First quarter profit boost for Konecranes
Finish marine and industrial crane manufacturer Konecranes has reported a strong upturn in profitability.
Total revenues for the first quarter were 8.5 percent lower at €704 million, while pre-tax profits increased 66 percent to €26.6 million. Order intake improved 3.5 percent to €762.8 million, leaving the order book 4.8 percent lower at €1.87 billion.
Chief executive Rob Smith said: “Konecranes delivered a strong start to 2021. High performance and improved business excellence across the whole organisation resulted in an all-time high EBITA margin of eight percent, our third consecutive quarter of record breaking profitability. Strong first quarter orders, together with ongoing excellent execution and traction from strategic initiatives, give us a solid foundation for the whole year’s performance.”
“While Covid-19 related market volatility is not over, overall market sentiment continued to improve in Q1 compared to the previous quarters. Activity remained high in the port sector and also improved with our industrial customers. As a result, order intake grew 6.3 percent year on year in comparable currencies and in all three business areas orders received were flat to higher versus a year ago. Boding well for the full year, we saw good order growth especially in our short cycle products.”
“Our announced merger with Cargotec is progressing to plan with merger control filings underway. Together with Cargotec we will create a global leader in sustainable material flow. The merger is fully aligned with our strategic plans and growth ambitions, and is expected to take place on 1 January 2022, given all conditions and approvals for completion are fulfilled. Until then, both companies will operate fully separately and independently.”
“Although the pandemic continues, Konecranes has a rock-solid foundation for growth and future success. We maintain our clear strategic focus and our commitment to business excellence, high performance and sustainability. Q1 and the previous quarters have positioned Konecranes well for the future, and we will emerge from the pandemic strong and at new levels of capability and achievement.”