2010-02-04 08:30:00 CET
2010-02-04 08:30:14 CET
REGULATED INFORMATION
Konecranes Oyj - Financial Statement Release
SOLID PERFORMANCE IN A TOUGH MARKET
KONECRANES PLC FINANCIAL STATEMENTS BULLETIN February 4, 2010 at 9:30 a.m. SOLID PERFORMANCE IN A TOUGH MARKET Figures in brackets, unless otherwise stated, refer to the same period a year earlier FOURTH QUARTER HIGHLIGHTS - Order intake EUR 361.1 million (409.6), -11.8 percent: Service -23.5 percent, Standard Lifting -24.0 percent, Heavy Lifting +12.9 percent. - Order book at year-end was EUR 607.0 million (836.3), -27.4 percent compared with a year before. - Sales EUR 428.9 million (650.4), -34.1 percent: Service -22.7 percent, Standard Lifting -38.5 percent, Heavy Lifting -41.4 percent. - Operating profit before restructuring costs totaled EUR 27.3 million (76.5) and 6.4 percent (11.8) of sales. - Restructuring costs in the fourth quarter totaled EUR 5.1 million. - Operating profit, including restructuring costs, EUR 22.2 million (76.5), 5.2 percent of sales (11.8). - Net cash flow from operating activities EUR 89.9 million (33.5). - Strong cash flow resulted in net cash of EUR 77.7 million (net debt of 11.3) and gearing of -19.1 percent (2.8). FULL YEAR 2009 HIGHLIGHTS - Orders received EUR 1,348.9 million (2,067.1), -34.7 percent: Service -24.3 percent, Standard Lifting -39.8 percent, Heavy Lifting -38.0 percent. - Sales EUR 1,671.3 million (2,102.5), -20.5 percent: Service -11.5 percent, Standard Lifting -21.9 percent, Heavy Lifting -27.3 percent. - Operating profit before restructuring costs totaled EUR 118.8 million (248.7), 7.1 percent (11.8) of sales. - Restructuring costs in 2009 totaled EUR 20.9 million. - Operating profit, including restructuring costs, EUR 97.9 million (248.7), 5.9 percent of sales (11.8). - Net cash flow from operating activities EUR 223.0 million (107.1). - Profit before taxes EUR 88.6 million (236.2). - Earnings per share (diluted) EUR 1.08 (2.82). - Dividend proposed by Board of Directors is EUR 0.90 (0.90) per share. FUTURE PROSPECTS Despite a slight pick-up in industrial output in the second half of 2009, Konecranes expects the uncertainty to continue, with no credible signs of market recovery visible. The demand for maintenance services is expected to remain stable or to increase gradually should capacity utilization within customer industries continue to improve. The demand for new equipment is expected to remain generally on a low level, and to suffer from overcapacity at customers. Price competition is likely to remain. A high degree of fluctuation between quarters may continue due to the timing of orders. The year 2010 began with a thinner order book than the previous year. 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 | Fourth quarter | January - December | -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | | | 2009 | 2008 | % | 2009 | 2008 | % | -------------------------------------------------------------------------------- | Orders received, | 361.1 | 409.6 | -11.8 | 1,348.9 | 2,067.1 | -34.7 | | MEUR | | | | | | | -------------------------------------------------------------------------------- | Order book at end | 607.0 | 836.3 | -27.4 | 607.0 | 836.3 | -27.4 | | of period, MEUR | | | | | | | -------------------------------------------------------------------------------- | Sales total, MEUR | 428.9 | 650.4 | -34.1 | 1,671.3 | 2,102.5 | -20.5 | -------------------------------------------------------------------------------- | Operating profit | 27.3 | 76.5 | -64.3 | 118.8 | 248.7 | -52.2 | | excluding | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 6.4 % | 11.8 % | | 7.1 % | 11.8 % | | | excluding | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 22.2 | 76.5 | -71.0 | 97.9 | 248.7 | -60.6 | | including | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 5.2 % | 11.8 % | | 5.9 % | 11.8 % | | | including | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Profit before | 18.6 | 73.8 | -74.8 | 88.6 | 236.2 | -62.5 | | taxes, MEUR | | | | | | | -------------------------------------------------------------------------------- | Net profit for the | 13.4 | 50.0 | -73.3 | 62.5 | 166.6 | -62.5 | | period, MEUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.23 | 0.85 | -72.6 | 1.08 | 2.83 | -61.9 | | share, basic, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.23 | 0.85 | -72.5 | 1.08 | 2.82 | -61.8 | | share, diluted, | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | Gearing, % | | | | -19.1 % | 2.8 % | | -------------------------------------------------------------------------------- | Return on capital | | | | 19.3 % | 56.3 % | | | employed % | | | | | | | -------------------------------------------------------------------------------- | Average number of | | | | 9,811 | 9,222 | | | personnel during | | | | | | | | the period | | | | | | | -------------------------------------------------------------------------------- President and CEO Pekka Lundmark: “2009 proved out to be at least as challenging as expected. Capacity utilization at our key customer segments remained weak throughout the year, and most customers continued to be cautious in their investment decisions. The demand for services was also affected, since the equipment we maintain was in many cases used much less than before. Our order intake dropped 34.7 percent from the record level seen in 2008. Since we started the year with a strong order book, sales dropped less than orders, 20.5 percent, to EUR 1,671.3 million. In this situation, it was necessary to reduce our capacity, while continuing our investments for the future. A lot of the complexity that our recent acquisitions had created in our organization was removed, resulting in a more streamlined structure for future growth. As a part of this process, we announced the shutdown of three factories and a reduction of more than 1,600 jobs. We also made progress in developing our procurement structure, improving our purchase price position in relation to market prices for certain components, raw materials, and services. These measures helped us maintain our financial result on a reasonable level in spite of lower volumes and some price pressure caused by overcapacity in the industry. We delivered a 7.1 percent operating margin before restructuring costs and a 19.3 percent return on capital employed, which was a successful defense in difficult market conditions. Looking to the future, there are some positive signs that give cause for cautious optimism. Industrial capacity utilization rates started to recover during the second half of 2009 and we have seen several customers start planning capital expenditure projects again. These early signs suggest that the demand for lifting equipment and services could begin growing again during 2010. However, due to the relatively late cyclical nature of most of our business segments, it is still too early to conclude that a major recovery could be imminent. We will be in a strong position once the market recovers. As I mentioned earlier, we have continued to invest throughout the recession. While reducing manufacturing capacity, we have invested in our remaining factories. We have also increased our investment in training. Product development has proceeded at full speed, and we have added new products and services to our offering. We made a total of ten acquisitions during 2009. Even after all these investments, we ended the year with a debt-free balance sheet, with a net cash position of EUR 77.7 million. This puts us in a good position when the consolidation of our fragmented industry continues.” REPORT OF THE BOARD OF DIRECTORS 2009 MARKET REVIEW The steep recession that hit the world economy in the last quarter of 2008 continued throughout 2009 and made the year a challenging one, resulting in a weak market for the material handling industry. There were some variations between regions and different product segments, but virtually half of the equipment market disappeared compared to 2008. Few significant differences occurred in demand between regions in 2009, with the exception of China, where the continued economic growth boosted by major government stimulus packages resulted in a higher level of investment. The slow economic conditions affected demand for new equipment across customer segments. Demand from the manufacturing and process industries remained weak throughout the year, while investment activity in the energy sector remained more stable. Investments in Konecranes' two other key customer industries, ports and shipbuilding, were significantly affected by the decline in shipping volumes. Towards the end of 2009, activity revived somewhat in the waste-to-energy, steel, petrochemical and mining sectors. Weakened demand resulted in overcapacity in the crane manufacturing industry, and led to intense price competition. The service market also suffered, but to a lesser extent than equipment demand. Customers devoted increasing attention in 2009 to cost-cutting measures and improving their efficiency. This was reflected in a growing interest in outsourcing service operations, although lower industrial capacity utilization reduced the total amount of service and maintenance work carried out. Outsourcing continues to be concentrated in industrialized countries, while customers also in developing markets have started to show a growing interest in what outsourcing of service operations can offer. Input costs trended down during 2009. Steel prices were at a lower level in 2009 compared with 2008 and there was deflation in other procurement categories as well. There were signs of increasing cost pressures on steel, copper and sea freight towards the end of the year, but this did not have a material impact on paid costs. The US dollar depreciated against the euro towards the end of 2009. Global macro data improved towards the end of 2009. Capacity utilization rates in manufacturing industries started slowly to improve as production rates gradually picked up. Surveys of purchasing managers from China to Europe and the US in the final month of 2009 gave better results than expected. Note: Unless otherwise stated, the figures in brackets in the sections below refer to the same period in the previous year. ORDERS RECEIVED In 2009 orders received declined by 34.7 percent to EUR 1,348.9 million (2,067.1). The demand for equipment declined more than for service. The order intake declined by 39.8 percent in Standard Lifting and 38.0 percent in Heavy Lifting, whereas the decline in Service was 24.3 percent. New orders declined almost equally in AME and EMEA, and both areas were faced with clearly lower demand for industrial and process cranes in particular. The order decline was somewhat smaller in APAC, where all business held up better than in AME and EMEA. Process crane orders grew in APAC. Fourth-quarter order intake declined by 11.8 percent from a year earlier but increased by 17.1 percent from the third quarter to EUR 361.1 million (409.6). Development was positive in Heavy Lifting, where orders grew by 12.9 percent from a year ago and by 42.6 percent compared to the third quarter. The improvement was boosted by a limited number of large single orders. Standard Lifting orders recovered from the unsatisfactory third quarter, but Service orders remained sequentially flat. Group's new orders developed positively in EMEA and APAC, but negatively in AME compared with the third quarter. Orders from emerging markets accounted for more than 30 percent of total orders in 2009, but for less than 30 percent in the fourth quarter. ORDER BOOK The value of the order book at year-end 2009 totaled EUR 607.0 million (836.3), which is 27.4 percent lower than at end 2008. The order book decreased by 4.9 percent from the third quarter when it stood at EUR 638.4 million. Order cancellations remained low throughout 2009. The breakdown by Business Area for the year-end order book was as follows: Service EUR 75.9 million (12 percent), Standard Lifting EUR 192.1 million (31 percent) and Heavy Lifting EUR 353.8 million (57 percent). SALES Group sales in full year 2009 decreased by 20.5 percent and totaled EUR 1,671.3 million (2,102.5). Sales in Service decreased by 11.5 percent, in Standard Lifting by 21.9 percent and in Heavy Lifting by 27.3 percent. Fourth-quarter sales fell by 34.1 percent from the corresponding period in 2008 to EUR 428.9 million (650.4). Service declined by 22.7 percent, Standard Lifting by 38.5 percent and Heavy Lifting by 41.4 percent. In 2009, the regional breakdown was as follows: EMEA 56 (57), Americas 29 (28) and APAC 16 (14) percent. Net sales by region, MEUR -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | Change % | | | 2009 | 2008 | percent | 2009 | 2008 | percent | at | | | | | | | | | comparable | | | | | | | | | currency | | | | | | | | | rates | -------------------------------------------------------------------------------- | EMEA | 244.2 | 380.3 | -35.8 | 928.0 | 1,207.5 | -23.2 | -20.5 | -------------------------------------------------------------------------------- | AME | 113.7 | 178.1 | -36.2 | 479.5 | 591.7 | -19.0 | -22.0 | -------------------------------------------------------------------------------- | APAC | 71.1 | 92.0 | -22.8 | 263.8 | 303.3 | -13.0 | -14.6 | -------------------------------------------------------------------------------- | Total | 428.9 | 650.4 | -34.1 | 1,671.3 | 2,102.5 | -20.5 | -20.1 | -------------------------------------------------------------------------------- CURRENCY RATE EFFECT In a year-on-year comparison, currency rates did not have a material effect on orders or sales in January-December. The order intake declined by 34.7 percent as reported and by 34.1 percent at comparable currency rates. Sales declined by 20.5 percent as reported and by 20.1 percent at comparable currency rates. Of the regions, the currency rate impact on sales in EMEA was negative, with the reported decrease being 23.2 percent compared with a decrease at comparable currency rates of 20.5 percent. The impact was positive in the Americas region, where reported sales declined 19.0 percent and 22.0 percent at comparable currency rates. The corresponding figures in APAC were -13.0 percent and -14.6 percent. In January-December currency rates had a slight positive impact on the Group's operating profit compared with the same period a year earlier. FINANCIAL RESULT The consolidated operating profit in full year 2009 totaled EUR 97.9 million (248.7). The operating profit includes restructuring costs of EUR 20.9 million. The consolidated operating margin declined to 5.9 percent (11.8). The operating margin in Service declined to 10.6 percent (14.1), in Standard Lifting to 7.6 percent (16.8) and in Heavy Lifting to 7.1 percent (8.1). Procurement cost savings and adjustment of production capacity largely offset product price pressure. The consolidated operating profit in the fourth quarter totaled EUR 22.2 million (76.5), including restructuring costs of EUR 5.1 million. The consolidated operating margin in the fourth quarter declined to 5.2 percent (11.8). The operating margin declined in Service to 10.5 percent (15.1) and in Standard Lifting to 7.2 percent (15.7) but increased in Heavy Lifting to 9.4 percent (8.6). The implemented cost savings lowered fixed costs towards the year-end, which partly offset the under absorption of the cost base. In 2009 depreciation and impairments totaled EUR 32.5 million (26.6). Goodwill write-downs totaled EUR 3.7 million (0.2), and they were booked in the fourth quarter. The write-downs related mainly to Standard Lifting. In 2009 the share of the result of associated companies and joint ventures was EUR -2.2 million (-3.9). Net financial expenses totaled EUR 7.1 million (8.6). Net interest expense accounted for EUR 2.2 million (5.9) of this, and the remainder was mainly attributable to unrealized exchange rate differences relating to the hedging of future cash flows that are not included in hedge accounting. Profit before taxes was EUR 88.6 million (236.2). Income taxes were EUR 26.1 million (69.6). The Group's effective tax rate was 29.5 percent (29.5). Net profit was EUR 62.5 million (166.6). Basic earnings per share were EUR 1.08 (2.83) and diluted earnings per share were EUR 1.08 (2.82). Return on capital employed was 19.3 percent (56.3) and return on equity 15.5 percent (48.9). BALANCE SHEET The year-end 2009 consolidated balance sheet amounted to EUR 1,060.4 million (1,205.4). Total equity at the end of the report period was EUR 407.1 million (400.7). Total equity attributable to equity holders of the parent company at year-end 2009 was EUR 402.5 million (398.8) or EUR 6.84 per share (6.75). Net working capital at year-end 2009 totaled EUR 138.8 million, which was EUR 72.3 million less than at the end of the third quarter and EUR 125.0 million less than at year-end 2008. The decrease in receivables and inventories more than offset the decrease in advance payments. In the fourth quarter inventory turnover improved in particular. CASH FLOW AND FINANCING Net cash flow from operating activities in full year 2009 was EUR 223.0 million (107.1), representing EUR 3.79 per share (1.82). In the fourth quarter, net cash flow from operating activities was EUR 89.9 million (33.5). Cash flow was boosted by the successful release of net working capital both in full year 2009 and in the fourth quarter. Due to the strong cash flow, interest-bearing net debt was EUR -77.7 million at the end of 2009, compared to EUR 11.3 million at end 2008. Solidity was 45.1 percent (39.9) and gearing -19.1 percent (2.8). The Group's liquidity remained healthy. At the end of the fourth quarter, cash and cash equivalents amounted to EUR 137.5 million (100.9). None of the Group's EUR 200 million committed back-up financing facility was in use at the end of the period. In the fourth quarter some Group companies in Finland raised EUR 26.5 million by borrowing back funds from the employment pension insurance company used in Finland. Konecranes paid its shareholders dividends amounting to EUR 53.3 million or EUR 0.90 per share in March 2009. CAPITAL EXPENDITURE In 2009, capital expenditure excluding acquisitions amounted to EUR 25.7 million (22.3). This consisted mainly of replacement or capacity expansion investments in machines, equipment and information technology. Capital expenditure including acquisitions was EUR 55.8 million (41.9). Fourth quarter capital expenditure excluding acquisitions was EUR 11.8 million (3.4) and including acquisitions EUR 30.7 million (6.7). ACQUISITIONS Capital expenditure on acquisitions was EUR 30.1 million (19.6). During January-December, Konecranes made ten acquisitions, and sold one minor operation in Austria. The net assets of the acquired companies were recorded at EUR 13.4 million and goodwill of EUR 16.7 million was booked from the acquisitions. During the fourth quarter EUR 18.9 million was spent on four acquisitions. Acquisitions contributed about 1 percentage point to sales in the full year and in the fourth quarter of 2009. Four of the acquisitions related to machine tools service. In July 2009, Konecranes moved into a new business segment by making two acquisitions for load-handling solutions with aluminum rail systems and manipulators. Konecranes increased its ownership in the Austrian company Konecranes Lifting Systems GmbH (formerly ACS Technologies GmbH) from 49.9% to 80% and at the same time acquired the assets of German company Knight Europe GmbH & Co. KG. The two acquired companies had combined net sales in 2008 of approximately EUR 15 million and they employed about 100 people. Konecranes' acquisition of a majority holding in Jiangsu Three Horses Crane Manufacture Co. Ltd. (SANMA), one of the leading hoist and crane manufacturers in China, was finalized in November 2009. Through a combined share purchase and share issue, Konecranes now owns 65% of SANMA. The remaining 35% of the shares are held by the former owners. The company's net sales were approximately EUR 18 million in 2008 and it has more than 500 employees. PERSONNEL The total number of the Group's personnel at year-end 2008, including all the temporary and rented work force, was approximately 10,500. During 2009, decisions were taken to reduce the number of employees by more than 1,600, and almost 1,500 people left the company during the year. The number of personnel increased by almost 1,100 through acquisitions. At year-end 2009, the total headcount including the temporary and rented work force was approximately 10,100. In 2009 the Group employed an average of 9,811 people (9,222). On 31 December, the headcount was 9,782 (9,904). At year-end 2009 the number of personnel by Business Area was as follows: Service 4,891 employees (5,372), Standard Lifting 3,012 employees (2,808), Heavy Lifting 1,603 employees (1,439) and Group staff 276 (285). The Group had 5,533 employees (5,658) working in EMEA, 2,236 (2,619) in the Americas and 2,013 (1,627) in the APAC region. In 2009, the Group's personnel expenses totaled EUR 452.4 million (463.2). An employee satisfaction survey was carried out for the third time in 2009. The results showed an improvement in all the main areas compared to the previous surveys, except in the image of the employer. However, despite a clear deterioration in the results in this area, the image of the employer is still very positive compared to benchmark data. According to the feedback received, people feel that cooperation and conditions for working have improved compared to previous years. In particular, the quality of personnel training was rated higher than in previous years. BUSINESS AREAS Service -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | | | 2009 | 2008 | percen | 2009 | 2008 | percent | | | | | t | | | | -------------------------------------------------------------------------------- | Orders received, | 121.8 | 159.3 | -23.5 | 498.4 | 658.2 | -24.3 | | MEUR | | | | | | | -------------------------------------------------------------------------------- | Order book, MEUR | 75.9 | 117.3 | -35.3 | 75.9 | 117.3 | -35.3 | -------------------------------------------------------------------------------- | Sales, MEUR | 170.5 | 220.6 | -22.7 | 667.2 | 754.3 | -11.5 | -------------------------------------------------------------------------------- | Operating profit | 19.4 | 33.3 | -42.0 | 73.5 | 106.2 | -30.8 | | excluding | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 11.4 % | 15.1 % | | 11.0 % | 14.1 % | | | excluding | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.8 | 33.3 | -46.5 | 70.8 | 106.2 | -33.4 | | including | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 10.5 % | 15.1 % | | 10.6 % | 14.1 % | | | including | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Personnel | 4,891 | 5,372 | -9.0 | 4,891 | 5,372 | -9.0 | -------------------------------------------------------------------------------- Full year 2009 orders received totaled EUR 498.4 million (658.2), showing a decline of 24.3 percent. Orders declined in all service business units. Order intake held up better in APAC than in the other geographic areas. The order book decreased to EUR 75.9 million (117.3) at year-end, representing a decline of 35.3 percent. Sales fell by 11.5 percent to EUR 667.2 million (754.3). Operating profit before restructuring costs of EUR 2.7 million was EUR 73.5 million (106.2) and the operating margin 11.0 percent (14.1). Operating profit after restructuring costs was EUR 70.8 million, 10.6 percent of sales. Although Service successfully defended prices, profitability was negatively affected by lower volumes and the change in product mix, with lower sales of parts and higher labor content. Fourth quarter order intake fell by 23.5 percent from the previous year and totaled EUR 121.8 million (159.3). Sequentially, the order intake remained flat. The parts business showed a slight increase, but the overall performance was held back by the other operations. AME underperformed the other regions. Fourth-quarter sales totaled EUR 170.5 million (220.6), representing a year-over-year decline of 22.7 percent. Fourth-quarter operating profit before EUR 1.5 million restructuring costs was EUR 19.4 million (33.3), and the operating margin 11.4 percent (15.1). Operating profit after restructuring costs was EUR 17.8 million and 10.5 percent of sales. The number of items of equipment in the contract base increased slightly, but the value decreased. On a positive note, Konecranes continued to gain new customers at a stable rate despite the slow economic conditions. On the other hand, contract cancellations increased due to factory shutdowns, and the value was affected because new contracts were smaller than the lost contracts and because contract sizes were scaled down due to lower capacity utilization among the customers. At year-end 2009 the total number of items of equipment included in the maintenance contract base increased to 362,996 from 359,811 a year before. The annual value of the contract base decreased to EUR 122.3 million from EUR 124.1 million at year-end 2008. The number of service technicians at year-end 2009 was 3,222, which is 12.5 percent less than at year-end 2008. Standard Lifting -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | | | 2009 | 2008 | percent | 2009 | 2008 | percent | -------------------------------------------------------------------------------- | Orders received, | 128.4 | 168.9 | -24.0 | 517.0 | 859.0 | -39.8 | | MEUR | | | | | | | -------------------------------------------------------------------------------- | Order book, MEUR | 192.1 | 327.9 | -41.4 | 192.1 | 327.9 | -41.4 | -------------------------------------------------------------------------------- | Sales, MEUR | 157.6 | 256.4 | -38.5 | 652.2 | 835.4 | -21.9 | -------------------------------------------------------------------------------- | Operating profit | 14.4 | 40.3 | -64.2 | 65.3 | 140.0 | -53.4 | | excluding | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 9.2 % | 15.7 % | | 10.0 % | 16.8 % | | | excluding | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 11.3 | 40.3 | -72.0 | 49.7 | 140.0 | -64.5 | | including | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 7.2 % | 15.7 % | | 7.6 % | 16.8 % | | | including | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Personnel | 3,012 | 2,808 | 7.3 | 3,012 | 2,808 | 7.3 | -------------------------------------------------------------------------------- Full year 2009 orders received decreased by 39.8 percent and totaled EUR 517.0 million (859.0). Orders for industrial cranes decreased more than orders for components. The order intake declined clearly in all regions, but somewhat less in APAC than elsewhere. The order book decreased to EUR 192.1 million (327.9) at year-end 2009, representing a decline of 41.4 percent. Sales fell by 21.9 percent to EUR 652.2 million (835.4). Operating profit before restructuring costs of EUR 15.6 million was EUR 65.3 million (140.0) and the operating margin 10.0 percent (16.8). Operating profit after restructuring costs was EUR 49.7 million and 7.6 percent of sales. Profitability was negatively affected by lower volumes and intense price competition. Order intake in the fourth quarter decreased by 24.0 percent and totaled EUR 128.4 million (168.9). New orders increased 11.9 percent compared to the third quarter. The moderate sequential growth in orders following the summer months was led by components in all geographic areas. Fourth-quarter sales totaled EUR 157.6 million (256.4), representing a 38.5 percent decline. During the quarter the sales mix was tilted towards crane deliveries. Fourth-quarter operating profit before EUR 3.1 million restructuring costs was EUR 14.4 million (40.3), and the operating margin 9.2 percent (15.7). Operating profit after restructuring costs was EUR 11.3 million and 7.2 percent of sales. Heavy Lifting -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | | | 2009 | 2008 | percent | 2009 | 2008 | percent | -------------------------------------------------------------------------------- | Orders received, | 131.4 | 116.4 | 12.9 | 425.1 | 686.0 | -38.0 | | MEUR | | | | | | | -------------------------------------------------------------------------------- | Order book, MEUR | 353.8 | 420.2 | -15.8 | 353.8 | 420.2 | -15.8 | -------------------------------------------------------------------------------- | Sales, MEUR | 128.8 | 219.8 | -41.4 | 479.1 | 659.4 | -27.3 | -------------------------------------------------------------------------------- | Operating profit | 12.6 | 18.8 | -33.0 | 36.7 | 53.6 | -31.6 | | excluding | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 9.8 % | 8.6 % | | 7.7 % | 8.1 % | | | excluding | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 12.1 | 18.8 | -35.4 | 34.0 | 53.6 | -36.6 | | including | | | | | | | | restructuring | | | | | | | | costs, MEUR | | | | | | | -------------------------------------------------------------------------------- | Operating margin | 9.4 % | 8.6 % | | 7.1 % | 8.1 % | | | including | | | | | | | | restructuring | | | | | | | | costs, % | | | | | | | -------------------------------------------------------------------------------- | Personnel | 1,603 | 1,439 | 11.4 | 1,603 | 1,439 | 11.4 | -------------------------------------------------------------------------------- Full year 2009 orders received totaled EUR 425.1 million (686.0), showing a decline of 38.0 percent. Order intake fell clearly for all product categories globally. The fall in orders was somewhat smaller in the port equipment business due to a few single large orders. Orders received for process cranes declined sharply in AME and EMEA, but increased in APAC. The order book decreased to EUR 353.8 million (420.2) at year-end 2009, representing a decline of 15.8 percent. Sales decreased by 27.3 percent to EUR 479.1 million (659.4). The decline in sales was attributable to all product segments, while port equipment and lift trucks declined the most. Operating profit before restructuring costs of EUR 2.7 million was EUR 36.7 million (53.6) and the operating margin 7.7 percent (8.1). Operating profit after restructuring costs was EUR 34.0 million and 7.1 percent of sales. Profitability was negatively affected by substantially lower volumes especially in the ports business unit. High-quality project execution helped to maintain good profitability in the process cranes unit year-on-year. The fourth quarter order intake of EUR 131.4 million increased by 42.6 percent from the third quarter and by 12.9 percent from the fourth quarter of 2008. All businesses contributed to the positive performance. Port equipment and lift trucks were boosted by a limited number of single large orders. Fourth-quarter sales totaled EUR 128.8 million (219.8), representing a fall of 41.4 percent. Fourth-quarter operating profit before EUR 0.5 million restructuring costs was EUR 12.6 million (18.8), and the operating margin 9.8 percent (8.6). Operating profit after restructuring costs was EUR 12.1 million and 9.4 percent of sales. Profitability was supported by successful project execution and the cost savings measures carried out. GROUP OVERHEADS Unallocated Group overhead costs in 2009 were EUR 54.6 million (47.2), representing 3.3 percent of sales (2.2). The increase is mainly due to investments in information systems, procurement and R&D. CHANGES IN GROUP MANAGEMENT Konecranes announced in May that it would shift to a two-tiered management structure as of September 1, 2009. The new structure consists of the Group Executive Board and the Extended Management Team. The members of Konecranes' Group Executive Board are: Pekka Lundmark, President and Chief Executive Officer, and Chairman of the Group Executive Board; Hannu Rusanen, Executive Vice President and Head of Business Area Service; Mikko Uhari, Executive Vice President and Head of Business Area Equipment; Harry Ollila, Executive Vice President and Head of Market Operations; Teo Ottola, Chief Financial Officer; Pekka Lettijeff, Chief Procurement Officer and Ari Kiviniitty, Chief Technology Officer. The Extended Management Team comprises the members of the Group Executive Board; the Senior Vice Presidents of the regional organizations; the Vice President, General Counsel; the Vice President, Human Resources; the Vice President, Marketing & Communications; and the Chief Information Officer. ADMINISTRATION Konecranes' Annual General Meeting was held on March 12, 2009. The meeting approved the company's annual accounts for the fiscal year 2008 and discharged the members of the Board and the Managing Director from liability. The AGM approved the Board's proposal to pay a dividend of EUR 0.90 per share from the distributable equity of the parent company. In addition the AGM confirmed the annual compensation to the Board Members and decided to amend Section 9 of the Articles of Association. The AGM also resolved to issue stock options to the key personnel of the Company and its subsidiaries. The AGM approved the proposal of the Nomination and Compensation Committee that eight (8) members of the Board of Directors be elected. Board members Björn Savén and Timo Poranen had announced that they were not available for re-election. Svante Adde, Kim Gran, Stig Gustavson, Matti Kavetvuo, Malin Persson and Mikael Silvennoinen were re-elected. Tomas Billing, President of Nordstjernan AB, and Tapani Järvinen, the then President and CEO of Outotec Oyj, were elected as new members. At its first meeting held after the Annual General Meeting, the Board of Directors elected Stig Gustavson to continue as Chairman. Svante Adde was elected Chairman of the Audit Committee, and Kim Gran, Tapani Järvinen and Mikael Silvennoinen as Committee members. Matti Kavetvuo was elected Chairman of the Nomination and Compensation Committee, and Tomas Billing, Stig Gustavson and Malin Persson were elected as Committee members. The AGM confirmed that Ernst & Young Oy will continue as the Company's external auditor. The decisions are explained in more detail in the release covering the resolutions of the AGM, which is available on the company's website at www.konecranes.com. Konecranes applies the Finnish Corporate Governance Code 2008 for listed companies. The Corporate Governance Statement can be reviewed at the corporate website of Konecranes, www.konecranes.com. SHARE CAPITAL AND SHARES The company's registered share capital at year-end 2009 totaled EUR 30.1 million. At year-end 2009, the number of shares including treasury shares and the shares owned by KCR Management Oy totaled 61,872,920. At year-end 2009, Konecranes held a total of 2,542,600 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 48.5 million. In May, the Konecranes Group's executive management established a company named KCR Management Oy, whose entire share capital is owned by the management. As part of the arrangement, the Board of Directors of Konecranes Plc has resolved to grant KCR Management Oy an interest-bearing loan of a maximum of approximately EUR 7.1 million to finance the acquisition of the Company's shares. The Board of Directors sees this as a way to increase management commitment to long term shareholder value. Shares owned by KCR Management Oy totaled 517,696 at the end of the period. Konecranes has consolidated KCR Management into the Group's balance sheet, which has decreased its equity by EUR 7.1 million. The EGM held on August 31, 2009 authorized 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 12,000,000 shares, which corresponds to approximately 19.4 % of all the shares in the Company. The authorization is effective until the end of the next Annual General Meeting, however no longer than until 11 September 2010. The Board of Directors did not exercise this authorization to issue shares during 2009. The EGM authorized the Board of Directors to decide on the repurchase and/or on the acceptance as pledge of 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 % of all the shares in the Company. However, the Company together with its subsidiaries may not at any moment own and/or hold as pledge more than 10 percent of all the shares in the Company. Only the unrestricted equity of the Company can be used to repurchase own shares on the basis of the authorization. The authorization is effective until the end of the next Annual General Meeting, however no longer than until 11 September 2010. The Board of Directors did not exercise this authorization to buy own shares during 2009. Konecranes has accepted own shares as pledge for the loan of EUR 7.1 million it has granted to KCR Management Oy. The amount of pledged shares totaled 517,696 at year-end 2009. The EGM authorized 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 % 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 11 September 2010. The Board of Directors did not exercise this authorization during 2009. The authorizations are explained in more detail in the release covering the resolutions of the EGM, which is available on the company's website at www.konecranes.com. SHARES SUBSCRIBED UNDER STOCK OPTION RIGHTS Pursuant to Konecranes' stock option plans, 260,600 new shares were subscribed and registered in the Finnish Trade Register in 2009, and 23,200 of these were during the fourth quarter. As the result of these subscriptions, the total number of Konecranes shares (including treasury shares and the shares owned by KCR Management Oy) increased to 61,872,920 shares. The stock options issued under Konecranes Plc's ongoing stock option plans (2001, 2007 and 2009) at year-end 2009 entitle holders to subscribe a total of 2,773,400 shares, which would increase the total number of Konecranes shares (including treasury shares and the shares owned by KCR Management Oy) to 64,646,320. The option programs include approximately 180 key persons. All shares carry one vote per share and equal rights to dividends. The terms and conditions of the stock option programs can be seen on Konecranes' website at www.konecranes.com. MARKET CAPITALIZATION AND TRADING VOLUME The closing price for Konecranes Plc's shares on December 31, 2009 was EUR 19.08. The volume-weighted average share price in 2009 was EUR 16.66, the highest price being EUR 22.04 in September and the lowest EUR 10.61 in January. In 2009, the trading volume totaled about 113 million Konecranes Plc shares, corresponding to a turnover of approximately EUR 1,883 million and a turnover rate of 193 percent of the total number of outstanding shares. The daily average trading volume was 451,273 shares, representing a daily average turnover of EUR 7.5 million. On December 31, 2009, the total market capitalization of Konecranes Plc's shares was EUR 1,180.5 million including the treasury shares held by the company, and the shares held by KCR Management Oy. The market capitalization was EUR 1,122.1 million excluding the treasury shares and the shares held by KCR Management Oy. FLAGGING NOTIFICATIONS On September 18, 2009, Ilmarinen Mutual Pension Insurance Company informed Konecranes that their holding in Konecranes had fallen below 5 percent. The total number of shares owned by Ilmarinen was 3,176,689 on September 18, 2009, or 4.92 percent of Konecranes' shares. On December 4, 2009 BlackRock, Inc. informed Konecranes that their holding in Konecranes had exceeded 5 percent. The total number of shares owned by BlackRock was 4,458,836 on December 4, 2009, or 7.21 percent of Konecranes' shares. No other disclosures of changes in holdings were received in 2009. RESEARCH AND DEVELOPMENT In 2009, Konecranes' research and product development expenditure totaled EUR 22.0 (19.0) million, representing 1.3 (0.9) percent of sales. R&D expenditure includes product development projects aimed at improving the quality and cost efficiency of both products and services. Konecranes introduced an industry shaping industrial crane, SMARTON. SMARTON can be used in industrial sectors such as steel handling and warehousing, automotive, general manufacturing, power, workshops, automatic storage systems and mining. Depending on the set up, SMARTON can lift loads ranging from 30 tons to more than 500 tons. The crane monitors its own condition and recommends when and what kinds of inspection or preventive maintenance should be performed. The crane can easily be updated with smart solutions. SMARTON is compact in size. This enables new industrial halls, for example, to be smaller than before. The feed-back of the braking energy, a standard feature in SMARTON, can reduce power consumption and energy costs by up to one third. The DynaPilot sway-control system, integrated into the crane's traveling inverter, is now available as a standard option for the whole range of Konecranes' lifting solutions. By modeling the load swing, the integrated electronic system is designed to prevent the load from swaying due to crane movements. Being able to operate at faster speeds and position loads more quickly also helps to improve productivity. The product development in Ports Business unit focused on equipment fleet utilization improvement, DriverAids automation upgrade features and reduction of environmental footprint. With Konecranes CHEMS-software, container terminal operators can monitor equipment fleet efficiency in real time and identify areas for operational improvement. DriverAids features include features like Container Positioning Information System, Auto-Steering, Auto-Stop, Auto-Move and further load handling functions. Environmental footprint reduction includes features for diesel powered yard equipment like FuelSaver, Hybrid and Emission Catalyst, as well as conversions to electric high voltage supply. Considerable efforts were made to develop service offering as well. Konecranes developed, patented and launched a new unique runway measurement and analysis method called the RailQ. With the RailQ method the customer receives a 3D model of his current runway condition. In addition to the 3D model the customer receives a thorough report of the analysis, pointing out the improvement needs and corrections needed to bring the runway back to accepted tolerances. Remote services were launched to support Konecranes advanced maintenance concept. By utilizing real time equipment usage data, we can optimize and predict maintenance needs and give needed expert support to our customers from three different remote centers, located in Shanghai, Springfield and Hyvinkää. The Crane Reliability Survey (CRS) service is designed to enhance safety, improve performance, and extend life span for all makes and models of overhead lifting equipment. The customized review process, in-depth analysis, and expertise of Konecranes' specialists all help customers to create robust maintenance plans, control ownership costs, and maximize return on investment over the equipment's entire life span. Konecranes put greater emphasis on industrial design during 2009 by setting up a dedicated team within the Product Development Unit. ENVIRONMENTAL ISSUES Particular attention in 2009 was paid to developing a global environmental network and sharing best practices across the Group. Defining key environmental indicators and developing environmental reporting were also prioritized. During 2009, the Group defined an environmental program for the next few years. The main points of the program include developing Eco-efficient systems and services, systematic environmental management, GRI reporting, and increasing internal and external information flows. The Group introduced new tools, such as web conferencing, and increased the use of phone and video meetings in internal communications in 2009. These are expected to cut work-related travel significantly and reduce the carbon footprint and other travel-related impacts on the environment. COST REDUCTION PROGRAMME Due to the sharp decline in demand in all business areas, Konecranes initiated a cost reduction program in 2009 with the aim of lowering the Group's cost base by EUR 100 million by 2010 from the 2008 level. The cost reduction program includes both procurement development actions and personnel reductions, but the savings target does not include potential general deflation in material costs. During the report period several measures were taken. During 2009, decisions were taken to reduce the number of employees by more than 1,600. The total number of personnel was reduced by almost 1,500 in 2009. Personnel reductions were achieved through rationalization and efficiency improvement measures across the company. As part of the program, the Group announced closures of the crane manufacturing sites in Ettlingen in Germany, Loughborough in the UK and Birmingham in the US, and decided to discontinue certain products. The closure of these sites will lead to a reduction of approximately 150 employees in 2010. The Group procurement development program is proceeding according to plan. A global category management has been established, and the consolidation of suppliers is lowering our costs. Based on the above-mentioned restructuring actions, Konecranes expects to achieve the targeted cost savings of EUR 100 million in 2010 compared with the cost base in 2008. Restructuring costs of EUR 20.9 million were booked in 2009, with EUR 5.1 million of this in the fourth quarter. RISKS AND UNCERTAINTIES The Group's principal short-term risks and uncertainties derive from a prolonged downturn in the world economy or other unforeseen events. A decrease in demand for Konecranes' products and services may have a continuing negative effect on the Group's sales volumes and pricing power, and thus result in decreasing profits, a possible impairment of goodwill and other assets, and inventory obsolescence. The shortage of credit may cause difficulties to Konecranes' customers, suppliers, and financial and other counterparties. The risk may be realized as a shortage of supplies or defaulting liabilities. The Group has paid special attention to securing customer payments and requiring strict terms for possible postponements by customers. Increased attention is also being paid to the financial status and business continuity of key subcontractors and vendors. As of now, no such major risks have materialized. In the case of a continued shortage of credit and a prolonged economic downturn, credit losses may increase. The continuing financial crisis may also lead to challenges in securing liquidity. Although Konecranes has not faced difficulties in financing its business operations, the Group aims to keep more cash in the balance sheet than normally. Konecranes is supported by its solid financial position and strong balance sheet in securing its liquidity. Challenges in financing may lead customers to postpone projects or even to cancel existing orders. Currently the financial stringency has mainly been visible in prolonged decision making times. As of now, no major cancellations have occurred and advance payments represent about one fourth of the order book. However, if longer postponements and potential cancellations of some major projects actually occur, this may deteriorate the quality of the order book and cause losses. Konecranes is paying increased attention to order book quality and is continuously monitoring the status of orders. Currency rate fluctuations 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. 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, auto liability and other matters involving claims of general liability. While the final outcome of these proceedings 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 unfavorable, would not have a material adverse impact on the financial condition of the Group. FUTURE PROSPECTS Despite a slight pick-up in industrial output in the second half of 2009, Konecranes expects the uncertainty to continue, with no credible signs of market recovery visible. The demand for maintenance services is expected to remain stable or to increase gradually should capacity utilization within customer industries continue to improve. The demand for new equipment is expected to remain generally on a low level, and to suffer from overcapacity at customers. Price competition is likely to remain. A high degree of fluctuation between quarters may continue due to the timing of orders. The year 2010 began with a thinner order book than the previous year. 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. BOARD OF DIRECTORS' PROPOSAL FOR DISPOSAL OF DISTRIBUTABLE FUNDS The parent company's non-restricted equity is EUR 186,390,616.64 of which the net income for the year is EUR 38,732,347.05. The Group's non-restricted equity is EUR 330,849,000. According to the Finnish Companies Act, the distributable funds of the company are calculated based on the parent company's non-restricted equity. For the purpose of determining the amount of the dividend the Board of Directors has assessed the solvency of the parent company and the economic circumstances subsequent to the financial year end. Based on such assessments the Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.90 be paid on each share and that the remaining non-restricted equity is retained in shareholders' equity. A pdf version of Konecranes' full audited financial statements including the report of the Board of Directors will be available on the web in week 8 and the printed version in week 9. Helsinki, February 4, 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 Konecranes' 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, 2009 Konecranes applied two new or amended standards: IFRS 8, Operating Segments and IAS 1, Presentation of Financial Statements - Revised. IFRS 8 replaces the IAS 14, Segment Reporting standard. In accordance with IFRS 8, the identification of operating segments is based on management reporting. The new standard did not change the present Segment reporting, because the Business Segments specified according to internal reporting are nowadays the Group's primary form of managerial reporting. The amendment to IAS 1 mainly affected to the presentation of the statement of income and the statement of changes in equity. Otherwise Konecranes applies the same accounting policies as were applied in the 2008 annual financial statements. The figures presented in the tables above have been rounded to one decimal, which should be taken into account when reading the sum figures. The numbers stated in this bulletin have been subject to audit. Consolidated statement of income -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | | | 2009 | 2008 | % | 2009 | 2008 | | -------------------------------------------------------------------------------- | Sales | 428.9 | 650.4 | -34.1 | 1,671.3 | 2,102.5 | -20.5 | -------------------------------------------------------------------------------- | Other operating | 1.1 | 4.0 | | 2.9 | 6.3 | | | income | | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -11.8 | -7.3 | | -32.5 | -26.6 | | | impairments | | | | | | | -------------------------------------------------------------------------------- | Other operating | -396.0 | -570.7 | | -1,543.8 | -1,833.5 | | | expenses | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 22.2 | 76.5 | -71.0 | 97.9 | 248.7 | -60.6 | -------------------------------------------------------------------------------- | Share of | -0.2 | -3.5 | | -2.2 | -3.9 | | | associates' and | | | | | | | | joint ventures' | | | | | | | | result | | | | | | | -------------------------------------------------------------------------------- | Financial income | -3.4 | 0.8 | | -7.1 | -8.6 | | | and expenses | | | | | | | -------------------------------------------------------------------------------- | Profit before | 18.6 | 73.8 | -74.8 | 88.6 | 236.2 | -62.5 | | taxes | | | | | | |-------------------------------------------------------------------------------- | Taxes | -5.2 | -23.8 | | -26.1 | -69.6 | | -------------------------------------------------------------------------------- | NET PROFIT FOR | 13.4 | 50.0 | -73.3 | 62.5 | 166.6 | -62.5 | | THE PERIOD | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit for | | | | | | | | the period | | | | | | | | attributable to: | | | | | | | -------------------------------------------------------------------------------- | Shareholders of | 13.7 | 49.9 | | 63.6 | 166.4 | | | the parent | | | | | | | | company | | | | | | | -------------------------------------------------------------------------------- | Minority | -0.4 | 0.1 | | -1.1 | 0.1 | | | interest | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | 0.23 | 0.85 | -72.6 | 1.08 | 2.83 | -61.9 | | share, basic | | | | | | | | (EUR) | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.23 | 0.85 | -72.5 | 1.08 | 2.82 | -61.8 | | share, diluted | | | | | | | | (EUR) | | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME -------------------------------------------------------------------------------- | EUR million | 10-12/ | 10-12/ | Change | 1-12/ | 1-12/ | Change | | | 2009 | 2008 | % | 2009 | 2008 | % | -------------------------------------------------------------------------------- | Net profit for the | 13.4 | 50.0 | -73.3 | 62.5 | 166.6 | -62.5 | | period | | | | | | | -------------------------------------------------------------------------------- | Other comprehensive | | | | | | | | income for the | | | | | | | | period, net of tax | | | | | | | -------------------------------------------------------------------------------- | Exchange differences | 3.1 | -4.6 | | -1.1 | -4.5 | | | on | | | | | | | | translating foreign | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | Cash flow hedges | -2.5 | -2.2 | | 1.9 | -3.3 | | -------------------------------------------------------------------------------- | Income tax relating | 0.7 | 0.6 | | -0.5 | 0.8 | | | to | | | | | | | | components of other | | | | | | | | comprehensive income | | | | | | | -------------------------------------------------------------------------------- | Other comprehensive | 1.2 | -6.2 | | 0.3 | -6.9 | | | income for the | | | | | | | | period, net of tax | | | | | | | -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE | 14.5 | 43.7 | -66.8 | 62.8 | 159.6 | -60.7 | | INCOME FOR THE | | | | | | | | PERIOD | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive | | | | | | | | income attributable | | | | | | | | to: | | | | | | | -------------------------------------------------------------------------------- | Shareholders of the | 14.9 | 43.7 | | 64.0 | 159.5 | | | parent company | | | | | | | -------------------------------------------------------------------------------- | Minority interest | -0.4 | 0.0 | | -1.2 | 0.1 | | -------------------------------------------------------------------------------- Consolidated balance sheet -------------------------------------------------------------------------------- | EUR million | | | -------------------------------------------------------------------------------- | ASSETS | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Goodwill | 71.5 | 57.8 | -------------------------------------------------------------------------------- | Intangible assets | 65.8 | 62.5 | -------------------------------------------------------------------------------- | Property, plant and equipment | 91.3 | 69.5 | -------------------------------------------------------------------------------- | Advance payments and construction in | 11.8 | 5.4 | | progress | | | -------------------------------------------------------------------------------- | Investments accounted for using the | 4.5 | 7.4 | | equity method | | | -------------------------------------------------------------------------------- | Available-for-sale investments | 1.8 | 1.9 | -------------------------------------------------------------------------------- | Long-term loans receivable | 2.7 | 1.8 | -------------------------------------------------------------------------------- | Deferred tax assets | 37.3 | 31.9 | -------------------------------------------------------------------------------- | Total non-current assets | 286.7 | 238.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Inventories | | | -------------------------------------------------------------------------------- | Raw material and semi- | 125.0 | 147.0 | | manufactured goods | | | -------------------------------------------------------------------------------- | Work in progress | 114.3 | 168.4 | -------------------------------------------------------------------------------- | Advance payments | 8.9 | 17.8 | -------------------------------------------------------------------------------- | Total inventories | 248.2 | 333.2 | -------------------------------------------------------------------------------- | Accounts receivable | 265.4 | 398.3 | -------------------------------------------------------------------------------- | Loans receivable | 2.9 | 0.4 | -------------------------------------------------------------------------------- | Other receivables | 23.5 | 40.8 | -------------------------------------------------------------------------------- | Deferred assets | 96.1 | 93.6 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 137.5 | 100.9 | -------------------------------------------------------------------------------- | Total current assets | 773.7 | 967.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL ASSETS | 1,060.4 | 1,205.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR million | | | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | Equity attributable to equity holders of | | | | the parent company | | | -------------------------------------------------------------------------------- | Share capital | 30.1 | 30.1 | -------------------------------------------------------------------------------- | Share premium account | 39.3 | 39.3 | -------------------------------------------------------------------------------- | Share issue | 0.0 | 0.1 | -------------------------------------------------------------------------------- | Fair value reserves | 2.3 | 0.9 | -------------------------------------------------------------------------------- | Translation difference | -18.4 | -17.4 | -------------------------------------------------------------------------------- | Paid in capital | 9.0 | 7.3 | -------------------------------------------------------------------------------- | Retained earnings | 276.6 | 172.1 | -------------------------------------------------------------------------------- | Net profit for the period | 63.6 | 166.4 | -------------------------------------------------------------------------------- | Total equity attributable to equity | 402.5 | 398.8 | | holders of the parent company | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Minority interest | 4.6 | 1.9 | -------------------------------------------------------------------------------- | Total equity | 407.1 | 400.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 38.6 | 102.8 | -------------------------------------------------------------------------------- | Other long-term liabilities | 56.1 | 56.3 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 18.6 | 18.4 | -------------------------------------------------------------------------------- | Total non-current liabilities | 113.3 | 177.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Provisions | 61.1 | 46.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 26.9 | 11.6 | -------------------------------------------------------------------------------- | Advance payments received | 156.7 | 201.1 | -------------------------------------------------------------------------------- | Progress billings | 18.9 | 4.0 | -------------------------------------------------------------------------------- | Accounts payable | 83.7 | 135.2 | -------------------------------------------------------------------------------- | Other short-term liabilities | 13.8 | 23.6 | | (non-interest bearing) | | | -------------------------------------------------------------------------------- | Accruals | 178.7 | 204.9 | -------------------------------------------------------------------------------- | Total current liabilities | 478.9 | 580.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 653.3 | 804.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL EQUITY AND LIABILITIES | 1,060.4 | 1,205.4 | -------------------------------------------------------------------------------- Consolidated statement of changes in equity -------------------------------------------------------------------------------- | | Equity attributable to equity holders of the parent | | | company | -------------------------------------------------------------------------------- | EUR million | Share | Share | Share | Cash flow | Translation | | | capital | premium | issue | hedge | difference | | | | account | | | | -------------------------------------------------------------------------------- | Balance at | 30.1 | 39.3 | 0.1 | 0.9 | -17.4 | | 1 January, 2009 | | | | | | -------------------------------------------------------------------------------- | Option exercised | | | | | | -------------------------------------------------------------------------------- | Share issue | | | -0.1 | | | -------------------------------------------------------------------------------- | Dividends paid to | | | | | | | equity holders | | | | | | -------------------------------------------------------------------------------- | Dividends paid to | | | | | | | minority interest | | | | | | -------------------------------------------------------------------------------- | Share based | | | | | | | payments recognized | | | | | | | against equity | | | | | | -------------------------------------------------------------------------------- | Purchase of | | | | | | | treasury shares | | | | | | -------------------------------------------------------------------------------- | Employee benefit | | | | | | | scheme for | | | | | | | executive | | | | | | | management* | | | | | | -------------------------------------------------------------------------------- | Change of control | | | | | | | in associated | | | | | | | company** | | | | | | -------------------------------------------------------------------------------- | Business | | | | | | | combinations | | | | | | -------------------------------------------------------------------------------- | Total comprehensive | | | | 1.4 | -1.1 | | income | | | | | | -------------------------------------------------------------------------------- | Balance at | 30.1 | 39.3 | 0.0 | 2.3 | -18.4 | | 31 December, 2009 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 30.1 | 39.3 | 0.0 | 3.3 | -12.9 | | 1 January, 2008 | | | | | | -------------------------------------------------------------------------------- | Option exercised | | | | | | -------------------------------------------------------------------------------- | Share issue | | | 0.1 | | | -------------------------------------------------------------------------------- | Dividends paid to | | | | | | | equity holders | | | | | | -------------------------------------------------------------------------------- | Dividends paid to | | | | | | | minority interest | | | | | | -------------------------------------------------------------------------------- | Share based | | | | | | | payments recognized | | | | | | | against equity | | | | | | -------------------------------------------------------------------------------- | Purchase of | | | | | | | treasury shares | | | | | | -------------------------------------------------------------------------------- | Business | | | | | | | combinations | | | | | | -------------------------------------------------------------------------------- | Total comprehensive | | | | -2.4 | -4.5 | | income | | | | | | -------------------------------------------------------------------------------- | Balance at | 30.1 | 39.3 | 0.1 | 0.9 | -17.4 | | 31 December, 2008 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Equity attributable to | | || | equity holders of the parent | | | | | company | | | -------------------------------------------------------------------------------- | EUR million | Paid in | Retained | Total | Minority | Total | | | capital | earnings | | interest | equity | -------------------------------------------------------------------------------- | Balance at | 7.3 | 338.5 | 398.8 | 1.9 | 400.7 | | 1 January, 2009 | | | | | | -------------------------------------------------------------------------------- | Option exercised | 1.8 | | 1.8 | | 1.8 | -------------------------------------------------------------------------------- | Share issue | | | -0.1 | | -0.1 | -------------------------------------------------------------------------------- | Dividends paid to | | -53.3 | -53.3 | | -53.3 | | equity holders | | | | | | -------------------------------------------------------------------------------- | Dividends paid to | | | 0.0 | | 0.0 | | minority interest | | | | | | -------------------------------------------------------------------------------- | Share based | | 3.5 | 3.5 | | 3.5 | | payments recognized | | | | | | | against equity | | | | | | -------------------------------------------------------------------------------- | Purchase of | | | 0.0 | | 0.0 | | treasury shares | | | | | | -------------------------------------------------------------------------------- | Employee benefit | | -8.4 | -8.4 | 1.3 | -7.1 | | scheme for | | | | | | | executive | | | | | | | management* | | | | | | -------------------------------------------------------------------------------- | Change of control | | -3.7 | -3.7 | | -3.7 | | in associated | | | | | | | company** | | | | | | -------------------------------------------------------------------------------- | Business | | | 0.0 | 2.6 | 2.6 | | combinations | | | | | | -------------------------------------------------------------------------------- | Total comprehensive | | 63.6 | 64.0 | -1.2 | 62.8 | | income | | | | | | -------------------------------------------------------------------------------- | Balance at | 9.0 | 340.2 | 402.5 | 4.6 | 407.1 | | 31 December, 2009 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance at | 4.7 | 216.2 | 280.7 | 0.1 | 280.8 | | 1 January, 2008 | | | | | | -------------------------------------------------------------------------------- | Option exercised | 4.1 | | 4.1 | | 4.1 | -------------------------------------------------------------------------------- | Share issue | | | 0.1 | | 0.1 | -------------------------------------------------------------------------------- | Dividends paid to | | -46.8 | -46.8 | | -46.8 | | equity holders | | | | | | -------------------------------------------------------------------------------- | Dividends paid to | | | 0.0 | -0.1 | -0.1 | | minority interest | | | | | | -------------------------------------------------------------------------------- | Share based | | 2.7 | 2.7 | | 2.7 | | payments recognized | | | | | | | against equity | | | | | | -------------------------------------------------------------------------------- | Purchase of | -1.6 | | -1.6 | | -1.6 | | treasury shares | | | | | | -------------------------------------------------------------------------------- | Business | | | 0.0 | 1.8 | 1.8 | | combinations | | | | | | -------------------------------------------------------------------------------- | Total comprehensive | | 166.4 | 159.5 | 0.1 | 159.6 | | income | | | | | | -------------------------------------------------------------------------------- | Balance at | 7.3 | 338.5 | 398.8 | 1.9 | 400.7 | | 31 December, 2008 | | | | | | -------------------------------------------------------------------------------- * Incentive arrangement for Konecranes Group executive management (KCR Management Oy) ** Increase of Konecranes' influence in the management of associated company ZAO Zaporozhje Kran in Ukraine. Consolidated cash flow statement -------------------------------------------------------------------------------- | EUR million | 1-12/2009 | 1-12/2008 | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | -------------------------------------------------------------------------------- | Net income | 62.5 | 166.6 | -------------------------------------------------------------------------------- | Adjustments to net income | | | -------------------------------------------------------------------------------- | Taxes | 26.1 | 69.6 | -------------------------------------------------------------------------------- | Financial income and expenses | 7.5 | 8.9 | -------------------------------------------------------------------------------- | Share of associates' and joint | 2.2 | 3.9 | | ventures' result | | | -------------------------------------------------------------------------------- | Dividend income | -0.4 | -0.3 | -------------------------------------------------------------------------------- | Depreciation and impairments | 32.5 | 26.6 | -------------------------------------------------------------------------------- | Profits and losses on sale of | 0.6 | -0.6 | | fixed assets | | | -------------------------------------------------------------------------------- | Other adjustments | 1.8 | 0.4 | -------------------------------------------------------------------------------- | Operating income before change in net | 132.9 | 275.1 | | working capital | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in interest-free short-term | 171.8 | -92.1 | | receivables | | | -------------------------------------------------------------------------------- | Change in inventories | 94.9 | -77.3 | -------------------------------------------------------------------------------- | Change in interest-free short-term | -111.9 | 77.9 | | liabilities | | | -------------------------------------------------------------------------------- | Change in net working capital | 154.8 | -91.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from operations before | 287.7 | 183.7 | | financing items and taxes | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest received | 1.2 | 2.8 | -------------------------------------------------------------------------------- | Interest paid | -4.6 | -8.3 | -------------------------------------------------------------------------------- | Other financial income and expenses | -1.6 | -0.6 | -------------------------------------------------------------------------------- | Income taxes paid | -59.6 | -70.5 | -------------------------------------------------------------------------------- | Financing items and taxes | -64.6 | -76.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net cash from operating activities | 223.0 | 107.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investing activities | | | -------------------------------------------------------------------------------- | Acquisition of Group companies, | -12.3 | -12.3 | | net of cash | | | -------------------------------------------------------------------------------- | Divestment of Group companies, | -0.4 | 0.4 | | net of cash | | | -------------------------------------------------------------------------------- | Acquisition of shares in associated | 0.0 | -3.0 | | companies | | | -------------------------------------------------------------------------------- | Investments in other shares | -0.2 | -0.5 | -------------------------------------------------------------------------------- | Capital expenditures | -29.7 | -22.8 | -------------------------------------------------------------------------------- | Proceeds from sale of fixed assets | 0.9 | 1.0 | -------------------------------------------------------------------------------- | Dividends received | 0.4 | 0.3 | -------------------------------------------------------------------------------- | Net cash used in investing activities | -41.2 | -36.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow before financing activities | 181.8 | 70.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing activities | | | -------------------------------------------------------------------------------- | Proceeds from options exercised and | 1.7 | 4.3 | | share issues | | | -------------------------------------------------------------------------------- | Purchase of treasury shares | 0.0 | -2.5 | -------------------------------------------------------------------------------- | Related Party net investment to | -7.1 | 0.0 | | Konecranes Plc shares | | | -------------------------------------------------------------------------------- | Proceeds from long-term borrowings | 132.6 | 105.7 | -------------------------------------------------------------------------------- | Repayments of long-term borrowings | -207.2 | -52.9 | -------------------------------------------------------------------------------- | Proceeds from (+), payments of (-) | -8.4 | -29.7 | | short-term borrowings | | | -------------------------------------------------------------------------------- | Change in long-term receivables | -0.9 | -0.2 | -------------------------------------------------------------------------------- | Change in short-term receivables | -2.6 | -0.2 | -------------------------------------------------------------------------------- | Dividends paid to equity holders of the | -53.3 | -46.8 | | parent | | | -------------------------------------------------------------------------------- | Dividends paid to minority interest | 0.0 | -0.1 | -------------------------------------------------------------------------------- | Net cash used in financing activities | -145.2 | -22.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Translation differences in cash | 0.0 | -2.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change of cash and cash equivalents | 36.6 | 45.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents at beginning | 100.9 | 56.0 | | of period | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at end of | 137.5 | 100.9 | | period | | | -------------------------------------------------------------------------------- | Change of cash and cash equivalents | 36.6 | 45.0 | -------------------------------------------------------------------------------- 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 by | 1-12/2009 | % of | 1-12/2008 | % of | | Business Area | | total | | total | -------------------------------------------------------------------------------- | Service 1) | 498.4 | 35 | 658.2 | 30 | -------------------------------------------------------------------------------- | Standard Lifting | 517.0 | 36 | 859.0 | 39 | -------------------------------------------------------------------------------- | Heavy Lifting | 425.1 | 30 | 686.0 | 31 | -------------------------------------------------------------------------------- | ./. Internal | -91.7 | | -136.1 | | -------------------------------------------------------------------------------- | Total | 1 348.9 | 100 | 2 067.1 | 100 | -------------------------------------------------------------------------------- | 1) Excl. Service Contract | | | | | | Base | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 31.12.2009 | % of | 31.12.2008 | % of | | | | total | | total | -------------------------------------------------------------------------------- | Order book total 2) | | | | | -------------------------------------------------------------------------------- | Service | 75.9 | 12 | 117.3 | 14 | -------------------------------------------------------------------------------- | Standard Lifting | 192.1 | 31 | 327.9 | 38 | -------------------------------------------------------------------------------- | Heavy Lifting | 353.8 | 57 | 420.2 | 49 | -------------------------------------------------------------------------------- | ./. Internal | -14.8 | | -29.1 | | -------------------------------------------------------------------------------- | Total | 607.0 | 100 | 836.3 | 100 | -------------------------------------------------------------------------------- | 2) Percentage of | | | | | | completion deducted | | | | | -------------------------------------------------------------------------------- | Sales by Business Area | 1-12/2009 | % of | 1-12/2008 | % of | | | | total | | total | -------------------------------------------------------------------------------- | Service | 667.2 | 37 | 754.3 | 34 | -------------------------------------------------------------------------------- | Standard Lifting | 652.2 | 36 | 835.4 | 37 | -------------------------------------------------------------------------------- | Heavy Lifting | 479.1 | 27 | 659.4 | 29 | -------------------------------------------------------------------------------- | ./. Internal | -127.3 | | -146.6 | | -------------------------------------------------------------------------------- | Total | 1,671.3 | 100 | 2,102.5 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit (EBIT) | 1-12/2009 | EBIT % | 1-12/2008 | EBIT % | | by Business Area | MEUR | | MEUR | | | excluding restructuring | | | | | | costs | | | | | -------------------------------------------------------------------------------- | Service | 73.5 | 11.0 | 106.2 | 14.1 | -------------------------------------------------------------------------------- | Standard Lifting | 65.3 | 10.0 | 140.0 | 16.8 | -------------------------------------------------------------------------------- | Heavy Lifting | 36.7 | 7.7 | 53.6 | 8.1 | -------------------------------------------------------------------------------- | Group costs | -54.6 | | -47.2 | | -------------------------------------------------------------------------------- | Consolidation items | -1.9 | | -3.9 | | -------------------------------------------------------------------------------- | Total | 118.8 | 7.1 | 248.7 | 11.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit (EBIT) | 1-12/2009 | EBIT % | 1-12/2008 | EBIT % | | by Business Area | MEUR | | MEUR | | | including restructuring | | | | | | costs | | | | | -------------------------------------------------------------------------------- | Service | 70.8 | 10.6 | 106.2 | 14.1 | -------------------------------------------------------------------------------- | Standard Lifting | 49.7 | 7.6 | 140.0 | 16.8 | -------------------------------------------------------------------------------- | Heavy Lifting | 34.0 | 7.1 | 53.6 | 8.1 | -------------------------------------------------------------------------------- | Group costs | -54.6 | | -47.2 | | -------------------------------------------------------------------------------- | Consolidation items | -1.9 | | -3.9 | | -------------------------------------------------------------------------------- | Total | 97.9 | 5.9 | 248.7 | 11.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel by Business | 31.12.2009 | % of | 31.12.2008 | % of | | Area | | total | | total | | (at the end of the | | | | | | period) | | | | | -------------------------------------------------------------------------------- | Service | 4 891 | 50 | 5 372 | 54 | -------------------------------------------------------------------------------- | Standard Lifting | 3 012 | 31 | 2 808 | 28 | -------------------------------------------------------------------------------- | Heavy Lifting | 1 603 | 16 | 1 439 | 15 | -------------------------------------------------------------------------------- | Group staff | 276 | 3 | 285 | 3 | -------------------------------------------------------------------------------- | Total | 9,782 | 100 | 9,904 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. GEOGRAPHICAL SEGMENTS | | | | | -------------------------------------------------------------------------------- | EUR million | | | | | -------------------------------------------------------------------------------- | Sales by market | 1-12/2009 | % of | 1-12/2008 | % of | | | | total | | total | -------------------------------------------------------------------------------- | Europe-Middle East-Africa | 928.0 | 56 | 1 207.5 | 57 | | (EMEA) | | | | | -------------------------------------------------------------------------------- | Americas (AME) | 479.5 | 29 | 591.7 | 28 | -------------------------------------------------------------------------------- | Asia-Pacific (APAC) | 263.8 | 16 | 303.3 | 14 | -------------------------------------------------------------------------------- | Total | 1,671.3 | 100 | 2,102.5 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel by region | 31.12.2009 | % of | 31.12.2008 | % of | | (at the end of the | | total | | total | | period) | | | | | -------------------------------------------------------------------------------- | Europe-Middle East-Africa | 5,533 | 57 | 5,658 | 57 | | (EMEA) | | | | | -------------------------------------------------------------------------------- | Americas (AME) | 2,236 | 23 | 2,619 | 26 | -------------------------------------------------------------------------------- | Asia-Pacific (APAC) | 2,013 | 21 | 1,627 | 16 | -------------------------------------------------------------------------------- | Total | 9,782 | 100 | 9,904 | 100 | -------------------------------------------------------------------------------- Notes -------------------------------------------------------------------------------- | KEY FIGURES | 31.12.2009 | 31.12.2008 | Change % | -------------------------------------------------------------------------------- | Earnings per share, basic (EUR) | 1.08 | 2.83 | -61.9 | -------------------------------------------------------------------------------- | Earnings per share, diluted | 1.08 | 2.82 | -61.8 | | (EUR) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on capital employed %, | 19.3 | 56.3 | -65.7 | | Rolling 12 Months (R12M) | | | | -------------------------------------------------------------------------------- | Return on equity %, Rolling 12 | 15.5 | 48.9 | -68.3 | | Months (R12M) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity per share (EUR) | 6.84 | 6.75 | 1.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current ratio | 1.4 | 1.5 | -6.7 | -------------------------------------------------------------------------------- | Gearing % | -19.1 | 2.8 | -782.1 | -------------------------------------------------------------------------------- | Solidity % | 45.1 | 39.9 | 13.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBITDA, EUR million | 130.4 | 275.3 | -52.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments total (excl. | 25.7 | 22.3 | 15.3 | | acquisitions), EUR million | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest-bearing net debt, EUR | -77.7 | 11.3 | -785.6 | | million | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net working capital, EUR million | 138.8 | 263.8 | -47.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of personnel | 9 811 | 9 222 | 6.4 | | during the period | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of shares | 58,922,323 | 58,725,782 | 0.3 | | outstanding, basic | | | | -------------------------------------------------------------------------------- | Average number of shares | 59,085,936 | 58,986,740 | 0.2 | | outstanding, diluted | | | | -------------------------------------------------------------------------------- | Number of shares outstanding | 58,812,624 | 59,069,720 | -0.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The period end exchange rates: | 31.12.2009 | 31.12.2008 | Change % | -------------------------------------------------------------------------------- | USD - US dollar | 1.441 | 1.392 | -3.4 | -------------------------------------------------------------------------------- | CAD - Canadian dollar | 1.513 | 1.700 | 12.4 | -------------------------------------------------------------------------------- | GBP - Pound sterling | 0.888 | 0.953 | 7.3 | -------------------------------------------------------------------------------- | CNY - Chinese yuan | 9.835 | 9.496 | -3.5 | -------------------------------------------------------------------------------- | SGD - Singapore dollar | 2.019 | 2.004 | -0.8 | -------------------------------------------------------------------------------- | SEK - Swedish krona | 10.252 | 10.870 | 6.0 | -------------------------------------------------------------------------------- | NOK - Norwegian krone | 8.300 | 9.750 | 17.5 | -------------------------------------------------------------------------------- | AUD - Australian dollar | 1.601 | 2.027 | 26.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The period average exchange | 31.12.2009 | 31.12.2008 | Change % | | rates: | | | | -------------------------------------------------------------------------------- | USD - US dollar | 1.395 | 1.471 | 5.4 | -------------------------------------------------------------------------------- | CAD - Canadian dollar | 1.585 | 1.559 | -1.7 | -------------------------------------------------------------------------------- | GBP - Pound sterling | 0.891 | 0.796 | -10.7 | -------------------------------------------------------------------------------- | CNY - Chinese yuan | 9.529 | 10.225 | 7.3 | -------------------------------------------------------------------------------- | SGD - Singapore dollar | 2.024 | 2.076 | 2.6 | -------------------------------------------------------------------------------- | SEK - Swedish krona | 10.618 | 9.610 | -9.5 | -------------------------------------------------------------------------------- | NOK - Norwegian krone | 8.726 | 8.218 | -5.8 | -------------------------------------------------------------------------------- | AUD - Australian dollar | 1.773 | 1.741 | -1.8 | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES AND PLEDGED ASSETS -------------------------------------------------------------------------------- | EUR million | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- | For own commercial obligations | | | -------------------------------------------------------------------------------- | Pledged assets | 0.0 | 0.2 | -------------------------------------------------------------------------------- | Guarantees | 212.0 | 159.0 | -------------------------------------------------------------------------------- | For associated companies | | | -------------------------------------------------------------------------------- | Guarantees | 0.0 | 13.0 | -------------------------------------------------------------------------------- | Leasing liabilities | | | -------------------------------------------------------------------------------- | Next year | 27.7 | 29.7 | -------------------------------------------------------------------------------- | Later on | 71.3 | 66.0 | -------------------------------------------------------------------------------- | Other | 0.2 | 0.2 | -------------------------------------------------------------------------------- | Total | 311.1 | 268.2 | -------------------------------------------------------------------------------- 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 unfavorable, would not have a material, adverse impact on the financial condition of the Group. NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS -------------------------------------------------------------------------------- | EUR million | 31.12.2009 | 31.12.2009 | 31.12.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | | Nominal | Fair value | Nominal | Fair value | | | value | | value | | -------------------------------------------------------------------------------- | Foreign exchange | 129.5 | 2.6 | 165.9 | 5.7 | | forward contracts | | | | | -------------------------------------------------------------------------------- | Electricity | 2.1 | -0.2 | 1.8 | -0.4 | | derivatives | | | | | -------------------------------------------------------------------------------- | Total | 131.6 | 2.5 | 167.7 | 5.3 | -------------------------------------------------------------------------------- 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 Heavy Lifting projects. ACQUISITIONS During January-December, Konecranes made ten acquisitions, and sold one minor operation in Austria. In July 2009, Konecranes entered to new business segment by making two acquisitions for load-handling solutions with aluminum rail systems and manipulators. Konecranes increased its ownership in the Austrian Konecranes Lifting Systems GmbH (former ACS Technologies GmbH) from 49.9% to 80% and at the same time acquired the assets of the German company Knight Europe GmbH & Co. KG. The two acquired companies' combined net sales were in 2008 approximately EUR 15 million and they employ about 100 people. During the last quarter in 2009 Konecranes finalized the acquisition of a majority holding (65%) in Jiangsu Three Horses Crane Manufacture Co. Ltd. (SANMA) based in Jingjiang, China. The company is a nationwide supplier of wire rope hoists in China and a crane supplier in Jiangsu and the neighboring provinces. The letter of intent was signed and published in November 2008 and the contract was signed in April 2009. The company's net sales were approximately EUR 18 million in 2008 and it has more than 500 employees. During 2009 Konecranes acquired also the remaining 80,5% of the share capital in the leading crane and service company Dynamic Cranes Systems Ltd in South Africa. DCS had annual net sales of approximately EUR 8 million in 2008 and about 70 employees. Four of the acquisitions related to the machine tool service (MTS) business in Scandinavia and USA, of which the biggest was the company Machine Tool Solutions Unlimited in Cincinnati, Ohio. The annual net sales of the company in 2008 were approximately EUR 3.5 million and the company has 18 employees. The preliminary fair values of the identifiable assets and liabilities of the acquired businesses at date of acquisitions are summarized below. -------------------------------------------------------------------------------- | EUR million | 31.12.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | | Recognized on | Carrying value | | | acquisition | | -------------------------------------------------------------------------------- | Intangible assets | 14.1 | 1.9 | -------------------------------------------------------------------------------- | Tangible assets | 10.6 | 10.6 | -------------------------------------------------------------------------------- | Deferred tax assets | 0.9 | 0.9 | -------------------------------------------------------------------------------- | Inventories | 7.3 | 5.9 | -------------------------------------------------------------------------------- | Account receivables and other assets | 15.0 | 11.6 | -------------------------------------------------------------------------------- | Cash and bank | 3.7 | 3.7 | -------------------------------------------------------------------------------- | Total assets | 51.6 | 34.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deferred tax liabilities | 2.2 | 0.7 | -------------------------------------------------------------------------------- | Long- and short-term interest bearing | 15.5 | 15.5 | | debts | | | -------------------------------------------------------------------------------- | Account payables | 8.2 | 8.2 | -------------------------------------------------------------------------------- | Other liabilities | 7.2 | 7.2 | -------------------------------------------------------------------------------- | Minority interest | 5.0 | 2.7 | -------------------------------------------------------------------------------- | Total liabilities | 38.2 | 34.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net assets | 13.4 | 0.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Acquisition costs | 30.1 | | -------------------------------------------------------------------------------- | Goodwill | 16.7 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash outflow on acquisition | | | -------------------------------------------------------------------------------- | Acquisition costs | 30.1 | | -------------------------------------------------------------------------------- | Cash flow of earlier interests in | -3.8 | | | acquired businesses | | | -------------------------------------------------------------------------------- | Liabilities assumed | -10.4 | | -------------------------------------------------------------------------------- | Acquisition costs paid in cash | 15.9 | | -------------------------------------------------------------------------------- | Cash and cash equivalents of acquired | -3.7 | | | companies | | | -------------------------------------------------------------------------------- | Net cash flow arising on acquisition | 12.2 | | -------------------------------------------------------------------------------- Divestments During the second quarter 2009 Konecranes sold its small Austrian subsidiary STAHL CraneSystems Ges.m.b.H. Quarterly figures CONSOLIDATED STATEMENT OF INCOME, QUARTERLY -------------------------------------------------------------------------------- | EUR | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | million | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | Sales | 428.9 | 368.7 | 431.6 | 442.1 | 650.4 | 520.4 | 492.4 | 439.2 | -------------------------------------------------------------------------------- | Other | 1.1 | 0.4 | 0.8 | 0.7 | 4.0 | 0.5 | 1.3 | 0.6 | | operati | | | | | | | | | | ng | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | Depre-c | -11.8 | -7.4 | -6.5 | -6.8 | -7.3 | -6.7 | -6.5 | -6.2 | | iation | | | | | | | | | | and | | | | | | | | | | impair- | | | | | | | | | | ments | | | | | | | | | -------------------------------------------------------------------------------- | Restruc | -5.1 | -13.9 | -1.9 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | -turing | | | | | | | | | | costs | | | | | | | | | -------------------------------------------------------------------------------- | Other | -390. | -337. | -395. | -399.2 | -570.7 | -445.3 | -428.9 | -388.7 | | operati | 9 | 7 | 1 | | | | | | | ng | | | | | | | | | | expense | | | | | | | | | | s | | | | | | | | | -------------------------------------------------------------------------------- | Operati | 22.2 | 10.2 | 28.8 | 36.8 | 76.5 | 69.0 | 58.3 | 45.0 | | ng | | | | | | | | | | profit | | | | | | | | | -------------------------------------------------------------------------------- | Share | -0.2 | -0.7 | -1.4 | 0.0 | -3.5 | -0.8 | 0.2 | 0.2 | | of | | | | | | | | | | asso-ci | | | | | | | | | | ates' | | | | | | | | | | and | | | | | | | | | | joint | | | | | | | | | | venture | | | | | | | | | | s' | | | | | | | | | | result | | | | | | | | | -------------------------------------------------------------------------------- | Financi | -3.4 | -2.3 | 0.0 | -1.5 | 0.8 | -4.6 | -5.9 | 1.1 | | al | | | | | | | | | | income | | | | | | | | | | and | | | | | | | | | | expense | | | | | | | | | | s | | | | | | | | | -------------------------------------------------------------------------------- | Profit | 18.6 | 7.2 | 27.4 | 35.4 | 73.8 | 63.5 | 52.6 | 46.3 | | before | | | | | | | | | | taxes | | | | | | | | | -------------------------------------------------------------------------------- | Taxes | -5.2 | -3.0 | -7.8 | -10.1 | -23.8 | -18.1 | -14.7 | -13.0 | -------------------------------------------------------------------------------- | Net | 13.4 | 4.2 | 19.6 | 25.3 | 50.0 | 45.4 | 37.9 | 33.3 | | profit | | | | | | | | | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET, QUARTERLY -------------------------------------------------------------------------------- | EUR | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | million | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | ASSETS | | | | | | | | | -------------------------------------------------------------------------------- | Goodwil | 71.5 | 64.4 | 59.5 | 58.4 | 57.8 | 59.8 | 59.1 | 56.4 | | l | | | | | | | | | -------------------------------------------------------------------------------- | In-tang | 65.8 | 60.5 | 61.1 | 61.3 | 62.5 | 63.5 | 63.8 | 60.8 | | ible | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- | Propert | 91.3 | 76.6 | 75.5 | 72.7 | 69.5 | 66.3 | 63.4 | 60.6 | | y, | | | | | | | | | | plant | | | | | | | | | | and | | | | | | | | | | equipme | | | | | | | | | | nt | | | | | | | | | -------------------------------------------------------------------------------- | Other | 58.1 | 54.8 | 56.5 | 48.8 | 48.5 | 42.9 | 38.6 | 36.6 | -------------------------------------------------------------------------------- | Total | 286.7 | 256.3 | 252.7 | 241.2 | 238.3 | 232.4 | 224.8 | 214.4 | | non-cur | | | | | | | | | | rent | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Invento | 248.2 | 303.0 | 322.6 | 356.7 | 333.2 | 359.6 | 323.5 | 274.6 | | r-ies | | | | | | | | | -------------------------------------------------------------------------------- | Receiva | 387.9 | 400.5 | 441.3 | 468.3 | 533.0 | 512.7 | 488.6 | 458.7 | | bles | | | | | | | | | | and | | | | | | | | | | other | | | | | | | | | | current | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- | Cash | 137.5 | 88.5 | 96.9 | 116.0 | 100.9 | 75.1 | 77.3 | 59.7 | | and | | | | | | | | | | cash | | | | | | | | | | equi-va | | | | | | | | | | lents | | | | | | | | | -------------------------------------------------------------------------------- | Total | 773.7 | 792.1 | 860.7 | 941.0 | 967.1 | 947.4 | 889.4 | 793.0 | | current | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | 1060. | 1048. | 1113. | 1182.2 | 1205.4 | 1179.8 | 1114.2 | 1007.4 | | assets | 4 | 4 | 4 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND | | | | | | | | | LIABILITIES | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | 407.1 | 389.1 | 385.4 | 379.7 | 400.7 | 354.6 | 302.0 | 261.6 | | equity | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-cur | 113.3 | 93.5 | 109.3 | 180.4 | 177.6 | 109.5 | 134.1 | 123.9 | | rent | | | | | | | | | | lia-bil | | | | | | | | | | ities | | | | | | | | | -------------------------------------------------------------------------------- | Provi.- | 61.1 | 54.9 | 42.9 | 46.9 | 46.8 | 41.8 | 38.8 | 35.9 | | sions | | | | | | | | | -------------------------------------------------------------------------------- | Advance | 156.7 | 157.3 | 175.2 | 197.1 | 201.1 | 245.8 | 219.3 | 192.9 | | payment | | | | | | | | | | s | | | | | | | | | | receive | | | | | | | | | | d | | | | | | | | | -------------------------------------------------------------------------------- | Other | 322.2 | 353.6 | 400.6 | 378.2 | 379.3 | 428.1 | 420.0 | 393.1 | | current | | | | | | | | | | liabili | | | | | | | | | | -ties | | | | | | | | | -------------------------------------------------------------------------------- | Total | 653.3 | 659.3 | 728.0 | 802.6 | 804.7 | 825.2 | 812.2 | 745.8 | | liabili | | | | | | | | | | -ties | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | 1060. | 1048. | 1113. | 1182.2 | 1205.4 | 1179.8 | 1114.2 | 1007.4 | | equity | 4 | 4 | 4 | | | | | | | and | | | | | | | | | | liabili | | | | | | | | | | -ties | | | | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT - QUARTERLY -------------------------------------------------------------------------------- | EUR | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | million | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | Operatin | 36.4 | 17.2 | 35.4 | 43.9 | 83.2 | 76.0 | 64.9 | 51.1 | | g income | | | | | | | | | | before | | | | | | | | | | change | | | | | | | | | | in net | | | | | | | | | | working | | | | | | | | | | capital | | | | | | | | | -------------------------------------------------------------------------------- | Change | 64.4 | 57.4 | 23.6 | 9.5 | -30.5 | -2.0 | -29.9 | -29.0 | | in net | | | | | | | | | | working | | | | | | | | | | capital | | | | | | | | | -------------------------------------------------------------------------------- | Financin | -10. | -8.4 | -24.6 | -20.8 | -19.1 | -22.5 | -20.9 | -14.1 | | g items | 8 | | | | | | | | | and | | | | | | | | | | taxes | | | | | | | | | -------------------------------------------------------------------------------- | Net cash | 89.9 | 66.2 | 34.4 | 32.6 | 33.5 | 51.4 | 14.1 | 8.0 || from | | | | | | | | | | operatin | | | | | | | | | | g | | | | | | | | | | activi-t | | | | | | | | | | ies | | | | | | | | | -------------------------------------------------------------------------------- | Cash | -18. | -9.2 | -8.7 | -5.0 | -9.2 | -9.7 | -14.5 | -3.6 | | flow | 4 | | | | | | | | | from | | | | | | | | | | investin | | | | | | | | | | g | | | | | | | | | | activi-t | | | | | | | | | | ies | | | | | | | | | -------------------------------------------------------------------------------- | Cash | 71.5 | 57.0 | 25.7 | 27.6 | 24.3 | 41.8 | -0.4 | 4.4 | | flow | | | | | | | | | | before | | | | | | | | | | financin | | | | | | | | | | g | | | | | | | | | | activi-t | | | | | | | | | | ies | | | | | | | | | -------------------------------------------------------------------------------- | Proceeds | 0.2 | 0.2 | 0.6 | 0.7 | 1.3 | 0.4 | 2.2 | 0.4 | | from | | | | | | | | | | options | | | | | | | | | | exercise | | | | | | | | | | d and | | | | | | | | | | share | | | | | | | | | | issues | | | | | | | | | -------------------------------------------------------------------------------- | Purchase | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -2.5 | | of | | | | | | | | | | treasury | | | | | | | | | | shares | | | | | | | | | -------------------------------------------------------------------------------- | Related | 0.0 | 0.0 | -7.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | Party | | | | | | | | | | net | | | | | | | | | | invest-m | | | | | | | | | | ent to | | | | | | | | | | Konecran | | | | | | | | | | es | | | | | | | | | | shares | | | | | | | | | -------------------------------------------------------------------------------- | Change | -24. | -64.2 | -36.9 | 38.8 | 2.9 | -45.3 | 15.1 | 50.0 | | of | 1 | | | | | | | | | interest | | | | | | | | | | -bearing | | | | | | | | | | debt | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | 0.0 | 0.0 | 0.0 | -53.3 | 0.0 | 0.0 | 0.0 | -46.8 | | s paid | | | | | | | | | | to | | | | | | | | | | equity | | | | | | | | | | holders | | | | | | | | | | of the | | | | | | | | | | parent | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | 0.0 | | s paid | | | | | | | | | | to | | | | | | | | | | minority | | | | | | | | | | interest | | | | | | | | | -------------------------------------------------------------------------------- | Net cash | -23. | -64.0 | -43.4 | -13.8 | 4.2 | -45.0 | 17.3 | 1.1 | | used in | 9 | | | | | | | | | financin | | | | | | | | | | g | | | | | | | | | | activiti | | | | | | | | | | es | | | | | | | | | -------------------------------------------------------------------------------- | Transl-a | 1.5 | -1.4 | -1.4 | 1.3 | -2.7 | 1.0 | 0.8 | -1.8 | | tion | | | | | | | | | | differen | | | | | | | | | | -ces in | | | | | | | | | | cash | | | | | | | | | -------------------------------------------------------------------------------- | Change | 49.1 | -8.4 | -19.1 | 15.1 | 25.8 | -2.2 | 17.6 | 3.8 | | of cash | | | | | | | | | | and cash | | | | | | | | | | equi-val | | | | | | | | | | ents | | | | | | | | | -------------------------------------------------------------------------------- | Cash and | 88.5 | 96.9 | 116.0 | 100.9 | 75.1 | 77.3 | 59.7 | 56.0 | | cash | | | | | | | | | | equi-val | | | | | | | | | | ents at | | | | | | | | | | beginnin | | | | | | | | | | g of | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Cash and | 137. | 88.5 | 96.9 | 116.0 | 100.9 | 75.1 | 77.3 | 59.7 | | cash | 5 | | | | | | | | | equi-val | | | | | | | | | | ents at | | | | | | | | | | end of | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Change | 49.1 | -8.4 | -19.1 | 15.1 | 25.8 | -2.2 | 17.6 | 3.8 | | of cash | | | | | | | | | | and cash | | | | | | | | | | equi-val | | | | | | | | | | ents | | | | | | | | | -------------------------------------------------------------------------------- QUARTERLY SEGMENT INFORMATION -------------------------------------------------------------------------------- | EUR | | | | | | | | | | million | | | | | | | | | -------------------------------------------------------------------------------- | Sales by | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | Business | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | | Area | | | | | | | | | -------------------------------------------------------------------------------- | Service | 170.5 | 157.6 | 169.5 | 169.7 | 220.6 | 187.2 | 180.5 | 166.1 | -------------------------------------------------------------------------------- | Standard | 157.6 | 148.3 | 168.2 | 178.2 | 256.4 | 206.7 | 203.9 | 168.3 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | Heavy | 128.8 | 92.7 | 127.9 | 129.7 | 219.8 | 160.5 | 144.8 | 134.2 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | ./. | -28.0 | -29.8 | -34.0 | -35.4 | -46.4 | -33.9 | -36.8 | -29.5 | | Internal | | | | | | | | | -------------------------------------------------------------------------------- | Total | 428.9 | 368.7 | 431.6 | 442.1 | 650.4 | 520.4 | 492.4 | 439.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operatin | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | g profit | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | | (EBIT) | | | | | | | | | | by | | | | | | | | | | Business | | | | | | | | | | Area | | | | | | | | | | excludin | | | | | | | | | | g | | | | | | | | | | restruc- | | | | | | | | | | turing | | | | | | | | | | costs | | | | | | | | | -------------------------------------------------------------------------------- | Service | 19.4 | 16.4 | 18.9 | 18.8 | 33.3 | 27.1 | 23.5 | 22.2 | -------------------------------------------------------------------------------- | Standard | 14.4 | 14.3 | 15.2 | 21.3 | 40.3 | 38.1 | 34.9 | 26.8 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | Heavy | 12.6 | 3.3 | 10.8 | 10.0 | 18.8 | 14.5 | 12.6 | 7.7 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | Group | -14.6 | -11.5 | -14.7 | -13.8 | -15.8 | -9.8 | -10.6 | -11.0 | | costs | | | | | | | | | -------------------------------------------------------------------------------- | Consolid | -4.5 | 1.6 | 0.5 | 0.5 | -0.1 | -1.0 | -2.0 | -0.7 | | ation | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Total | 27.3 | 24.0 | 30.7 | 36.8 | 76.5 | 69.0 | 58.3 | 45.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operatin | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | g | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | | margin, | | | | | | | | | | (EBIT %) | | | | | | | | | | by | | | | | | | | | | Business | | | | | | | | | | Area | | | | | | | | | | excludin | | | | | | | | | | g | | | | | | | | | | restruc- | | | | | | | | | | turing | | | | | | | | | | costs | | | | | | | | | -------------------------------------------------------------------------------- | Service | 11.4 | 10.4 | 11.1 | 11.1 | 15.1 % | 14.5 % | 13.0 % | 13.4 % | | | % | % | % | % | | | | | -------------------------------------------------------------------------------- | Standard | 9.2 % | 9.6 % | 9.1 % | 12.0 | 15.7 % | 18.4 % | 17.1 % | 15.9 % | | Lifting | | | | % | | | | | -------------------------------------------------------------------------------- | Heavy | 9.8 % | 3.5 % | 8.5 % | 7.7 % | 8.6 % | 9.0 % | 8.7 % | 5.8 % | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Orders | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | received | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | | by | | | | | | | | | | Business | | | | | | | | | | Area | | | | | | | | | -------------------------------------------------------------------------------- | Service | 121.8 | 124.5 | 126.4 | 125.6 | 159.3 | 170.1 | 172.6 | 156.1 | | 1) | | | | | | | | | -------------------------------------------------------------------------------- | Standard | 128.4 | 114.7 | 141.4 | 132.6 | 168.9 | 223.1 | 244.8 | 222.2 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | Heavy | 131.4 | 92.2 | 67.8 | 133.8 | 116.4 | 159.1 | 198.4 | 212.2 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | ./. | -20.5 | -22.9 | -26.0 | -22.3 | -35.1 | -36.3 | -36.5 | -28.2 | | Internal | | | | | | | | | -------------------------------------------------------------------------------- | Total | 361.1 | 308.5 | 309.6 | 369.7 | 409.6 | 515.9 | 579.3 | 562.3 | -------------------------------------------------------------------------------- | 1) Excl. | | | | | | | | | | Service | | | | | | | | | | Contract | | | | | | | | | | Base | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | book by | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | | Business | | | | | | | | | | Area | | | | | | | | | -------------------------------------------------------------------------------- | Service | 75.9 | 88.1 | 93.9 | 109.1 | 117.3 | 151.6 | 140.2 | 121.8 | -------------------------------------------------------------------------------- | Standard | 192.1 | 217.3 | 244.6 | 281.0 | 327.9 | 418.2 | 387.8 | 338.4 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | Heavy | 353.8 | 347.4 | 357.9 | 420.3 | 420.2 | 531.7 | 528.0 | 476.5 | | Lifting | | | | | | | | | -------------------------------------------------------------------------------- | ./. | -14.8 | -14.3 | -15.8 | -18.5 | -29.1 | -36.4 | -28.3 | -27.0 | | Internal | | | | | | | | | -------------------------------------------------------------------------------- | Total | 607.0 | 638.4 | 680.6 | 792.0 | 836.3 | 1065.2 | 1027.7 | 909.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales by | Q4/ | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ | | market | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- | Europe-M | 244.2 | 201.0 | 236.3 | 246.4 | 380.3 | 298.1 | 285.9 | 243.3 | | iddle | | | | | | | | | | East-Afr | | | | | | | | | | ica | | | | | | | | | | (EMEA) | | | | | | | | | -------------------------------------------------------------------------------- | Americas | 113.7 | 111.9 | 121.2 | 132.7 | 178.1 | 144.1 | 125.1 | 144.3 | | (AME) | | | | | | | | | -------------------------------------------------------------------------------- | Asia-Pac | 71.1 | 55.7 | 74.0 | 63.0 | 92.0 | 78.3 | 81.5 | 51.5 | | ific | | | | | | | | | | (APAC) | | | | | | | | | -------------------------------------------------------------------------------- | Total | 428.9 | 368.7 | 431.6 | 442.1 | 650.4 | 520.4 | 492.4 | 439.2 | -------------------------------------------------------------------------------- KONECRANES GROUP 2005 - 2009 -------------------------------------------------------------------------------- | Business | | 2009 | 2008 | 2007 | 2006 | 2005 | | development | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Orders | MEUR | 1,348.9 | 2,067.1 | 1,872.0 | 1,472.8 | 1,061.2 | | received | | | | | | | -------------------------------------------------------------------------------- | Order book | MEUR | 607.0 | 836.3 | 757.9 | 571.6 | 432.1 | -------------------------------------------------------------------------------- | Net sales | MEUR | 1,671.3 | 2,102.5 | 1,749.7 | 1,482.5 | 970.8 | -------------------------------------------------------------------------------- | of which | MEUR | 1,575.1 | 1,979.6 | 1,652.2 | 1,396.0 | 883.7 | | outside | | | | | | | | Finland | | | | | | | -------------------------------------------------------------------------------- | Export from | MEUR | 488.4 | 700.1 | 579.8 | 519.6 | 334.2 | | Finland | | | | | | | -------------------------------------------------------------------------------- | Personnel on | | 9,811 | 9,222 | 8,005 | 6,859 | 5,087 | | average | | | | | | | -------------------------------------------------------------------------------- | Personnel on | | 9,782 | 9,904 | 8,404 | 7,549 | 5,923 | | 31 December | | | | | | | -------------------------------------------------------------------------------- | Capital | MEUR | 25.7 | 22.3 | 25.2 | 16.3 | 16.0 | | expenditure | | | | | | | -------------------------------------------------------------------------------- | as a | % | 1.5% | 1.1% | 1.4% | 1.1% | 1.6% | | percentage | | | | | | | | of net sales | | | | | | | -------------------------------------------------------------------------------- | Research and | MEUR | 22.0 | 19.0 | 16.2 | 12.5 | 8.8 | | development | | | | | | | | costs | | | | | | | -------------------------------------------------------------------------------- | as % of Group | % | 1.3% | 0.9% | 0.9% | 0.8% | 0.9% | | net sales | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profitability | | | | | | | -------------------------------------------------------------------------------- | Net sales | MEUR | 1,671.3 | 2,102.5 | 1,749.7 | 1,482.5 | 970.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | MEUR | 97.9 | 248.7 | 192.3 | 105.5 | 49.3 | | profit | | | | | | | | (including | | | | | | | | restructuring | | | | | | | | costs) | | | | | | | -------------------------------------------------------------------------------- | as percentage | % | 5.9% | 11.8% | 11.0% | 7.1% | 5.1% | | of net sales | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income before | MEUR | 88.6 | 236.2 | 178.8 | 95.1 | 34.1 | | taxes | | | | | | | -------------------------------------------------------------------------------- | as percentage | % | 5.3% | 11.2% | 10.2% | 6.4% | 3.5% | | of net sales | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net income | MEUR | 62.5 | 166.6 | 129.2 | 68.6 | 24.1 | | (incl. | | | | | | | | minority) | | | | | | | -------------------------------------------------------------------------------- | as percentage | % | 3.7% | 7.9% | 7.4% | 4.6% | 2.5% | | of net sales | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Key figures | | | | | | | | and balance | | | | | | | | sheet | | | | | | | -------------------------------------------------------------------------------- | Equity (incl. | MEUR | 407.1 | 400.7 | 280.8 | 223.7 | 152.1 | | minority) | | | | | | | -------------------------------------------------------------------------------- | Balance Sheet | MEUR | 1,060.4 | 1,205.4 | 956.9 | 919.0 | 724.0 | -------------------------------------------------------------------------------- | Return on | % | 15.5 | 48.9 | 51.2 | 36.5 | 16.6 | | equity | | | | | | | -------------------------------------------------------------------------------- | Return on | % | 19.3 | 56.3 | 50.4 | 29.5 | 17.2 | | capital | | | | | | | | employed | | | | | | | -------------------------------------------------------------------------------- | Current ratio | | 1.4 | 1.5 | 1.3 | 1.4 | 1.1 | -------------------------------------------------------------------------------- | Solidity | % | 45.1 | 39.9 | 36.1 | 28.3 | 23.7 | -------------------------------------------------------------------------------- | Gearing | % | -19.1 | 2.8 | 7.0 | 57.3 | 88.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shares in | | | | | | | | figures | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | EUR | 1.08 | 2.83 | 2.17 | 1.17 | 0.43 | | share. basic | | | | | | | -------------------------------------------------------------------------------- | Earnings per | EUR | 1.08 | 2.82 | 2.13 | 1.15 | 0.42 | | share. diluted | | | | | | | -------------------------------------------------------------------------------- | Equity per | EUR | 6.84 | 6.75 | 4.80 | 3.77 | 2.66 | | share | | | | | | | -------------------------------------------------------------------------------- | Cash flow per | EUR | 3.79 | 1.82 | 3.08 | 1.39 | 0.86 | | share | | | | | | | -------------------------------------------------------------------------------- | Dividend per | EUR | 0.90* | 0.90 | 0.80 | 0.45 | 0.28 | | share | | | | | | | -------------------------------------------------------------------------------- | Dividend / | % | 83.3 | 31.8 | 36.9 | 38.5 | 64.3 | | earnings | | | | | | | -------------------------------------------------------------------------------- | Effective | % | 4.7 | 7.5 | 3.4 | 2.0 | 2.6 | | dividend yield | | | | | | | -------------------------------------------------------------------------------- | Price / | | 17.7 | 4.3 | 10.9 | 19.1 | 24.3 | | earnings | | | | | | | -------------------------------------------------------------------------------- | Trading low / | EUR | 10.61/ | 9.90/ | 20.68/ | 10.23/ | 7.45/ | | high | | 22.04 | 32.50 | 34.90 | 22.33 | 10.49 | -------------------------------------------------------------------------------- | Average share | EUR | 16.66 | 21.05 | 27.41 | 15.04 | 8.94 | | price | | | | | | | -------------------------------------------------------------------------------- | Share price on | EUR | 19.08 | 12.08 | 23.58 | 22.30 | 10.41 | | 31 December | | | | | | | -------------------------------------------------------------------------------- | Year-end | MEUR | 1,122.1 | 713.6 | 1,379.6 | 1,322.0 | 594.1 | | market | | | | | | | | capitalization | | | | | | | -------------------------------------------------------------------------------- | Number traded | (1,000) | 113,270 | 171,519 | 128,266 | 114,023 | 73,164 | -------------------------------------------------------------------------------- | Stock turnover | % | 192.6 | 290.4 | 219.2 | 192.3 | 128.1 | -------------------------------------------------------------------------------- | Average number | (1,000) | 58,922 | 58,726 | 59,609 | 58,383 | 56,496 | | of shares | | | | | | | | outstanding. | | | | | | | | basic | | | | | | | -------------------------------------------------------------------------------- | Average number | (1,000) | 59,086 | 58,987 | 60,507 | 59,736 | 57,632 | | of shares | | | | | | | | outstanding. | | | | | | | | diluted | | | | | | | -------------------------------------------------------------------------------- | Number of | (1,000) | 58,813 | 59,070 | 58,506 | 59,285 | 57,102 | | shares | | | | | | | | outstanding | | | | | | | -------------------------------------------------------------------------------- * The Board's proposal to the AGM CALCULATION OF KEY FIGURES Return on equity (%) = Net profit for the period x 100 : Total equity (average during the period) Return on capital employed (%) = (Income before taxes + interest paid + other financing cost) x 100 : (Total amount of equity and liabilities - non-interest bearing debts (average during the period)) Current ratio = Current assets : Current liabilities Solidity (%)= Shareholders' equity x 100 : (Total amount of equity and liabilities - advance payment received) Gearing (%) = (Interest-bearing liabilities - liquid assets - loans receivable) x 100 : Total equity Earnings per share = Net profit for the shareholders of the parent company : Average number of shares outstanding Earnings per share. diluted= Net profit for the shareholders of the parent company : Average fully diluted number of shares outstanding Equity per share = Equity attributable to the shareholders of the parent company : Number of shares outstanding Cash flow per share = Net cash flow from operating activities : Average number of shares outstanding Effective dividend yield (%) = Dividend per share x 100 : Share price at the end of financial year Price per earnings = Share price at the end of financial year : Earnings per share Year -end market capitalization = Number of shares outstanding multiplied by the share price at the end of year Average number of personnel = Calculated as average of number of personnel in quarters Number of shares outstanding = Number of all shares - treasury shares - shares owned by KCR Management Oy Analyst and press briefing An analyst and press conference will be held in the G.W. Sundmans Auditorium (address Eteläranta 16. Helsinki) at 12.00 p.m. Finnish time. The financial statements will be presented by Konecranes' President and CEO Pekka Lundmark and CFO Teo Ottola. A live webcast of the conference with the opportunity to ask questions on the 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-March 2010 interim report will be published on April 28. 2010. Sender: KONECRANES PLC Miikka Kinnunen Director, Investor Relations For further information, please contact: 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 9,800 employees at 545 locations in 43 countries. Konecranes is listed on the NASDAQ OMX Helsinki Ltd (symbol: KCR1V). Distribution Media NASDAQ OMX Helsinki Exchange www.konecranes.com
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