2016-10-26 08:00:03 CEST
2016-10-26 08:00:03 CEST
REGULATED INFORMATION
Konecranes Oyj - Interim report (Q1 and Q3)
Konecranes Plc's Interim Report January-September 2016
KONECRANES PLC INTERIM REPORT October 26, 2016 at 9:00 a.m.
PROFITABILITY IMPROVEMENT CONTINUED
This stock exchange release is a summary of Konecranes Plc’s interim report
January-September 2016. The complete report is attached to this release in pdf
format and is also available on Konecranes’ website at www.konecranes.com.
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier
THIRD QUARTER HIGHLIGHTS
- Order intake EUR 420.3 million (443.8), -5.3 percent
- Order book EUR 987.7 million (1,075.3) at end-September, -8.1 percent
- Sales EUR 517.6 million (506.7), +2.1 percent
- Adjusted operating profit* EUR 37.9 million (33.3), 7.3 percent of sales (6.6)
- Adjustments* EUR -12.9 million (-29.1)
- Operating profit EUR 25.0 million (4.1), 4.8 percent of sales (0.8)
- Earnings per share (diluted) EUR 0.27 (0.02)
- Net cash flow from operating activities EUR 33.4 million (47.1)
- Net debt EUR 183.5 million (228.5) and gearing 44.0 percent (53.1)
JANUARY-SEPTEMBER HIGHLIGHTS
- Order intake EUR 1,325.6 million (1,452.9), -8.8 percent
- Sales EUR 1,505.0 million (1,517.2), -0.8 percent
- Adjusted operating profit* EUR 88.7 million (73.2), 5.9 percent of sales (4.8)
- Adjustments* EUR -34.8 million (-40.9)
- Operating profit EUR 53.9 million (32.2), 3.6 percent of sales (2.1)
- Earnings per share (diluted) EUR 0.46 (0.31)
- Net cash flow from operating activities EUR 47.6 million (-1.6)
*Adjustments (corresponding to term non-recurring items in 2015) include
restructuring costs, transaction costs related to the terminated merger plan
with Terex, and proposed acquisition of Terex MHPS and related activities,
unwarranted payments due to identity theft and fraudulent actions (in the third
quarter of 2015), and insurance indemnity and returned funds related to
identity theft and fraudulent actions (in the second and third quarter of
2016). Konecranes’ management believes that the adjusted operating profit is
relevant to understanding the comparable financial performance when comparing
the result for the current period with the previous periods.
MARKET OUTLOOK
Customers are cautious about investing due to the lack of volume growth in
manufacturing and process industries, as well as container handling. The
companies operating in emerging and commodity markets are particularly under
pressure to save costs. Certain market uncertainty continues in North America.
The demand situation in Europe is mixed. A decline in the global container
throughput has led to a slower decision-making among container terminal
operators. The quarterly Equipment order intake may fluctuate due to the timing
of the large port crane projects.
FINANCIAL GUIDANCE
Based on the order book, service contract base and the near-term demand
outlook, the sales in 2016 are expected to be at approximately the same level
as in 2015. We expect the 2016 adjusted operating profit to improve from 2015.
KEY FIGURES Third quarter January - September
--------------------------------------------------------------------------------
7-9/ 7-9/ Change 1-9/ 1-9/ Change R12M 2015
2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Orders 420.3 443.8 -5.3 1,325.6 1,452.9 -8.8 1,838.2 1,965.5
received,
MEUR
--------------------------------------------------------------------------------
Order book 987.7 1,075.3 -8.1 1,036.5
at end of
period,
MEUR
--------------------------------------------------------------------------------
Sales total, 517.6 506,7 2.1 1,505.0 1,517.2 -0.8 2,114.0 2,126.2
MEUR
--------------------------------------------------------------------------------
Adjusted 50.1 45.2 10.9 126.8 109.5 15.9 183.9 166.5
EBITDA,
MEUR *)
--------------------------------------------------------------------------------
Adjusted 9.7% 8.9% 8.4% 7.2% 8.7% 7.8%
EBITDA, %
*)
--------------------------------------------------------------------------------
Adjusted 37.9 33.3 13.9 88.7 73.2 21.2 133.2 117.7
operating
profit,
MEUR *)
--------------------------------------------------------------------------------
Adjusted 7.3% 6.6% 5.9% 4.8% 6.3% 5.5%
operating
margin, %
*)
--------------------------------------------------------------------------------
EBITDA, MEUR 37.3 16.2 130.0 94.9 74.4 27.6 137.6 117.1
--------------------------------------------------------------------------------
EBITDA, % 7.2% 3.2% 6.3% 4.9% 6.5% 5.5%
--------------------------------------------------------------------------------
Operating 25.0 4.1 504.5 53.9 32.2 67.2 84.7 63.0
profit,
MEUR
--------------------------------------------------------------------------------
Operating 4.8% 0.8% 3.6% 2.1% 4.0% 3.0%
margin, %
--------------------------------------------------------------------------------
Profit 21.3 2.0 962.7 36.6 26.8 36.9 65.2 55.4
before
taxes, MEUR
--------------------------------------------------------------------------------
Net profit 15.8 1.2 1,178.9 26.7 18.2 46.9 39.3 30.8
for the
period,
MEUR
--------------------------------------------------------------------------------
Earnings per 0.27 0.02 1,213.3 0.46 0.31 46.3 0.67 0.53
share,
basic, EUR
--------------------------------------------------------------------------------
Earnings per 0.27 0.02 1,209.5 0.46 0.31 46.3 0.67 0.53
share,
diluted,
EUR
--------------------------------------------------------------------------------
Gearing, % 44.0% 53.1% 44.6%
--------------------------------------------------------------------------------
Return on 10.9% 9.5%
capital
employed %
--------------------------------------------------------------------------------
Free cash 26.5 39.6 29.7 -26.2 54.6 -1.4
flow, MEUR
--------------------------------------------------------------------------------
Average 11,509 11,946 -3.7 11,934
number of
personnel
during the
period
--------------------------------------------------------------------------------
*) Adjustments (corresponding to term non-recurring items in 2015) include
restructuring costs, transaction costs related to the terminated merger plan
with Terex and proposed acquisition of Terex MHPS and related activities,
unwarranted payments due to identity theft and fraudulent actions (in the third
quarter of 2015), and insurance indemnity and returned funds related to
identity theft and fraudulent actions (in the second and third quarter of
2016). See also note 12 in the interim report.
President and CEO Panu Routila:
“Our profitability continued to improve in the third quarter. The adjusted
operating profit rose by EUR 4.6 million or by 14 percent in the quarter. Group
adjusted operating margin rose from 6.6 percent to 7.3 percent. Sales grew by
2.1 percent on a year-on-year basis.
Lower fixed costs continued to support the operating margin in Business Area
Service and Business Area Equipment. As a result of restructuring actions, the
Group’s total number of personnel decreased by 790 employees in the first three
quarters of 2016. A reduction of 347 employees was realized in the third
quarter.
Group sales growth was generated by Business Area Equipment, in which port
crane deliveries increased according to the delivery schedule of the order
book. On the other hand, sales development in Business Area Service was still
sluggish. The demand in various commodity-related markets continued to be
depressed and industrial activity was slow in various parts of the world.
Our key target for the fourth quarter is to build our order book to secure a
solid starting point for 2017. On October 24, we announced that Konecranes has
received a Notice of Intent to Award Contracts (the Award) from the Virginia
Port Authority in the USA. The Award covers the provision of 86 Automated
Stacking Cranes. Deliveries are scheduled in phases for 2018-2020. The value of
the contracts will exceed EUR 200 million. This will be the largest deal in the
history of Konecranes.
The pending acquisition of the Material Handling & Port Solutions business from
Terex Corporation reached important milestones in the third quarter. The
committed financing facilities to fund the proposed acquisition were
syndicated. We received approval from the European Commission that is
conditional on the divestment of the STAHL CraneSystems business. Also, the
United States Department of Justice cleared the pending acquisition.
Furthermore, the Konecranes’ Extraordinary General Meeting made the necessary
decisions to complete the acquisition. In the beginning of the fourth quarter,
we received clearance from the Committee on Foreign Investment in the United
States. Konecranes and Terex are working closely with the competition
authorities in the remaining jurisdictions to obtain regulatory approvals
allowing completion of the acquisition in early 2017 as planned.”
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at the restaurant Savoy’s
Salikabinetti (address: Eteläesplanadi 14) at 11.00 a.m. Finnish time. The
Interim Report will be presented by Konecranes’ President and CEO Panu Routila
and CFO Teo Ottola.
A live webcast of the conference will begin at 11.00 a.m. at
www.konecranes.com. Please see the stock exchange release dated October 5, 2016
for the conference call details.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
Mr. Panu Routila, President and CEO, tel. +358 20 427 2000
Mr. Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr. Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr. Mikael Wegmüller, Vice President, Marketing and Communications, tel. +358
20 427 2008
Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2015, Group sales totaled EUR 2,126 million. The Group has 11,100
employees at 600 locations in 48 countries. Konecranes is listed on Nasdaq
Helsinki (symbol: KCR1V).
DISTRIBUTION
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www.konecranes.com
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