2016-04-27 08:00:02 CEST
2016-04-27 08:00:02 CEST
REGULATED INFORMATION
Konecranes Oyj - Interim report (Q1 and Q3)
Konecranes Plc Interim Report January-March 2016
KONECRANES PLC INTERIM REPORT April 27, 2016 at 9:00 a.m.
ADJUSTED EBIT SLIGHTLY ABOVE THE PREVIOUS YEAR DESPITE LOWER SALES, ORDER
INTAKE LOW DUE TO PORT CRANES
Figures in brackets, unless otherwise stated, refer to the same period a year
earlier.
FIRST QUARTER HIGHLIGHTS
- Order intake EUR 425.1 million (518.8), -18.1 percent; Service -0.8 percent
and Equipment -28.9 percent.
- Order book EUR 1,035.6 million (1,111.1) at the end of March, 6.8 percent
lower than a year ago.
- Sales EUR 458.6 million (474.9), -3.4 percent; Service -2.0 percent and
Equipment -6.3 percent.
- Adjusted operating profit* EUR 14.8 million (14.2), 3.2 percent of sales
(3.0).
- Adjustments* EUR -14.4 million (-2.3).
- Operating profit EUR 0.3 million (11.8), 0.1 percent of sales (2.5).
- Earnings per share (diluted) EUR -0.09 (0.10).
- Net cash flow from operating activities EUR -3.1 million (-54.4).
- Net debt EUR 206.9 million (199.4) and gearing 52.7 percent (46.8).
*Adjustments (earlier term non-recurring items included the same items
affecting the operating profit) include restructuring costs, transaction costs
relating to the proposed merger with Terex, and the unwarranted payments due to
identity theft and fraudulent actions (only in the third quarter of 2015, not
deducted by crime insurance indemnity). The corresponding terminology change
has been made to the financial guidance. Konecranes’ management believes that
the adjusted operating profit is relevant for understanding the financial
performance when comparing the result for the current period with previous
periods.
MARKET OUTLOOK
Customers are cautious about investing as economic growth has slowed down
across the globe. Companies operating in emerging and commodity markets are
particularly under pressure to save costs. Business activity in the North
American manufacturing industry is showing signs of bottoming out. Demand
situation in Europe is stable. The decline in the global container throughput
has led to slower decision-making among container terminal operators.
FINANCIAL GUIDANCE
Based on the order book, the service contract base and the near-term demand
outlook, the sales in 2016 are expected to be higher than in 2015. We expect
the 2016 adjusted operating profit to improve from 2015.
KEY FIGURES 1-3/201 1-3/201 Change R12M 2015
6 5 %
--------------------------------------------------------------------------------
Orders received, MEUR 425.1 518.8 -18.1 1,871.8 1,965.5
--------------------------------------------------------------------------------
Order book at end of period, MEUR 1,035.6 1,111.1 -6.8 1,036.5
--------------------------------------------------------------------------------
Sales total, MEUR 458.6 474.9 -3.4 2,109.9 2,126.2
--------------------------------------------------------------------------------
Adjusted EBITDA, MEUR *) 27.1 25.8 4.8 167.7 166.5
--------------------------------------------------------------------------------
Adjusted EBITDA, % *) 5.9 5.4 7.9 7.8
--------------------------------------------------------------------------------
Adjusted operating profit, MEUR *) 14.8 14.2 4.0 118.3 117.7
--------------------------------------------------------------------------------
Adjusted operating margin, % *) 3.2 3.0 5.6 5.5
--------------------------------------------------------------------------------
EBITDA, MEUR 14.3 24.6 -41.8 106.8 117.1
--------------------------------------------------------------------------------
EBITDA, % 3.1 5.2 5.1 5.5
--------------------------------------------------------------------------------
Operating profit, MEUR 0.3 11.8 -97.4 51.5 63.0
--------------------------------------------------------------------------------
Operating margin, % 0.1 2.5 2.4 3.0
--------------------------------------------------------------------------------
Profit before taxes, MEUR -7.1 8.1 -187.8 40.3 55.4
--------------------------------------------------------------------------------
Net profit for the period, MEUR -5.1 5.6 -190.9 20.1 30.8
--------------------------------------------------------------------------------
Earnings per share, basic, EUR -0.09 0.10 -189.8 0.34 0.53
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR -0.09 0.10 -189.9 0.34 0.53
--------------------------------------------------------------------------------
Gearing, % 52.7 46.8 44.6
--------------------------------------------------------------------------------
Return on capital employed % 7.4 9.5
--------------------------------------------------------------------------------
Free cash flow, MEUR -6.9 -62.6 54.3 -1.4
--------------------------------------------------------------------------------
Average number of personnel during 11,748 11,944 -1.6 11,934
the period
--------------------------------------------------------------------------------
*) Adjustments in 2016 include transaction costs, which contain advisory, legal
and consulting fees related to Konecranes Terex merger and restructuring costs.
Full year 2015 adjustments included transaction costs, restructuring costs and
the unwarranted payments due to the identity theft and fraudulent actions. See
also note 12 in the interim report.
President and CEO Panu Routila:
“Our first-quarter figures were a reflection of tough market conditions, but
there are signs of improving earnings capacity thanks to restructuring actions.
Business Area Equipment order intake came in 29 percent below the last year’s
level. The decline was entirely explained by the port cranes business; the port
cranes order intake was low in the first three months of the year. Our recently
announced shipyard crane order and offer base point to stronger port crane
orders in the second quarter. Otherwise, the first-quarter orders received were
basically flat overall in the other equipment businesses whereas order intake
decreased by 1 percent from the previous year in Business Area Service.
Sales in Business Area Equipment fell 6 percent below last year’s level due to
a lower order book for industrial cranes and timing of deliveries in the port
cranes and lift trucks businesses. Despite the sales decline, its adjusted EBIT
rose by EUR 4 million from the previous year, which shows that the
restructuring and cost savings actions are showing results. Business Area
Service’s sales decreased by 2 percent and adjusted EBIT by 12 percent on a
year-on-year basis due to temporary business interruption related to the
implementation of the new IT systems and processes, timing of deliveries and
market softness in commodity driven industries, and changes in spare parts
distribution, which affected deliveries during the quarter.
Our efficiency improvement actions and organizational changes announced in
February are proceeding as planned, which will support the EBIT in the coming
quarters. We expect the full-year 2016 sales growth to be generated in the
second half of the year given the timing of port crane deliveries.”
DISCLOSURE PROCEDURE
Konecranes follows the disclosure procedure enabled by Disclosure obligation of
the issuer (7/2013) published by the Finnish Financial Supervision Authority.
This stock exchange release is a summary of Konecranes Plc’s interim report
January-March 2016. The complete report is attached to this release in pdf
format and is also available on Konecranes’ website at www.konecranes.com.
ANALYST AND PRESS BRIEFING
An analyst and press conference will be held at the restaurant Savoy’s
Salikabinetti (address: Eteläesplanadi 14) at 11.00 a.m. Finnish time. The
Interim Report will be presented by Konecranes’ President and CEO Panu Routila
and CFO Teo Ottola.
A live webcast of the conference will begin at 11.00 a.m. at
www.konecranes.com. Please see the stock exchange release dated April 5, 2016
for the conference call details.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
Mr. Panu Routila, President and CEO, tel. +358 20 427 2000
Mr. Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040
Mr. Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050
Mr. Mikael Wegmüller, Vice President, Marketing and Communications, tel. +358
20 427 2008
Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2015, Group sales totaled EUR 2,126 million. The Group has 11,600
employees at 600 locations in 48 countries. Konecranes is listed on the Nasdaq
Helsinki (symbol: KCR1V).
DISTRIBUTION
Nasdaq Helsinki
Media
www.konecranes.com
Forward Looking Statements
This document contains forward-looking statements regarding future events,
including statements regarding Terex or Konecranes, the transaction described
in this document and the expected benefits of such transaction and future
financial performance of the combined businesses of Terex and Konecranes based
on each of their current expectations. These statements involve risks and
uncertainties that may cause results to differ materially from those set forth
in the statements. When included in this document, the words “may,” “expects,”
“intends,” “anticipates,” “plans,” “projects,” “estimates,” and the negatives
thereof and analogous or similar expressions are intended to identify
forward-looking statements. However, the absence of these words does not mean
that the statement is not forward-looking. Terex and Konecranes have based
these forward-looking statements on current expectations and projections about
future events. These statements are not guarantees of future performance.
Because forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many of which
are beyond the control of Konecranes, include, among others: the ability of
Terex and Konecranes to obtain shareholder approval for the transaction, the
ability of Terex and Konecranes to obtain regulatory approval for the
transaction, the possibility that the length of time required to complete the
transaction will be longer than anticipated, the achievement of the expected
benefits of the transaction, risks associated with the integration of the
businesses of Terex and Konecranes, the possibility that the businesses of
Terex and Konecranes may suffer as a result of uncertainty surrounding the
proposed transaction, and other factors, risks and uncertainties that are more
specifically set forth in Terex’s public filings with the SEC and Konecranes’
annual and interim reports. Konecranes disclaims any obligation to update the
forward-looking statements contained herein.
IMPORTANT ADDITIONAL INFORMATION
This document relates to the proposed merger of Terex and Konecranes through
which all of Terex common stock will be exchanged for Konecranes ordinary
shares (or American depositary shares, if required). This document is for
informational purposes only and does not constitute an offer to purchase or
exchange, or a solicitation of an offer to sell or exchange all of Terex common
stock, nor is it a substitute for the Preliminary Prospectus included in the
Registration Statement in Form F-4 (the “Registration Statement”) to be filed
by Konecranes with the SEC, the Prospectus/Proxy to be filed by Terex with the
SEC, the listing prospectus of Konecranes to be filed by Konecranes with the
Finnish Financial Supervisory Authority (and as amended and supplemented from
time to time, the “Merger Documents”). No offering of securities shall be made
in the United States, except by means of a prospectus meeting the requirements
of section 10 of the U.S. Securities Act of 1933.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE MERGER DOCUMENTS AND ALL
OTHER RELEVANT DOCUMENTS THAT KONECRANES OR TEREX HAS FILED OR MAY FILE WITH
THE SEC, NASDAQ HELSINKI, OR FINNISH FINANCIAL SUPERVISORY AUTHORITY WHEN THEY
BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION
THAT INVESTORS AND SECURITY HOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION
REGARDING THE PROPOSED MERGER.
The information contained in this document must not be published, released or
distributed, directly or indirectly, in any jurisdiction where the publication,
release or distribution of such information is restricted by laws or
regulations. Therefore, persons in such jurisdictions into which these
materials are published, released or distributed must inform themselves about
and comply with such laws or regulations. Konecranes and Terex do not accept
any responsibility for any violation by any person of any such restrictions.
The Merger Documents and other documents referred to above, if filed or
furnished by Konecranes or Terex with the SEC, as applicable, will be available
free of charge at the SEC’s website (www.sec.gov) or can be requested by
writing to Anna-Mari Kautto, Investor Relations Assistant, Konecranes Plc, P.O.
Box 661, FI-05801 Hyvinkää, Finland or Elizabeth Gaal, Investor Relations
Associate, Terex, 200 Nyala Farm Road, Westport, CT 06880, USA.
Konecranes and Terex and their respective directors, executive officers and
employees, and other persons may be deemed to be participants in the
solicitation of proxies in respect of the transaction. Information regarding
Konecranes' directors and executive officers is available in Konecranes’ annual
report for fiscal year 2015 at www.konecranes.com. Information about Terex
directors and executive officers and their ownership of the Terex ordinary
shares is available in its Schedule 14A filed with the SEC on April 1, 2016.
Other information regarding the interests of such individuals as well as
information regarding Konecranes and Terex directors and officers will be
available in the proxy statement/prospectus when it becomes available. These
documents can be obtained free of charge from the sources indicated above.
© 2024 Nasdaq, Inc. All Rights Reserved |