2013-07-24 08:00:01 CEST
2013-07-24 08:00:08 CEST
REGULATED INFORMATION
Konecranes Oyj - Interim report (Q1 and Q3)
SATISFACTORY ORDER INTAKE, SECOND QUARTER OPERATING PROFIT LOWER THAN LAST YEAR
KONECRANES PLC INTERIM REPORT July 24, 2013 at 9:00 a.m.
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier
SECOND QUARTER HIGHLIGHTS
- Order intake EUR 503.0 million (553.7), -9.2 percent; Service +5.3 percent
and Equipment -14.1 percent.
- Order book EUR 1,079.4 million (1,122.8) at end-June, 3.9 percent lower than
a year ago, 0.4 percent lower than at end-March 2013.
- Sales EUR 519.9 million (562.5), -7.6 percent; Service -1.1 percent and
Equipment -12.7 percent.
- Operating profit EUR 17.2 million (35.1), 3.3 percent of sales (6.2), was
burdened by lower sales and additional project costs of approximately EUR 8
million.
- Earnings per share (diluted) EUR 0.19 (0.40).
- Net cash flow from operating activities EUR -32.3 million (16.6).
- Net debt EUR 269.6 million (275.2) and gearing 63.0 percent (64.3).
- EUR 30 million cost savings plan announced in a separate stock exchange
release on July 24, 2013.
JANUARY-JUNE HIGHLIGHTS
- Order intake EUR 1,085.7 million (1,088.3), -0.2 percent; Service +2.2
percent and Equipment -0.6 percent.
- Sales EUR 1,015.8 million (1,036.5), -2.0 percent; Service +0.0 percent and
Equipment -3.8 percent.
- Operating profit excluding restructuring costs EUR 40.3 million (59.0), 4.0
percent of sales (5.7).
- Restructuring costs EUR 4.3 million (0.0).
- Operating profit including restructuring costs EUR 36.1 million (59.0), 3.5
percent of sales (5.7).
- Earnings per share (diluted) EUR 0.38 (0.64).
- Net cash flow from operating activities EUR -0.1 million (28.6).
MARKET OUTLOOK
Demand is expected to be stable or slightly lower compared to the second
quarter of 2013. However, due to the timing of large crane projects, the
quarterly Equipment order intake may fluctuate.
FINANCIAL GUIDANCE
Based on the order book and the near-term demand outlook, the year 2013 sales
are expected to be stable or slightly higher than in 2012. We expect the 2013
operating profit, excluding restructuring costs, to be approximately on the
same level as in 2012.
The clear second half 2013 earnings recovery incorporated in the financial
guidance is based on the good order intake during the first half of 2013,
product mix in the order book as well as the announced restructuring actions.
The financial guidance includes an assumption of a continued satisfactory order
intake in the third quarter of 2013.
KEY FIGURES Second quarter First half year
--------------------------------------------------------------------------------
4-6/20 4-6/20 Change 1-6/201 1-6/201 Change R12M 2012
13 12 % 3 2 %
--------------------------------------------------------------------------------
Orders 503.0 553.7 -9.2 1,085.7 1,088.3 -0.2 1,967.5 1,970.1
received,
MEUR
--------------------------------------------------------------------------------
Order book 1,079.4 1,122.8 -3.9 942.7
at end of
period,
MEUR
--------------------------------------------------------------------------------
Sales total, 519.9 562.5 -7.6 1,015.8 1,036.5 -2.0 2,150.8 2,171.5
MEUR
--------------------------------------------------------------------------------
EBITDA 28.3 45.9 -38.3 61.6 79.6 -22.6 161.8 179.7
excluding
restructuri
ng costs,
MEUR
--------------------------------------------------------------------------------
EBITDA 5.4 8.2 6.1 7.7 7.5 8.3
excluding
restructuri
ng costs, %
--------------------------------------------------------------------------------
Operating 17.2 35.1 -50.8 40.3 59.0 -31.7 119.5 138.3
profit
excluding
restructuri
ng costs,
MEUR
--------------------------------------------------------------------------------
Operating 3.3 6.2 4.0 5.7 5.6 6.4
margin
excluding
restructuri
ng costs, %
--------------------------------------------------------------------------------
EBITDA, MEUR 28.3 45.9 -38.3 57.6 79.6 -27.7 154.8 176.8
--------------------------------------------------------------------------------
EBITDA, % 5.4 8.2 5.7 7.7 7.2 8.1
--------------------------------------------------------------------------------
Operating 17.2 35.1 -50.8 36.1 59.0 -38.9 109.5 132.5
profit,
MEUR
--------------------------------------------------------------------------------
Operating 3.3 6.2 3.5 5.7 5.1 6.1
margin, %
--------------------------------------------------------------------------------
Profit 15.8 32.9 -52.1 31.3 53.4 -41.4 102.1 124.2
before
taxes, MEUR
--------------------------------------------------------------------------------
Net profit 11.1 23.1 -52.0 22.0 37.5 -41.4 69.3 84.8
for the
period,
MEUR
--------------------------------------------------------------------------------
Earnings per 0.19 0.40 -51.8 0.38 0.65 -41.2 1.20 1.47
share,
basic, EUR
--------------------------------------------------------------------------------
Earnings per 0.19 0.40 -51.7 0.38 0.64 -41.1 1.20 1.46
share,
diluted,
EUR
--------------------------------------------------------------------------------
Gearing, % 63.0 64.3 39.3
--------------------------------------------------------------------------------
Return on 14.1 18.4
capital
employed %,
Rolling 12
Months
(R12M)
--------------------------------------------------------------------------------
Free cash -48.3 3.7 -26.7 4.3 70.6 101.6
flow, MEUR
--------------------------------------------------------------------------------
Average 12,056 11,777 2.4 11,917
number of
personnel
during the
period
--------------------------------------------------------------------------------
President and CEO Pekka Lundmark:
“As already announced in June, our second quarter result was short of the
previous year's corresponding period, and it did not meet our expectations. The
low delivery volume did not come as a surprise since the weak order intake at
the end of 2012 now came through in deliveries. The result, however, was
further burdened by unexpected high realized and estimated costs of EUR 8
million in certain heavy industrial crane projects. We expect a clear earnings
recovery towards the year-end on the basis of the order intake during the first
half of 2013, product mix in the order book as well as the announced
restructuring actions.
The key positive element in the quarter was the all-time high order intake in
our service business. Even though our order intake was reasonably good also in
the equipment business, we cannot base our plans on the expectation that the
world economy would provide a lot help to our growth. The tough pricing
environment is also expected to continue. Our overall cost is too high for our
volume outlook, and, therefore, we are now planning actions to lower our cost
base by EUR 30 million by the end of 2014. In addition, we are preparing
several initiatives in order to further rationalize our supply chain to push
down our variable product cost. There is potential for savings in our
non-personnel related spending as well, but, unfortunately, effects to
personnel cannot be avoided.
Lowering fixed cost and improving supply chain efficiency are necessary in our
current situation, but they are by no means our only way to improve
profitability. The development of technology increasing differentiation from
the competition and improving pricing power is intensifying. A good example is
the recently launched Automated Rubber Tired Gantry (ARTG) crane that makes the
automation of existing container yards a viable alternative. Second example is
our new family of services, TRUCONNECT®, that provides real-time usage and
condition monitoring of customers' equipment. Another major initiative is to
create a totally new product family mainly for emerging markets. What is
typical for these products is that they offer a good set of basic features
without ever compromising safety or quality. The third investment area is the
renewal of our ways of working and fragmented information systems. This program
is currently about halfway and it offers a substantial potential for the
internal productivity improvement. What is common to the above three strategic
initiatives is that they all require new skills. The development of competence
of our personnel will therefore, be the key in all of them.”
DISCLOSURE PROCEDURE
Konecranes follows the disclosure procedure enabled by Disclosure obligation of
the issuer (7/2013) published by the Finnish Financial Supervision Authority.
This stock exchange release is a summary of Konecranes Plc's January-June 2013
interim report. The complete report is attached to this release in pdf format
and is also available on Konecranes' website at www.konecranes.com.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at KÄMP Kansallissali (address
Aleksanterinkatu 44 A, 2. floor) at 11.00 a.m. Finnish time. The Interim Report
will be presented by Konecranes' President and CEO Pekka Lundmark and CFO Teo
Ottola.
A live webcast of the conference will begin at 11.00 a.m. at
www.konecranes.com. Please see the stock exchange release dated July 5, 2013
for the conference call details.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
Mr Pekka Lundmark, President and CEO, tel. +358 20 427 2000
Mr Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr Mikael Wegmüller, Vice President, Marketing and Communications, tel. +358 20
427 2008
Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2012, Group sales totaled EUR 2,170 million. The Group has 11,900
employees at 626 locations in 48 countries. Konecranes is listed on the NASDAQ
OMX Helsinki (symbol: KCR1V).
DISTRIBUTION
NASDAQ OMX Helsinki
Media
www.konecranes.com
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