Wednesday , 18 September 2019
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Konecranes reports mixed half-year

Konecranes port solutions sector reported a mixed half-year as orders fell by 10.2% year-on-year to €456.9m (US$534.9m) while both the order book and sales grew.

Orders suffered due to an 11.8% decline in the second quarter resulting from a fall in mobile harbour crane orders – although this was slightly offset by rubber-tyred gantry cranes (RTG) orders – but the order book increased by 1.7% to €830.7m (US$971.3m) while sales rose by 6% to €444.2m (US$519.4m).

Adjusted earnings before interest, tax and amortisation (EBITA) rose from €15.5m (US$18.1m) to €25.5m (US$29.8m) while adjusted EBITA margin rose from 3.7% to 5.7% Operating profit totalled €20.2m (US$23.6m), up from €8.6m (US$10.1m), and operating margin improved from 2.1% to 4.6%.

Panu Routila, Konecranes president and CEO, said: “Overall the market sentiment for port solutions business area remains stable and at a good level.

“The particularly good project execution for both finalised and ongoing projects helped to boost port solution’s EBITA margin in the second quarter. However, some of this was specific to the first half of the year, and it is therefore unlikely that port solutions would be able to carry its current margin performance fully into the second half.”

Across all business sectors, Konecranes reported a 3.7% fall in orders to €760.9m (US$889.8m). The order book rose 2.6% to €1.65bn (US$1.93bn) and sales were down 3% to €772.2m (US$903m).

Routila said: “While the key macroeconomic indicators are signalling slowing growth in many economies, including Europe and the US, our own demand environment is still showing signs of improvement. This gives us confidence when entering the second half of the year.”