Konecranes Oyj - Interim report (Q1 and Q3)

CONTINUED ORDER GROWTH, 2011 OPERATING PROFIT FORECASTED TO BE APPROXIMATELY ON 2010 LEVEL

Figures in brackets, unless otherwise stated, refer to the same period in the
previous year. 

 THIRD QUARTER HIGHLIGHTS

- Order intake EUR 458.5 million (373.4), +22.8 percent; Service +3.5 percent
and Equipment +31.7 percent. 

- Order book EUR 1,040.1 million (679.7) at end-September, 53.0 percent higher
than a year ago, 6.0 percent higher than at end-June 2011. 

- Sales EUR 450.9 million (393.6), +14.6 percent; Service +13.2 percent and
Equipment +9.9 percent. 

- Operating profit EUR 26.0 million (34.3), 5.8 percent of sales (8.7).

- Earnings per share (diluted) EUR 0.31 (0.39).

- Net cash flow from operating activities EUR -1.6 million (32.1).

- Net debt EUR 203.3 million (0.7) and gearing 49.7 percent (0.2).



JANUARY-SEPTEMBER HIGHLIGHTS

- Order intake EUR 1,422.2 million (1,058.3), +34.4 percent; Service +13.3
percent and Equipment +48.8 percent. 

- Sales EUR 1,298.2 million (1,076.9), +20.6 percent; Service +13.1 percent and
Equipment +22.3 percent. 

- Operating profit EUR 69.7 million (66.6), 5.4 percent of sales (6.2).
Comparison period included restructuring costs of EUR 2.7 million. 

- Earnings per share (diluted) EUR 0.70 (0.80).

- Net cash flow from operating activities EUR -31.2 million (26.2).



MARKET OUTLOOK

Forecasting the demand continues to be challenging due to the macroeconomic
uncertainties caused by the budget deficits and the level of public debt in
Europe and the US. We have started to see signs of a weakening demand, but the
level of new inquiries is still reasonably good. 


FINANCIAL GUIDANCE

We forecast the 2011 operating profit, excluding possible restructuring costs,
to be approximately on the same level as in 2010. Sales are expected to be
higher than in 2010. 

Business Area Service operating profit in 2011 is expected to fall short of
2010 level. The 2011 operating profit of the Business Area Equipment is
forecasted to increase from 2010. 



KEY FIGURES                        Third quarter           January-September 
--------------------------------------------------------------------------------
------------- 
                                   7-9/      7-9/  Change   1-9/     1-9/    
R12M     2010 
                                   2011      2010     %     2011     2010 
--------------------------------------------------------------------------------
------------- 
Orders received, MEUR                458.5  373.4    22.8  1,422.2  1,058.3 
1,899.9  1,536.0 
--------------------------------------------------------------------------------
------------- 
Order book at end of period, MEUR  1,040.1  679.7    53.0  1,040.1    679.7    
        756.2 
--------------------------------------------------------------------------------
------------- 
Sales total, MEUR                    450.9  393.6    14.6  1,298.2  1,076.9 
1,767.6  1,546.3 
--------------------------------------------------------------------------------
------------- 
EBITDA, MEUR                          35.5   42.1   -15.5     97.0     89.7   
150.8    143.6 
--------------------------------------------------------------------------------
------------- 
EBITDA, %                             7.9%  10.7%             7.5%     8.3%    
8.5%     9.3% 
--------------------------------------------------------------------------------
------------- 
Operating profit excluding            26.0   34.3   -24.0     69.7     69.2   
115.5    115.1 
restructuring 
costs, MEUR 
--------------------------------------------------------------------------------
------------- 
Operating margin excluding            5.8%   8.7%             5.4%     6.4%    
6.5%     7.4% 
restructuring 
costs, % 
--------------------------------------------------------------------------------
------------- 
Operating profit including            26.0   34.3   -24.0     69.7     66.6   
115.5    112.4 
restructuring 
costs, MEUR 
--------------------------------------------------------------------------------
------------- 
Operating margin including            5.8%   8.7%             5.4%     6.2%    
6.5%     7.3% 
restructuring 
costs, % 
--------------------------------------------------------------------------------
------------- 
Profit before                         26.3   32.7   -19.7     60.1     65.9   
105.6    111.3 
taxes, MEUR 
--------------------------------------------------------------------------------
------------- 
Net profit                            18.3   23.0   -20.2     42.0     46.3    
73.9     78.2 
for the period, MEUR 
--------------------------------------------------------------------------------
------------- 
Earnings per share, basic, EUR        0.31   0.39   -21.4     0.71     0.80    
1.26     1.35 
--------------------------------------------------------------------------------
------------- 
Earnings per share, diluted, EUR      0.31   0.39   -21.8     0.70     0.80    
1.25     1.34 
--------------------------------------------------------------------------------
------------- 
Gearing, %                                                   49.7%     0.2%    
        -3.8% 
--------------------------------------------------------------------------------
------------- 
Return on capital employed %,                                                 
19.0%    24.2% 
Rolling 12 Months 
(R12M) 
--------------------------------------------------------------------------------
------------- 
Average number of personnel                                 10,834    9,677    
        9,739 
during the period 
--------------------------------------------------------------------------------
------------- 



President and CEO Pekka Lundmark,

“I am obviously not satisfied with our third quarter as a whole, and the main
concern is lower-than-planned operating profit in Service. We have invested a
lot in growth: system and technology development, service network expansion and
training in order to be able to deliver higher value services and higher
volumes. These are all good investments, but now when the realized growth is
lagging behind expectations we are reconsidering certain parts of our plan. We
will initiate actions in the fourth quarter to lower fixed costs in the Service
business, especially in Europe. 

On balance, there is a lot of positive news in the quarter as well. Our total
order intake, EUR 459 million, is 23 percent higher than a year ago. I am
satisfied with the margin level in these orders. In general, our equipment
business is progressing according to the plan and the strong order book in that
business gives us visibility and some time to adjust should the recent negative
trend in the world economy continue.” 


ANALYST AND PRESS BRIEFING

An analyst and press conference will be held at restaurant Savoy´s Salicabinet
(address Eteläesplanadi 14, 7th floor) at 11.00 a.m. Finnish time. The Interim
Report will be presented by Konecranes' President and CEO Pekka Lundmark and
CFO Teo Ottola. 

A live webcast of the conference will begin at 11.00 a.m. at
www.konecranes.com. Please see the stock exchange release of October 6, 2011,
for the conference call details. 


KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations


FURTHER INFORMATION
Mr Pekka Lundmark, President and CEO, tel. +358 20 427 2000
Mr Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr Mikael Wegmüller, Vice President, Marketing and Communications, tel. +358 20
427 2008 


Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2010, Group sales totaled EUR 1,546 million. The Group has 11,400
employees at 578 locations in 46 countries. Konecranes is listed on the NASDAQ
OMX Helsinki (symbol: KCR1V). 


DISTRIBUTION
Media
NASDAQ OMX Helsinki
www.konecranes.com

Attachments:

Q3 Interim eng.pdf