.226 | | 1.410 | 15.0 | 1.441 |
--------------------------------------------------------------------------------
| CAD - Canadian dollar | 1.281 | | 1.617 | 26.2 | 1.513 |
--------------------------------------------------------------------------------
| GBP - Pound sterling | 0.819 | | 0.854 | 4.4 | 0.888 |
--------------------------------------------------------------------------------
| CNY - Chinese yuan | 8.338 | | 9.633 | 15.5 | 9.835 |
--------------------------------------------------------------------------------
| SGD - Singapore | 1.709 | | 2.049 | 19.9 | 2.019 |
| dollar | | | | | |
--------------------------------------------------------------------------------
| SEK - Swedish krona | 9.574 | | 10.960 | 14.5 | 10.252 |
--------------------------------------------------------------------------------
| NOK - Norwegian krone | 7.978 | | 9.040 | 13.3 | 8.300 |
--------------------------------------------------------------------------------
| AUD - Australian | 1.418 | | 1.746 | 23.1 | 1.601 |
| dollar | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The period average | 30.6.2010 | | 30.6.2009 | Change % | 31.12.2009 |
| exchange rates*: | | | | | |
--------------------------------------------------------------------------------
| USD - US dollar | 1.330 | | 1.331 | 0.1 | 1.395 |
--------------------------------------------------------------------------------
| CAD - Canadian dollar | 1.375 | | 1.606 | 16.8 | 1.585 |
--------------------------------------------------------------------------------
| GBP - Pound sterling | 0.872 | | 0.895 | 2.7 | 0.891 |
--------------------------------------------------------------------------------
| CNY - Chinese yuan | 9.078 | | 9.093 | 0.2 | 9.529 |
--------------------------------------------------------------------------------
| SGD - Singapore | 1.858 | | 1.987 | 6.9 | 2.024 |
| dollar | | | | | |
--------------------------------------------------------------------------------
| SEK - Swedish krona | 9.796 | | 10.865 | 10.9 | 10.618 |
--------------------------------------------------------------------------------
| NOK - Norwegian krone | 8.008 | | 8.890 | 11.0 | 8.726 |
--------------------------------------------------------------------------------
| AUD - Australian | 1.487 | | 1.883 | 26.7 | 1.773 |
| dollar | | | | | |
--------------------------------------------------------------------------------
*Konecranes applies a weekly calendar in its financial reporting. The presented
exchange rates are determined by rates on the last Friday of the period.
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES AND PLEDGED | | | | |
| ASSETS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | 30.6.2010| | 30.6.2009 | | 31.12.2009 |
| | | | | | |
--------------------------------------------------------------------------------
| For own commercial | | | | | |
| obligations | | | | | |
--------------------------------------------------------------------------------
| Guarantees | 365.2 | | 212.4 | | 212.0 |
--------------------------------------------------------------------------------
| Leasing liabilities | | | | | |
--------------------------------------------------------------------------------
| Next year | 30.4 | | 30.4 | | 27.7 |
--------------------------------------------------------------------------------
| Later on | 69.8 | | 73.1 | | 71.3 |
--------------------------------------------------------------------------------
| Other | 0.1 | | 0.2 | | 0.2 |
--------------------------------------------------------------------------------
| Total | 465.5 | | 315.9 | | 311.1 |
--------------------------------------------------------------------------------
Leasing contracts comply with normal practices in the countries concerned.
Contingent liabilities relating to litigation
Various legal actions, claims and other proceedings are pending against the
Group in various countries. These actions, claims and other proceedings are
typical for this industry and consistent with a global business offering that
encompasses a wide range of products and services. These matters involve
contractual disputes, warranty claims, product liability (including design
defects, manufacturing defects, failure to warn and asbestos legacy),
employment, vehicles and other matters involving claims of general liability.
While the final outcome of these matters cannot be predicted with certainty
Konecranes is of the opinion, based on the information available to date and
considering the grounds presented for such claims, the available insurance
coverage and the reserves made, that the outcome of such actions, claims and
other proceedings, if unfavourable, would not have a material, adverse impact on
the financial condition of the Group.
--------------------------------------------------------------------------------
| NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS |
--------------------------------------------------------------------------------
| EUR million | 30.6. | 30.6. | 30.6. | 30.6. | 31.12. | 31.12. |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Nominal| Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
| | | | | | | |
--------------------------------------------------------------------------------
| Foreign exchange | 202.4 | -5.4 | 196.2 | 4.3 | 129.5 | 2.6 |
| forward | | | | | | |
| contracts | | | | | | |
--------------------------------------------------------------------------------
| Electricity | 2.0 | 0.0 | 1.7 | -0.3 | 2.1 | -0.2 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Total | 204.4 | -5.4 | 197.9 | 4.0 | 131.6 | 2.5 |
--------------------------------------------------------------------------------
Derivatives are used for hedging currency and interest rate risks, as well as
the risk of electricity price fluctuations. The Company applies hedge accounting
on the derivatives used to hedge cash flows in large projects in Business Area
Equipment.
ACQUISITIONS
During January-June, Konecranes made three small acquisitions which related to
machine tool service (MTS) business in Denmark and in the United Kingdom.
The preliminary fair values of the identifiable assets and liabilities of the
acquired businesses at date of acquisitions are summarized below.
--------------------------------------------------------------------------------
| EUR million | 30.6.2010 | 30.6.2010 |
--------------------------------------------------------------------------------
| | Recognized | Carrying |
| | on | value |
| | acquisition | |
--------------------------------------------------------------------------------
| Intangible assets | 1.2 | 0.0 |
--------------------------------------------------------------------------------
| Tangible assets | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Inventories | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Account receivables and other assets | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Cash and bank | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Total assets | 1.9 | 0.7 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.2 | 0.0 |
--------------------------------------------------------------------------------
| Accounts payable | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Other liabilities | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Total liabilities | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Net assets | 1.5 | 0.5 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Acquisition costs | 2.5 | |
--------------------------------------------------------------------------------
| Goodwill | 1.1 | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash outflow on acquisition | | |
--------------------------------------------------------------------------------
| Acquisition costs | 2.5 | |
--------------------------------------------------------------------------------
| Liabilities assumed | -1.0 | |
--------------------------------------------------------------------------------
| Acquisition costs paid in cash | 1.5 | |
--------------------------------------------------------------------------------
| Cash and cash equivalents of acquired companies | -0.3 | |
--------------------------------------------------------------------------------
| Net cash flow arising on acquisition | 1.2 | |
--------------------------------------------------------------------------------
Acquisition of associated company:
On March 23, 2010 Konecranes purchased 29,750 shares (22.0% of the share capital
and voting rights) in the Japanese hoist, crane and material handling equipment
company Kito Corporation (""Kito""). The purchase price for the shares in Kito
was JPY 111,800 per share. The total value of the stake purchased amounted to
approximately JPY 3.3 billion (EUR 27 million).
The purchase was financed with existing cash reserves.
Furthermore, Kito repurchased 10.0% of the share capital on March 24, 2010. Post
the share purchase by Konecranes and the Kito share buyback. Konecranes has
approximately 24.4% of the voting rights in Kito.
Increase in ownership interest of a subsidiary:
In June 04, 2010 Konecranes finalized the agreement to increase its ownership in
Japanese company MHS Konecranes Co., Ltd. to 100% by acquiring the remaining 35%
stake from Meidensha Corporation. The purchase price was recognized as decrease
of minority interest and retained earnings.
--------------------------------------------------------------------------------
| Quarterly figures |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF INCOME, QUARTERLY |
--------------------------------------------------------------------------------
| EUR | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| million | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 377.0 | 306.3 | 428.9 | 368.7 | 431.6 | 442.1 |
--------------------------------------------------------------------------------
| Other | 0.8 | 0.8 | 1.1 | 0.4 | 0.8 | 0.7 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Depreci- | -8.0 | -7.3 | -11.8 | -7.4 | -6.5 | -6.8 |
| ation and | | | | | | |
| impairments| | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Restructu- | -2.7 | 0.0 | -5.1 | -13.9 | -1.9 | 0.0 |
| ring costs | | | | | | |
--------------------------------------------------------------------------------
| Other | -346.4 | -288.2 | -390.9 | -337.7 | -395.1 | -399.2 |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating | 20.7 | 11.6 | 22.2 | 10.2 | 28.8 | 36.8 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| Share of | 0.9 | 0.1 | -0.2 | -0.7 | -1.4 | 0.0 |
| associates | | | | | | |
| ' and | | | | | | |
| joint | | | | | | |
| ventures' | | | | | | |
| result | | | | | | |
--------------------------------------------------------------------------------
| Financial | -0.9 | 0.7 | -3.4 | -2.3 | 0.0 | -1.5 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Profit | 20.8 | 12.4 | 18.6 | 7.2 | 27.4 | 35.4 |
| before | | | | | | |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Taxes | -6.2 | -3.7 | -5.2 | -3.0 | -7.8 | -10.1 |
--------------------------------------------------------------------------------
| Net profit | 14.5 | 8.8 | 13.4 | 4.2 | 19.6 | 25.3 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, QUARTERLY |
--------------------------------------------------------------------------------
| EUR | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| million | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| ASSETS | | | | | | |
--------------------------------------------------------------------------------
| Goodwill | 73.9 | 72.8 | 71.5 | 64.4 | 59.5 | 58.4 |
--------------------------------------------------------------------------------
| Intangible | 65.3 | 66.5 | 65.8 | 60.5 | 61.1 | 61.3 |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Property, | 99.4 | 96.1 | 91.3 | 76.6 | 75.5 | 72.7 |
| plant and | | | | | | |
| equipment | | | | | | |
--------------------------------------------------------------------------------
| Other | 97.2 | 89.5 | 58.1 | 54.8 | 56.5 | 48.8 |
--------------------------------------------------------------------------------
| Total | 335.7 | 324.9 | 286.7 | 256.3 | 252.7 | 241.2 |
| non-current| | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories| 288.3 | 271.1 | 248.2 | 303.0 | 322.6 | 356.7 |
| | | | | | | |
--------------------------------------------------------------------------------
| Receivables| 426.4 | 395.5 | 387.9 | 400.5 | 441.3 | 468.3 |
| and | | | | | | |
| other | | | | | | |
| current | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 95.1 | 121.1 | 137.5 | 88.5 | 96.9 | 116.0 |
| cash | | | | | | |
| equivalents| | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Total | 809.8 | 787.8 | 773.7 | 792.1 | 860.7 | 941.0 |
| current | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1,145.5 | 1 112,7 | 1 060,4 | 1 048,4 | 1 113,4 | 1 182,2 |
| assets | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 405.1 | 373.7 | 407.1 | 389.1 | 385.4 | 379.7 |
| equity | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current| 113.2 | 111.8 | 113.3 | 93.5 | 109.3 | 180.4 |
| liabilities| | | | | | |
| | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Provisions | 59.3 | 58.6 | 61.1 | 54.9 | 42.9 | 46.9 |
--------------------------------------------------------------------------------
| Advance | 178.4 | 183.4 | 156.7 | 157.3 | 175.2 | 197.1 |
| payments | | | | | | |
| received | | | | | | |
--------------------------------------------------------------------------------
| Other | 389.5 | 385.3 | 322.2 | 353.6 | 400.6 | 378.2 |
| current | | | | | | |
| liabilities| | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Total | 740.4 | 739.0 | 653.3 | 659.3 | 728.0 | 802.6 |
| liabilities| | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1,145.5 | 1,112.7 | 1,060.4 | 1,048.4 | 1,113.4 | 1,182.2 |
| equity and | | | | | | |
| liabilities| | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT - QUARTERLY |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
|
-------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating income | 29.2 | 19.3 | 36.4 | 17.2 | 35.4 | 43.9 |
| before change in | | | | | | |
| net working | | | | | | |
| capital | | | | | | |
--------------------------------------------------------------------------------
| Change in net | -23.0 | 10.8 | 64.4 | 57.4 | 23.6 | 9.5 |
| working capital | | | | | | |
--------------------------------------------------------------------------------
| Financing items | -12.5 | -29.6 | -10.8 | -8.4 | -24.6 | -20.8 |
| and taxes | | | | | | |
--------------------------------------------------------------------------------
| Net cash from | -6.3 | 0.5 | 89.9 | 66.2 | 34.4 | 32.6 |
| operating | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from | -9.0 | -35.0 | -18.4 | -9.2 | -8.7 | -5.0 |
| investing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | -15.3 | -34.5 | 71.5 | 57.0 | 25.7 | 27.6 |
| financing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds from | 0.2 | 0.9 | 0.2 | 0.2 | 0.6 | 0.7 |
| options | | | | | | |
| exercised and | | | | | | |
| share issues | | | | | | |
--------------------------------------------------------------------------------
| Related Party | 0.0 | 0.0 | 0.0 | 0.0 | -7.1 | 0.0 |
| net investment | | | | | | |
| to Konecranes | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Change of | 34.6 | 10.0 | -24.1 | -64.2 | -36.9 | 38.8 |
| interest-bearing | | | | | | |
| debt | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -53.0 | 0.0 | 0.0 | 0.0 | 0.0 | -53.3 |
| to equity | | | | | | |
| holders of the | | | | | | |
| parent | | | | | | |
--------------------------------------------------------------------------------
| Net cash used in | -18.2 | 10.9 | -23.9 | -64.0 | -43.4 | -13.8 |
| financing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | 7.6 | 7.1 | 1.5 | -1.4 | -1.4 | 1.3 |
| differences in | | | | | | |
| cash | | | | | | |
--------------------------------------------------------------------------------
| Change of cash | -26.0 | -16.5 | 49.1 | -8.4 | -19.1 | 15.1 |
| and cash | | | | | | |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash | 121.1 | 137.5 | 88.5 | 96.9 | 116.0 | 100.9 |
| equivalents at | | | | | | |
| beginning of | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 95.1 | 121.1 | 137.5 | 88.5 | 96.9 | 116.0 |
| equivalents at | | | | | | |
| end of period | | | | | | |
--------------------------------------------------------------------------------
| Change of cash | -26.0 | -16.5 | 49.1 | -8.4 | -19.1 | 15.1 |
| and cash | | | | | | |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
QUARTERLY SEGMENT INFORMATION
--------------------------------------------------------------------------------
EUR million
Orders received Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
by Business Area
--------------------------------------------------------------------------------
| Service 1) | 159.1 | 139.8 | 121.8 | 124.5 | 126.4 | 125.6 |
--------------------------------------------------------------------------------
| Equipment | 219.6 | 196.2 | 262.2 | 205.9 | 202.6 | 263.9 |
--------------------------------------------------------------------------------
| ./. Internal | -14.3 | -15.4 | -22.9 | -22.0 | -19.5 | -19.8 |
--------------------------------------------------------------------------------
| Total | 364.4 | 320.6 | 361.1 | 308.5 | 309.6 | 369.7 |
--------------------------------------------------------------------------------
| 1) Excl. Service | | | | | | |
| Contract Base | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Order book by Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Business Area
-------------------------------------------------------------------------------
| Service | 106.5 | 87.7 | 75.9 | 88.1 | 93.9 | 109.1 |
--------------------------------------------------------------------------------
| Equipment | 598.3 | 558.2 | 547.8 | 565.6 | 599.0 | 701.9 |
--------------------------------------------------------------------------------
| ./. Internal | -19.5 | -4.6 | -16.8 | -15.3 | -12.2 | -19.0 |
--------------------------------------------------------------------------------
| Total | 685.2 | 641.3 | 607.0 | 638.4 | 680.6 | 792.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales by Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Business Area
--------------------------------------------------------------------------------
| Service | 175.2 | 148.0 | 170.5 | 157.6 | 169.5 | 169.7 |
--------------------------------------------------------------------------------
| Equipment | 221.6 | 185.8 | 284.0 | 233.5 | 293.0 | 304.6 |
--------------------------------------------------------------------------------
| ./. Internal | -19.8 | -27.6 | -25.6 | -22.4 | -30.9 | -32.2 |
--------------------------------------------------------------------------------
| Total | 377.0 | 306.3 | 428.9 | 368.7 | 431.6 | 442.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
(EBIT) by
Business Area
--------------------------------------------------------------------------------
| excluding | | | | | | |
| restructuring | | | | | | |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Service | 16.0 | 9.8 | 15.8 | 13.9 | 15.6 | 15.7 |
--------------------------------------------------------------------------------
| Equipment | 11.9 | 6.0 | 15.4 | 14.0 | 20.5 | 26.8 |
--------------------------------------------------------------------------------
| Group costs and | -4.5 | -4.3 | -3.9 | -3.9 | -5.4 | -5.7 |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| Total | 23.4 | 11.6 | 27.3 | 24.0 | 30.7 | 36.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
margin. (EBIT %)
by Business Area
--------------------------------------------------------------------------------
| excluding | | | | | | |
| restructuring | | | | | | |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Service | 9.1 % | 6.6 % | 9.3 % | 8.8 % | 9.2 % | 9.3 % |
--------------------------------------------------------------------------------
| Equipment | 5.4 % | 3.3 % | 5.4 % | 6.0 % | 7.0 % | 8.8 % |
--------------------------------------------------------------------------------
| Group EBIT % | 6.2 % | 3.8 % | 6.4 % | 6.5 % | 7.1 % | 8.3 % |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Personnel by Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Business Area
--------------------------------------------------------------------------------
| (at the end of | | | | | | |
| the period) | | | | | | |
--------------------------------------------------------------------------------
| Service | 4,938 | 4,926 | 4,991 | 5,033 | 5,210 | 5,494 |
--------------------------------------------------------------------------------
| Equipment | 4,583 | 4,586 | 4,742 | 4,334 | 4,429 | 4,317 |
--------------------------------------------------------------------------------
| Group staff | 49 | 50 | 49 | 52 | 52 | 55 |
--------------------------------------------------------------------------------
| Total | 9,570 | 9,562 | 9,782 | 9,419 | 9,691 | 9,866 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales by market Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
--------------------------------------------------------------------------------
| Europe-Middle | 189.9 | 173.0 | 244.2 | 201.0 | 236.3 | 246.4 |
| East-Africa | | | | | | |
| (EMEA) | | | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 123.8 | 86.6 | 113.7 | 111.9 | 121.2 | 132.7 |
--------------------------------------------------------------------------------
| Asia-Pacific | 63.3 | 46.7 | 71.1 | 55.7 | 74.0 | 63.0 |
| (APAC) | | | | | | |
--------------------------------------------------------------------------------
| Total | 377.0 | 306.3 | 428.9 | 368.7 | 431.6 | 442.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Personnel by Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
region
--------------------------------------------------------------------------------
| (at the end of | | | | | | |
| the period) | | | | | | |
--------------------------------------------------------------------------------
| Europe-Middle | 5,431 | 5,466 | 5,533 | 5,646 | 5,778 | 5,626 |
| East-Africa | | | | | | |
| (EMEA) | | | | | | |
--------------------------------------------------------------------------------
| Americas (AME) | 2,170 | 2,171 | 2,236 | 2,298 | 2,410 | 2,654 |
--------------------------------------------------------------------------------
| Asia-Pacific | 1,969 | 1,925 | 2,013 | 1,475 | 1,503 | 1,586 |
| (APAC) | | | | | | |
--------------------------------------------------------------------------------
| Total | 9,570 | 9,562 | 9,782 | 9,419 | 9,691 | 9,866 |
--------------------------------------------------------------------------------
Analyst and press briefing
An analyst and press conference will be held at G.W. Sundmans' Auditorium
(address Eteläranta 16) at 12.00 p.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 with the possibility to ask questions through
web will begin at 12.00 p.m. at www.konecranes.com. An on-demand version of the
webcast will be available on the company's website later the same day.
Next report
Konecranes' January-September 2009 interim report will be published on October
21, 2010.
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 2009, Group sales totaled EUR 1.671 million. The Group has 9.600
employees, at 545 locations in 43 countries. Konecranes is listed on NASDAQ OMX
Helsinki Ltd (symbol: KCR1V).
DISTRIBUTION Media
NASDAQ OMX Helsinki
www.konecranes.com
© 2024 Nasdaq, Inc. All Rights Reserved |