Konecranes Q1 strong orders and improving profits

Konecranes reports that its Q1 order intake was up 59.4% on the same period in 2010 to Euro510.9m; sales of Euro 387.8m were up 26.6% and operating profit was up 60% to Euro 18.5m.


According to the company, demand for new equipment is expected to grow compared to last year although due to the timing of large port crane projects, the quarterly equipment order intake may fluctuate significantly.


Year 2011 sales and operating profit are forecast to be higher than in 2010, with increased technology and IT development adding around Euro 20m to the company’s cost base from 2011 with benefits following from 2012 onwards.


Pekka Lundmark, Konecranes president and CEO said, “We are pleased with the development of demand during the first quarter of 2011. Our order intake, boosted by several large port crane projects, was the fourth highest in our history. Also the demand for industrial cranes, lift trucks and maintenance services developed in a promising manner. As is typical for the beginning of the year, our deliveries were low. This seasonality, in combination with weaker product mix and higher technology and IT development spending, held back our margin improvement. Even though operating profit increased by a solid 60% from the first quarter of 2010, the 4.8% margin was somewhat behind our own targets.”


“Our strong order book gives a good reason for optimism for the upcoming quarters, but uncertainties concerning the world economic development in general and the growing inflationary pressures in particular, also call for some caution in business planning,” Lundmark concluded.
(Source:http://www.container-mag.com)