Konecranes Oyj
CONTINUED STRONG ORDER INTAKE, GUIDANCE UNCHANGED

Konecranes Oyj 

21.07.2011 08:00
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KONECRANES PLC INTERIM REPORT July 21, 2011 at 9:00 a.m.

CONTINUED STRONG ORDER INTAKE, GUIDANCE UNCHANGED


Figures in brackets, unless otherwise stated, refer to the same period a year
earlier 


SECOND QUARTER HIGHLIGHTS

 - Order intake EUR 452.8 million (364.4), +24.3 percent; Service +17.1 percent
and Equipment +34.7 percent. 

- Order book EUR 981.0 million (685.2) at end-June, 43.2 percent higher than a
year ago, 2.6 percent higher than at end-March 2011. 

- Sales EUR 459.5 million (377.0), +21.9 percent; Service +10.8 percent and
Equipment +30.4 percent. 

- Operating profit EUR 25.1 million (20.7), 5.5 percent of sales (5.5).
Comparison period included restructuring costs of EUR 2.7 million. 

- Earnings per share (diluted) EUR 0.26 (0.25).

- Net cash flow from operating activities EUR -27.5 million (-6.3).

- Net debt EUR 116.0 million (19.0) and gearing 26.4 percent (4.7).


JANUARY-JUNE HIGHLIGHTS

- Order intake EUR 963.7 million (684.9), +40.7 percent; Service +18.3 percent
and Equipment +58.6 percent. 

- Sales EUR 847.3 million (683.3), +24.0 percent; Service +13.0 percent and
Equipment +29.9 percent. 

- Operating profit EUR 43.6 million (32.3), 5.2 percent of sales (4.7).
Comparison period included restructuring costs of EUR 2.7 million. 

- Earnings per share (diluted) EUR 0.40 (0.41).

- Net cash flow from operating activities EUR -29.6 million (-5.8).


MARKET OUTLOOK

Forecasting the demand has become more challenging due to the macroeconomic
uncertainties caused by the budget deficits and the level of public debt in
Europe and the US. Despite the aforesaid, the demand for maintenance services
is expected to be above last year's level due to the higher capacity
utilization within customer industries. Also, the demand for new equipment is
expected to grow compared to last year. However, due to the timing of large
port crane projects, the quarterly Equipment order intake may fluctuate
significantly. 


FINANCIAL GUIDANCE

We forecast year 2011 sales and operating profit to be higher than in 2010. The
increased technology and IT development will add approximately EUR 20 million
to our cost base from 2011, while the benefits will follow from 2012 onwards. 




KEY FIGURES                Second quarter        First half year                
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                           4-6/    4-6/  Change   1-6/    1-6/   R12M     2010  
                           2011    2010     %     2011    2010                  
--------------------------------------------------------------------------------
Orders received, MEUR      452.8  364.4    24.3   963.7  684.9  1,814.8  1,536.0
--------------------------------------------------------------------------------
Order book at end of       981.0  685.2    43.2   981.0  685.2             756.2
 period, MEUR                                                                   
--------------------------------------------------------------------------------
Sales total, MEUR          459.5  377.0    21.9   847.3  683.3  1,710.3  1,546.3
--------------------------------------------------------------------------------
Operating profit            25.1   23.4     7.4    43.6   35.0    123.7    115.1
 excluding                                                                      
restructuring                                                                   
costs, MEUR                                                                     
--------------------------------------------------------------------------------
Operating margin             5.5    6.2             5.2    5.1      7.2      7.4
 excluding                                                                      
restructuring                                                                   
costs, %                                                                        
--------------------------------------------------------------------------------
Operating profit            25.1   20.7    21.2    43.6   32.3    123.7    112.4
 including                                                                      
restructuring                                                                   
costs, MEUR                                                                     
--------------------------------------------------------------------------------
Operating margin             5.5    5.5             5.2    4.7      7.2      7.3
 including                                                                      
restructuring                                                                   
costs, %                                                                        
--------------------------------------------------------------------------------
Profit before               22.0   20.8     6.1    33.8   33.2    112.0    111.3
taxes, MEUR                                                                     
--------------------------------------------------------------------------------
Net profit                  15.3   14.5     5.5    23.6   23.3     78.5     78.2
for the period, MEUR                                                            
--------------------------------------------------------------------------------
Earnings per share,         0.26   0.26     1.4    0.40   0.41     1.34     1.35
 basic, EUR                                                                     
--------------------------------------------------------------------------------
Earnings per share,         0.26   0.25     0.5    0.40   0.41     1.33     1.34
 diluted, EUR                                                                   
--------------------------------------------------------------------------------
Gearing, %                                         26.4    4.7              -3.8
--------------------------------------------------------------------------------
Return on capital                                                  21.3     24.2
 employed %,                                                                    
Rolling 12 Months                                                               
(R12M)                                                                          
--------------------------------------------------------------------------------
Average number of                                10,637  9,638             9,739
 personnel                                                                      
during the period                                                               
--------------------------------------------------------------------------------


President and CEO Pekka Lundmark:

'We can be satisfied with our top line growth and, in particular, with the fact
that our order book is now 43.2 percent stronger than a year ago. A tight
pricing environment and the cost inflation in combination with our own
decisions to increase technology and IT development spending to ensure our
competitiveness in the long run is, unfortunately, slowing down the bottom line
growth. Increasing prices wherever possible and a tight cost control are clear
priorities for us right now. 

The ongoing consolidation of our industry took a significant step forward
through the acquisition of the majority of Demag Cranes AG by Terex
Corporation. We were of course following the situation very closely, but
decided after a thorough assessment not to issue a competing offer. Several
factors contributed to this conclusion, including (1) historical performance
and a predominantly European asset base that did not, in our view, warrant the
required price when the world's industrial growth is more and more driven by
emerging markets,(2) the uncertain economic outlook, especially within the
eurozone, and (3) uncertainty over potential antitrust risks.' 


ANALYST AND PRESS BRIEFING

An analyst and press conference will be held at G.W. Sundmans' Auditorium
(address Eteläranta 16) at 11.00 a.m. Finnish time. The Interim Report will be
presented by Konecranes' President and CEO Pekka Lundmark and CFO Teo Ottola. 

A live webcast of the conference will begin at 11.00 a.m. at
www.konecranes.com. Please see the stock exchange release dated July 7, 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(TM), 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 almost
11,200 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


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Language:     English
Company:      Konecranes Oyj
              
               
              Finland
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Fax:          
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Internet:     
ISIN:         FI0009005870
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