Friday , 24 January 2020
Latest News
Konecranes president and CEO Pekka Lundmark said that “after the first three quarters of 2011 with only mediocre results, we were able to significantly improve our result during the fourth quarter.” Strong delivery volumes generated an operating profit of Euro 47.5m before restructuring costs.

Restructuring costs hit Konecranes profits

Lundmark said that the company also announced certain restructuring measures during Q4 which resulted in one-time charges of Euro 10.3m in the quarter.

Full-year 2011 operating profit before restructuring costs was marginally higher than in 2010 and he announced that “all in all, we are satisfied with our top-line growth and market share in 2011, but not with the profit.”

Year 2011 highlights include: orders received Euro 1,896.1m (+23.4%); sales Euro 1,896.4m (+22.6%); operating profit before restructuring costs Euro 117.2m (+ 6.2 %); restructuring costs Euro 10.3m and operating profit, including restructuring costs, Euro 106.9m.

Lundmark went on to say that although the company had successfully increased prices to compensate for the increased costs, “competition remains tough in the most parts of the world.”

Konecranes is actively reducing its fixed costs in places where growth opportunities are limited – Western Europe being the most apparent.

Lundmark explained that the company started this year (2012) with an order book that was 31.2% higher than a year ago. The current level of new inquires is reasonably good, but it is very hard to forecast the second half of 2012.

“Based on the order book, we forecast that both our sales and operating profit in 2012 will be higher than in 2011,” said Lundmark.