Konecranes Reports Strong Order Intake in Latest Financial Results

Konecranes has highlighted its financial results for the second quarter and first half of 2012 in a recent statement.

For the second quarter:

Order intake grew 22.3 percent to EUR 553.7 million ($678.26 million), and the order book was EUR 1,122.8 million ($1.375 billion) at the end of June—14.5 percent higher than a year ago and 4.4 percent higher than at end-March 2012.

Sales at Konecranes increased 22.1 percent to EUR 561.2 million ($687.45 million). Operating profit was 6.2 percent of sales EUR 34.7 million ($42.5 million).

From January to June:

Order intake increased 12.9 percent to EUR 1,088.3 million (1.33 billion).

Sales consisted of a 22.2 percent increase to EUR 1,035.2 million ($1.27 billion). Operating profit was EUR 58.7 million ($71.9 million), 5.7 percent of sales.

According to Konecranes, the current offer base remains on a good level. However, there are some signs of a weakening global demand due to the continuing crisis within the Eurozone and slower economic growth in some emerging markets. Based on the order book, it forecasts 2012 sales and operating profit to be higher than 2011.

“Our business developed largely according to our own expectations during the second quarter,” said Pekka Lundmark, president and CEO “Order intake was strong, especially once the current uncertain times are taken into account. Our order book value set again a new record, which gives us some flexibility going forward. This is important since there are signs of a weakening demand in some parts of the world. We have a good number of new opportunities in our sales funnel, but there is a growing risk that customers may hold up their investment decisions in the anticipation of some kind of a solution to the Eurozone crisis and other global economic uncertainties.

“As we had expected, the operational leverage increased in the quarter. Slower fixed cost growth in combination with higher volumes delivered a higher operating profit. Improvement is now fastest in the service business where sales margins and product mix are stable. Equipment business leverage is also improving, but more slowly since there is a slight weakening in the product mix and the competitive situation remains tight.”