KCI KONECRANES PLC STOCK EXCHANGE RELEASE 10 May, 2006 10.00 a.m. 1 (14)
KCI Konecranes Interim Report January - March, 2006
KCI KONECRANES REPORTS STRONG VOLUME GROWTH AND CLEAR MARGIN IMPROVEMENT
First quarter orders again set a new record: 332.7 MEUR (growth 53.0 %, organic
34.9 %)
Sales all-time high: 296.7 MEUR (growth 54.0 %, organic 36.7 %)
First quarter operating profit (EBIT) 14.0 MEUR (4.9 MEUR)
EBIT margin improved to 4.7 % (2.5 %)
Net income was 8.3 MEUR (-1.3 MEUR) and earnings per share 0.15 euro (-0.02 euro)
Net cash flow per share 0.46 EUR (0.05 EUR)
Full year sales now expected to grow with over 25 %
First quarter LTM LY
MEUR 1-3/ 1-3/ Change 4/05-3/ 1-12/
SALES 06 05 % 06 05
Maintenance Services 102.7 86.2 19.2 423.0 406.5
Standard Lifting Equipment 118.0 64.0 84.3 372.0 318.0
Special Cranes 98.4 61.3 60.5 368.1 331.1
Internal Sales -22.4 -18.9 18.5 -88.3 -84.8
Sales total 296.7 192.7 54.0 1074.9 970.8
Operating profit (EBIT) 14.0 4.9 185.8 58.4 49.3
Share of result of associated
companies and joint ventures -0.1 0.0 0.4 0.5
Interests, net -2.3 -1.5 -7.7 -6.8
Other financial income and
expenses 0.3 -5.3 -3.4 -9.0
Income before taxes 11.9 -1.9 743.4 47.8 34.1
Net income 8.3 -1.3 719.8 33.8 24.1
Earnings per share, basic (EUR) 0.15 -0.02 0.59 0.43
Earnings per share, diluted 0.14 -0.02 0.59 0.42
(EUR)
ORDERS RECEIVED
Maintenance Services 96.7 78.5 23.2 382.7 364.5
Standard Lifting Equipment 146.7 75.9 93.4 393.0 322.1
Special Cranes 115.1 79.3 45.2 499.2 463.3
Internal Orders -25.9 -16.2 59.2 -98.3 -88.7
Orders Received total 332.7 217.4 53.0 1175.5 1061.2
Order book at end of period 510.8 351.1 45.5 - 432.1
Comment on first quarter result:
The strong volume development continued both in Maintenance Services and new
equipment sales. Sales in the Americas grew 62 %, in Asia-Pacific 57 %, Nordic
and Eastern Europe 36 %, and in the European Union (excluding the Nordic
countries, boosted by newly acquired Stahl CraneSystems) 56 %. The 36 % organic
sales growth indicates improving market shares.
The order intake growth was strong in all regions, giving a one quarter all-time
high order intake and an increased confidence for the future. The strongest
demand growth was seen in primary metals and harbour sectors. General
manufacturing also had a good orders growth, and retained its position as the
largest customer segment. As expected, operating margins improved in all
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business areas. Stahl CraneSystems performed well, with growing orders and
margins in line with expectations. On a strong cash flow, the gearing number fell
to 79.3 %.
Comment on full year 2006 result:
The demand is expected to stay on a good level. KCI Konecranes now expects that
full year 2006 sales growth will exceed 25 %. However, the company finds no
reason to change its earlier guidance for the full year operating margin. In
contrast to the pattern of previous years, KCI Konecranes now expects the year
2006 operating profit generation to be more evenly distributed between the four
quarters.
Pekka Lundmark, President & CEO:
"We are quite pleased with the first quarter development. Our growth is well
balanced across our business areas and geographical regions. Especially pleasing
is, however, that our efficiency programs are now also delivering improving
margins. We now report improving operating margins in all business areas.
Maintenance services operating margin was 1.2 %-points higher compared to the
level one year ago. Special cranes margin is recovering from the unsatisfactory
levels seen during the first half of 2005. Also Standard Lifting Equipment margin
improved, from 7.7 % to 8.5 %, despite the dilution caused by the Stahl
CraneSystems acquisition. While we have been focusing on margin improvement, and
will continue to do so, we have been able to retain our capital efficiency. The
combination of improving margins and good capital management boosted our twelve-
month rolling return on capital employed to 20.6 %, while it was 17.2 % in the
year 2005.
At the same time when the demand for new crane equipment is on a very high level,
we have continued to invest in growth in Maintenance Services. We have now over
245,000 cranes and hoists under maintenance, and services are offered at more
than 330 locations worldwide. This expansion will continue, both in terms of
geographical reach and through offering new high value-added service concepts
designed to improve our customers' productivity. The current high level of new
equipment sales creates important business opportunities for Maintenance Services
in the future. Maintenance Services will continue to be our organic growth motor,
regardless of the level of new equipment investments.
This is our first interim report where also Stahl CraneSystems is included. The
development of the acquired business has been very encouraging. The orders growth
has accelerated during the first three months after the ownership change, and the
margins have met our expectations. We also have a very motivated team of people
at Stahl CraneSystems. Germany is by far the largest crane market in Europe. The
role of the German crane customers, whether operating in Germany or elsewhere, is
very important when crane and crane service market shares are determined. Stahl
CraneSystems, with its respected, high-quality German brand, will be a key
element in our strategy towards continuously improving market shares."
Orders received and markets
The strong order intake continued in January - March 2006. The Group's total
orders received reached a record level of EUR 332.7 (217.4) million. The growth
was 53.0 % (+48 % at comparable exchange rates) and the organic growth 34.9 %.
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Orders received by Business Areas, MEUR
1-3/2006 1-3/2005 Change %
Maintenance Services 96.7 78.5 +23.2
Standard Lifting Equipment 146.7 75.9 +93.4
Special Cranes 115.1 79.3 +45.2
Internal -25.9 -16.2
Group total 332.7 217.4 +53.0
The order intake grew strongly in all business areas. The fastest growth was
recorded in Standard Lifting with an organic growth at 41.2 % and a total growth
including recent acquisition Stahl CraneSystems, at 93.4 %. Special Cranes
recorded its fourth consecutive quarter with orders received of over EUR 100
million. In Maintenance Services orders grew both in field service operations and
in modernisations. The value of the annual contract base is omitted from the
order intake number in Maintenance Services.
By geography market sentiments remained strong in the Americas, Eastern Europe
and Asia-Pacific, but there was a positive development also in the Nordic
countries and in Central Europe.
The demand within the container handling industry and the general manufacturing
industry remained strong. There were signs of accelerating growth in power
station (including waste-to-energy plant) investments. The primary metals and
mining sector remained buoyant, but slightly less than last year. Capital
expenditure in the pulp and paper industry and in the automotive industry was
low.
Order book and Contract base
The Group's order book totalled EUR 510.8 (351.1) million at the end of March
2006 and posted a growth at 45.5 % (+41 % at comparable currency exchange rates).
The Order book grew in all business areas.
Order book by Business Areas, MEUR
1-3/2006 1-3/2005 Change %
Maintenance Services 82.9 80.8 +2.6
Standard Lifting 138.8 80.8 +71.8
Equipment
Special Cranes 342.1 203.8 +67.9
Internal -53.0 -14.3
Group total 510.8 351.1 +45.5
The contract base development in Maintenance Services was positive both in terms
of unit quantity and value. At the end of March 2006 there were 245.814 (236.809)
cranes and hoists included in the annual maintenance contract base. The value
growth outpaced the volume growth.
Sales
Group total sales for January - March 2006 totalled EUR 296.7 (192.7) million.
The sales growth was 54.0 % (+49 % at comparable currency exchange rates) and the
organic growth 36.7 %.
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Sales by Business Areas, MEUR:
1-3/2006 1-3/2005 Change %
Maintenance Services 102.7 86.2 +19.2
Standard Lifting Equipment 118.0 64.0 +84.3
Special Cranes 98.4 61.3 +60.5
Internal -22.4 -18.9
Group total 296.7 192.7 +54.0
The strong sales growth continued in all business areas. The fastest growth was
recorded in Standard Lifting, further boosted by the acquisition of Stahl
CraneSystems acquisition. The organic sales growth in Standard Lifting was 32.3
%.
The strong growth continued in all of the Group's major markets.
Profitability
The Group's operating income for January - March 2006 was EUR 14.0 (4.9) million
which is an increase of EUR 9.1 million or 185.8 % compared to January - March
2005. The operating income margin was 4.7 (2.5) %.
Operating income by Business Areas, MEUR:
1-3/2006 % of 1-3/2005 % of
sales sales
Maintenance Services 6.7 6.5 4.6 5.3
Standard Lifting Equipment 10.0 8.5 4.9 7.7
Special Cranes 5.6 5.7 1.3 2.2
./. Group overheads -7.4 -2.5 -6.0 -3.1
./. Elimination of internal
profit -0.8 -0.3 0.0 0.0
Group total 14.0 4.8 4.9 2.5
The margin development was positive in all business areas. Growth, positive
results of restructuring measures (especially relating to Special Cranes) and
improved US dollar/euro exchange rate were the main drivers for the improved
profitability. The profitability in the acquired Stahl CraneSystems operations
was as expected. The acquired operations contributed positively to operating
income in Standard Lifting Equipment.
Financial costs (the net of expenses and income) were EUR 2.0 (6.8) million. The
corresponding figure for January - March 2005 included a loss arising from a
change in fair value of approx. EUR 4.7 million on hedging derivatives. At this
time last year the Group did not apply hedge accounting on forward contracts for
cash flow hedging in Special Crane projects.
The Group's income before taxes was EUR 11.9 (-1.9) million. Income taxes based
on an estimated 30 % tax rate were EUR 3.6 (+0.5) million.
Net income for the period was EUR 8.3 (-1.3) million and earnings per share were
EUR 0.15 (-0.02).
The return on capital employed was 18.3 (8.4) %. Counted on a last twelve months'
basis, the return on capital employed was 24.3 (15.6) %. The return on equity for
January - March 2006 was 21.7 (-4.1) %. The positive development relates to an
improved profitability and a sustained efficiency in capital utilisation.
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The profit accumulation in the Group has never been equal between different
quarters. Typically, profit generation has been slow in the beginning of the year
and has then accelerated towards the yearend. This seasonal earnings pattern is
expected to be less pronounced during the current year compared to previous
years.
Cash flow and balance sheet
The cash flow from operations before financing items and taxes for January -
March 2006 was EUR 31.2 (6.9) million. The cash flow remained strong in spite of
the fast growth.
The net cash flow from operating activities was EUR 26.6 (2.8) million.
The total interest bearing debt at the end of March 2006 was EUR 162.7 (148.2)
million and the interest bearing net debt EUR 122.7 (126.1) million accordingly.
A total of EUR 15.8 (14.8) million was paid as dividends was made during the
period.
The net gearing at the end of the period was 79.3 (102.5) % and the solidity
ratio 24.5 (26.4) %.
The Group retains a EUR 200 million committed credit facility for securing its
running liquidity. At the end of March 2006 EUR 23.3 (0.0) million of that
facility was in use.
Capital expenditure
The Group's capital expenditure for January - March 2006 totalled EUR 3.1 (1.8)
million. Investments related mainly to information technology and efficiency
improvement programmes.
Personnel
At the end of March 2006 the Group had a total of
6125 (4992) employees.
Personnel by Business Areas:
1-3/2006 1-3/2005 Change %
Maintenance Services 3042 2816 +8.0
Standard Lifting Equipment 2047 1224 +67.2
Special Cranes 898 830 +8.2
Group 138 122 +13.1
Group total 6125 4992 +22.7
The growth in personnel related mainly to the organic growth, the acquisition of
Stahl CraneSystems(in Standard Lifting) and to the Group's expanding Chinese
operations.
Important events
The ordinary Annual General Meeting (AGM) on March 8, 2006 confirmed a dividend
EUR 1.10 (1.05) to be paid on each of the 14.390.380 shares (before the share
split). The dividend was paid out on March 20, 2006.
The number of Board members was confirmed at seven. The AGM re-elected Mr Svante
Adde, Mr Stig Gustavson, Mr Matti Kavetvuo, Ms Malin Persson, Mr Timo Poranen,
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Mr Björn Savén and Mr Stig Stendahl as members of the KCI Konecranes Board of
Directors.
In its first meeting the Board of Directors re-elected Mr Stig Gustavson as its
Chairman and Mr Björn Savén as its vice-chairman.
The AGM elected Ernst & Young Oy as the Company's external auditor for the
financial year 2006.
In order to improve the company's share liquidity, the AGM adopted the Board's
proposal to quadruple the number of shares from 14,601,030 to 58,404,120 by a
share split without increasing the share capital. Trading with the splitted share
commenced on March 20, 2006.
The AGM adopted the Board's proposal to authorize the Board of Directors to
repurchase the Company's own shares and to dispose of the repurchased shares. The
authorization is limited to a maximum of 5,840,412 shares (after the share split)
corresponding a maximum of 10 per cent of the share capital of the Company and of
the voting rights of all shares.
In order to increase its production capacity and manufacturing flexibility the
Group decided to invest in a new assembly line and logistic center for the
manufacture of container reach stackers and forklifts in Shanghai, China. The
estimated total investment is EUR 2.5 million and the operation will initially
employ approx. 30 persons. Pilot operations started during the quarter in the
Group's present facilities in Shanghai.
The Group now owns three operating plants in China.
Litigations
The lawsuit filed by Morris Material Handling, Inc. against the company in the
United States Court, Eastern District of Wisconsin, still continues. A court
decision is likely to be issued during the third quarter in 2006. The Company
does not at the moment have reason to expect the case to have a material effect
but the company has regularly commented on the case as the lawsuit has been
commented in the public.
Shares and shareholders
Change in share capital and subscription of shares with stock options
Pursuant to KCI Konecranes stock options, a total of 286 700 new KCI Konecranes
shares (before share split) were recorded in the Trade Register during Q1/2006.
Following these subscriptions KCI Konecranes' share capital at the end of March
was EUR 29 545 460 and the total number of shares (after share split) was 59 090
920.
Shares and trading volume
KCI Konecranes Plc's share price increased by 36.47 % during the reporting period
and closed at EUR 14.20. The period high was EUR 14.50 and period low EUR 10.23.
The volume weighted average share price during the period was EUR 12.93. During
the same period the OMX Helsinki Index increased by 15.16 %, the OMX Helsinki CAP
Index by 17.01 % and the OMX Helsinki Industrials Index by 18.26 %.
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At the end of March KCI Konecranes Plc's total market capitalisation was EUR 840
million including the company's own shares, the 37th largest market value of
companies listed on the Helsinki Stock Exchange.
The trading volume totaled 33 812 173 shares of KCI Konecranes Plc, which
represents 57.22 % of the company's total amount of outstanding shares. In
monetary terms trading was EUR 422 million, which was the 24th largest trading
value of companies listed on Helsinki Stock Exchange. The daily average trading
volume was 180,013 shares representing a daily average turnover of EUR 6.60
million.
Flagging notifications
On March 29, 2006 the holdings of Fidelity International Limited and its direct
and indirect subsidiaries had decreased to 5.00 % of the share capital and voting
rights of KCI Konecranes Plc.
On March 2, 2006 the holdings of Fidelity International Limited and its direct
and indirect subsidiaries had increased to 5.16 percent of the share capital and
voting rights of KCI Konecranes Plc.
On 24 February, 2006 the holdings of Deutsche Bank AG, and its subsidiary
companies' had increased to 5.57 percent of KCI Konecranes' total amount of
shares.
On February 23, 2006 the holdings of Centaurus Capital Limited and its direct and
indirect subsidiaries had decreased to 2.32 percent of the share capital and
voting rights of KCI Konecranes Plc.
Orkla ASA's holding on February 13, 2006 had decreased to 4.71 percent of the
share capital and voting rights of KCI Konecranes Plc.
The Company's own shares
At the end of March, KCI Konecranes Plc held 842,600 of the company's own shares.
This corresponds to 1,43 % of the company's total outstanding shares and votes.
The shares were bought back between February 20 and March 5, 2003.
Future prospects
The demand is expected to stay on a good level. KCI Konecranes now expects that
full year 2006 sales growth will exceed 25 %. However, the company finds no
reason to change its earlier guidance for the full year operating margin. In
contrast to the pattern of previous years, KCI Konecranes now expects the year
2006 operating profit generation to be more evenly distributed between the four
quarters.
Disclaimer
Certain statements in this report, which are not historical fact, including,
without limitation those regarding expectations for market growth and
developments, expectations for growth and profitability and statements preceded
by "believes", "expects", "anticipates", "foresees" or similar expressions, are
forward-looking statements. Therefore they involve risks and uncertainties, which
may cause actual results to materially differ from the results expressed in such
forward-looking statements. Such factors include but are not limited to the
company's own operating factors, industry conditions and general economic
conditions.
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Important orders
Here are some examples on orders received during January-March 2006. The list
illustrates our reach, both in terms of customer base and geographical coverage.
Metso Paper, Brazil ordered a 100T capacity process crane to be used for
installation and maintenance work of the world's highest capacity pulp drying
line, which Metso is supplying to Suzano Bahia Sul Papel e Celulose S.A..
Papierfabrik Palm GmbH & co KG from Wörth, Germany ordered two paper mill cranes
for their biggest automatic paper roll storage.
Nine Dragons Paper Industries (Taicang) Co. Ltd from China ordered two sets of
Automatic Roll Storage Crane Systems.
Bhushan Steel & Strips Ltd, one of India's leading steel producers, ordered four
hot metal ladle cranes.
Metso Foundries Karlstad AB ordered a tailor made process crane for ladle
handling in their Karlstad foundry in Sweden.
Siemens AG of Offenbach Germany has ordered two special cranes for the New
Taweelah Power Station expansion in the UAE. The order includes also five CXT
industrial cranes and two Jib cranes.
SSAB Oxelösund from Sweden ordered two SM maintenance cranes for their
production.
KMW Energi Ab ordered one fully automated grapple crane to the Arsta Norrtälje
Bio Power plant and to the Älvsbyn Bio Power plant in Sweden.
MHI Takasago Works placed significant orders for three power plant projects. In
total nine powerhouse cranes will be delivered to the projects Shin Nagoya, South
Bangkok and Ratchaburi in Thailand.
Oshima Shipbuilding Co., Ltd called its option to order four additional 70-ton
Shipboard Gantry Cranes (Konecranes-Munckloaders) to be installed onboard two
55.000 DWT vessels ordered by Singaporean shipowner Masterbulk Pte. Ltd.
KCI Konecranes received one of its largest individual orders for RTG cranes from
APM Terminals who ordered a total of 18 new units for their terminals in North
America.
Dragados S.P.L. ordered 12 RTG cranes for Terminales del Sudeste in Malaga.
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The presented Financial information is construed according to the recognition and
measurement rules of International Financial Reporting Standards (IFRS).
The figures presented in the tables below have been rounded to one decimal, which
should be taken into account when reading the sum figures.
The interim report has not been subject to audit.
CONSOLIDATED STATEMENT OF INCOME - IFRS
1-3/2006 1-3/2005 1-12/2005
MEUR MEUR MEUR
Sales 296.7 192.7 970.8
Other operating income 0.8 0.2 2.2
Depreciation -4.7 -3.6 -15.6
Other operating expenses -278.8 -184.4 -908.1
Operating income (EBIT) 14.0 4.9 49.3
Share of result of associates and
joint ventures -0.1 0.0 0.5
Financial income and expenses -2.0 -6.8 -15.8
Profit before taxes 11.9 -1.9 34.1
Taxes -3.6(1 0.5(1 -10.0
Net Income 8.3 -1.3 24.1
Earnings per share, basic (EUR) 0.15 -0.02 0.43
Earnings per share, diluted (EUR) 0.14 -0.02 0.42
1) According to estimated tax rate
CONSOLIDATED BALANCE SHEET - IFRS
3/2006 3/2005 12/2005
MEUR MEUR MEUR
Non-current assets 191.7 124.4 197.6
Inventories 177.3 135.1 157.0
Receivables and other current assets 313.5 240.5 325.4
Cash and cash equivalents 39.4 21.6 44.0
Total assets 721.9 521.6 724.0
Equity 154.7 123.1 152.1
Non-current liabilities 102.2 26.2 106.9
Provisions 20.5 16.6 20.1
Current liabilities 444.5 355.7 444.9
Total equity and liabilities 721.9 521.6 724.0
Gearing % 79.3 102.5 88.1
Solidity % 24.5 26.4 23.7
Return on capital employed %,
Last Twelve Months (LTM) 20.6 15.6 17.2
Return on equity %,
Last Twelve Months (LTM) 24.3 13.0 16.6
Equity/share, EUR 2.66 2.18 2.66
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STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY (MEUR)
Share Other Transl. Fair Retained Min. Total
Cap. Restr. Differ. value Earnings Inter. Equity
Capital Reserves
Equity
12/2004 28.6 22.3 -6.1 0.0 92.7 0.1 137.6
Options
exercised
Dividend
distribution -14.8 -14.8
Change in
untaxed
reserves 0.4 0.4
Cash flow
hedge
Translation
difference 1.0 1.0
Share based
payments
recognized
against
equity 0.2 0.2
Net profit
for the
period -1.3 -1.3
Equity
3/2005 28.6 22.3 -5.1 0.0 77.2 0.1 123.1
Equity
12/2005 29.0 26.5 -1.2 -4.9 102.7 0.1 152.1
Options
exercised 0.6 6.7 7.3
Dividend
distribution -15.8 -15.8
Change in
untaxed
reserves 0.1 0.1
Cash flow
hedge 2.9 2.9
Translation
difference -0.5 -0.5
Share based
payments
recognized
against
equity 0.2 0.2
Net profit
for the
period 8.3 8.3
Equity
3/2006 29.6 33.3 -1.7 -2.0 95.5 0.1 154.7
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CONSOLIDATED CASH FLOW STATEMENT - IFRS (MEUR)
1-3/2006 1-3/2005 1-12/2005
Operating income before chg in net
working capital 18.9 8.7 65.8
Change in net working capital 12.3 -1.8 0.7
Cash flow from operations before
financing items and taxes 31.2 6.9 66.5
Financing items and taxes -4.6 -4.1 -18.1
Net cash flow from operating 26.6 2.8 48.4
activities
Net cash used in investing activities -3.1 -3.3 -46.1
Cash flow before financing activities 23.5 -0.5 2.3
Net cash used in financing activities -28.0 1.0 19.7
Translation differences in cash -0.2 0.4 1.3
Change of cash and cash equivalents -4.6 0.9 23.3
Cash and cash equivalents at
beginning of period 44.0 20.7 20.7
Cash and cash equivalents at end
of 39.4 21.6 44.0
period
Change of cash and cash equivalents -4.6 0.9 23.3
SEGMENT REPORTING
1. BUSINESS SEGMENTS (MEUR)
Order Intake by 1-3/2006 1-3/2005 LTM* 1-12/2005
Business Area
Maintenance Services 96.7(1 78.5 382.7 364.5
Standard Lifting Equipment 146.7 75.9 393.0 322.1
Special Cranes 115.1 79.3 499.2 463.3
./. Internal -25.9 -16.2 -98.3 -88.7
Total 332.7(1 217.4 1175.5 1061.2
1) Excl. Service Contract Base
*) LTM = last 12 months (full year 2005 ./. three months 2005 + three months
2006)
Order Book total (2 3/2006 3/2005 12/2005
Total 510.8 351.1 432.1
2) Percentage of completion deducted
Sales by Business Area 1-3/2006 1-3/2005 LTM* 1-12/2005
Maintenance Services 102.7 86.2 423.0 406.5
Standard Lifting Equipment 118.0 64.0 372.0 318.0
Special Cranes 98.4 61.3 368.1 331.1
./. Internal -22.4 -18.9 -88.3 -84.8
Total 296.7 192.7 1074.9 970.8
*) LTM = last 12 months (full year 2005 ./. three months 2005 + three months
2006)
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Operating Income by 1-3/2006 1-3/2005 1-12/2005 LTM*
Business Area
MEUR % MEUR % MEUR % MEUR
Maintenance Services 6.7 6.5 4.6 5.3 29.4 7.2 31.4
Standard Lifting
Equipment 10.0 8.5 4.9 7.7 28.8 9.1 33.9
Special Cranes 5.6 5.7 1.3 2.2 15.2 4.6 19.4
Group costs -7.4 -6.0 -23.8 -25.2
Consolidation items -0.8 0.0 -0.3 -1.1
Total 14.0 4.9 49.3 58.5
*) LTM = last 12 months (full year 2005 ./. three months 2005 + three months
2006)
Personnel by Business Area 3/2006 3/2005 12/2005
(at the End of the Period)
Maintenance Services 3,042 2,816 2,999
Standard Lifting Equipment 2,047 1,224 1,898
Special Cranes 898 830 890
Group staff 138 122 136
Total 6,125 4,992 5,923
Average number of personnel
during period 6,024 4,752 5,087
2. GEOGRAPHICAL SEGMENTS (MEUR)
Sales by Market 1-3/2006 1-3/2005 LTM* 1-12/2005
Nordic and Eastern Europe 51.4 37.9 228.6 215.1
EU (excl. Nordic) 102.9 66.0 337.4 300.5
Americas 90.1 55.3 312.5 277.7
Asia-Pacific 52.4 33.5 196.3 177.4
Total 296.7 192.7 1074.9 970.8
*) LTM = last 12 months (full year 2005 ./. three months 2005 + three months
2006)
INVESTMENTS 1-3/2006 1-3/2005 1-12/2005
Total (excl. Acquisitions) 3.1 1.8 16.0
NET INTEREST BEARING LIABILITIES 3/2006 3/2005 12/2005
(MEUR)
Long- and short-term interest bearing
liabilities -162.7 -148.2 -178.4
Cash and cash equivalents and other
interest bearing assets 40.1 22.1 44.4
Total -122.6 -126.1 -133.9
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CONTINGENT LIABILITIES AND PLEDGED
ASSETS 3/2006 3/2005 12/2005
(MEUR)
Contingent Liabilities
For own debts
Mortgages on land and buildings 5.9 5.9 5.9
For own commercial obligations
Pledged assets 0.2 0.3 0.3
Guarantees 125.2 111.3 117.2
For associated company's debt
Guarantees 0.0 0.8 0.0
For others
Guarantees 0.0 0.1 0.0
Other contingent and financial
liabilities
Leasing liabilities 44.2 24.6 45.1
Other liabilities 0.7 1.2 0.7
Total 176.2 144.2 169.2
NOTIONAL AND FAIR
VALUES OF 3/2006 3/2006 3/2005 3/2005 12/2005 12/2005
DERIVATIVE Nominal Fair Nominal Fair Nominal Fair
FINANCIAL value value value value value value
INSTRUMENTS (MEUR)
Foreign exchange
forward contracts 260.6 -1.8 465.0 10.2 304.0 -8.9
Interest rate swap 0.0 0.0 25.0 0.6 0.0 0.0
Electricity
derivates 0.7 0.5 0.0 0.0 0.8 0.2
Total 261.3 -1.3 490.0 10.8 304.8 -8.7
Derivatives are used for hedging currency and interest rate risks as well as risk
of price fluctuation of electricity. Company applies hedge accounting on
derivatives used to hedge cash flows in special cranes projects.
Events on 10 May, 2006
Analyst and press briefing
A luncheon presentation for media and analysts will be held at Helsinki World
Trade Center, Marski Hall at 12.00 noon Finnish Time (address Aleksanterinkatu
17).
Live webcast
A live webcast of the presentation for analysts and media will begin at 12.00
noon Finnish Time and can be followed at www.konecranes.com/investor.
Internet
This report and graphic material is available on the Internet at
www.konecranes.com/investor immediately after publication. A recording from the
webcast presentation will be available on the Internet later on 10 May.
Next event
KCI Konecranes will arrange a Capital Markets Day for institutional investors,
analysts and media representatives on Wednesday 7 June 2006.
14 (14)
Next report
Interim Report, January - June 2006, will be published on 3 August, 2006.
Graphics
A graphical presentation of this report is available on the Internet at
www.konecranes.com/investor.
KCI KONECRANES PLC
Franciska Janzon
IR Manager
FURTHER INFORMATION
Mr Pekka Lundmark, President and CEO, tel. +358-20 427 2000
Mr Teuvo Rintamäki, Chief Financial Officer, tel. +358-20 427 2040,
Ms Franciska Janzon, IR Manager, tel. +358-20 427 2043
DISTRIBUTION
Helsinki Stock Exchange
Media
