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Konecranes releases half-year financial report: January/June 2020
July 27, 2020 By Konecranes
The report does not include figures for MHE-Demag as the acquisition of MHE-Demag was completed in January 2020. The combined operations of Konecranes and MHE-Demag started on January 2, 2020. Figures in brackets, unless otherwise stated, refer to the same period a year earlier.
Second quarter highlights
- Order intake EUR 581.5 million (822.7), -29.3 percent (-28.9 percent on a comparable currency basis), orders declined in all Business Areas. Excluding MHE-Demag, order intake declined 32.1 percent.
- Service annual agreement base value increased 11.2 percent (+12.5 percent in comparable currencies) to EUR 282.9 million (254.4). Service order intake was EUR 209.1 million (253.2), -17.4 percent (-16.7 percent on a comparable currency basis). Excluding MHE-Demag, the annual agreement base value increased 6.3 percent while order intake in Service declined 21.8 percent
- Order book EUR 1,904.5 million (1,967.8) at the end of June, -3.2 percent (-2.7 percent on a comparable currency basis). Excluding MHE-Demag, the order book declined 10.0 percent
- Sales EUR 704.7 million (794.0), -11.3 percent (-10.7 percent on a comparable currency basis), sales declined in all Business Areas. Excluding MHE-Demag, sales declined 14.7 percent
- Adjusted EBITA margin 8.2 percent (8.4) and adjusted EBITA EUR 57.5 million (67.0); successful demand-supply balancing, cost flexing as well as progress on strategic initiatives almost offset the sales driven decline in the Group’s adjusted EBITA
- Operating profit EUR 42.7 million (38.0), 6.1 percent of sales (4.8)
- Earnings per share (diluted) EUR 0.38 (0.25)
January-June 2020 highlights
- Order intake EUR 1,318.5 million (1,670.8), -21.1 percent (-21.0 percent on a comparable currency basis)
- Service order intake EUR 475.2 million (508.7), -6.6 percent (-6.6 percent on a comparable currency basis)
- Sales EUR 1,474.2 million (1,552.3), -5.0 percent (-4.8 percent on a comparable currency basis)
- Adjusted EBITA margin 5.3 percent (7.4) and adjusted EBITA EUR 78.6 million (115.4); the adjusted EBITA margin decreased in all three Business Areas
- Operating profit EUR 50.5 million (65.3), 3.4 percent of sales (4.2), restructuring costs totaling EUR 10.1 million (37.8)
- Earnings per share (diluted) EUR 0.53 (0.42)
- Free cash flow EUR 107.5 million (34.5)
- Net debt EUR 770.2 million (743.5) and gearing 62.8 percent (60.5)
Demand outlook
The worldwide demand picture remains subject to significant volatility due to the COVID-19 pandemic. The current demand environment within the industrial customer segments is showing signs of improvement in Europe and North America compared to Q2; yet remaining below the year-end 2019 level. At the moment, the demand environment in Europe is overall less volatile compared to North America. While China’s demand conditions have improved from early 2020, demand environment in the rest of Asia-Pacific is weak.
Global container throughput has declined and many port operators are postponing decision-making in the current environment. However, long-term prospects related to container handling remain good overall.
Financial Guidance
Based on the current order book and demand environment, Konecranes expects the full-year 2020 net sales to decrease from the previous year. Konecranes expects the full-year 2020 adjusted EBITA margin to decrease compared to the previous year.
Key figures
| Second quarter | January – June | |||||||
| 4-6 /2020 |
4-6 /2019 |
Change % |
1-6 /2020 |
1-6 /2019 |
Change % |
R12M | 1-12 /2019 |
|
| Orders received, MEUR | 581.5 | 822.7 | -29.3 | 1,318.5 | 1,670.8 | -21.1 | 2,815.1 | 3,167.3 |
| Order book at end of period, MEUR | 1,904.5 | 1,967.8 | -3.2 | 1,824.3 | ||||
| Sales total, MEUR | 704.7 | 794.0 | -11.3 | 1,474.2 | 1,552.3 | -5.0 | 3,248.8 | 3,326.9 |
| Adjusted EBITDA, MEUR 1 | 83.0 | 92.6 | -10.3 | 129.0 | 164.7 | -21.6 | 337.5 | 373.2 |
| Adjusted EBITDA, % 1 | 11.8% | 11.7% | 8.8% | 10.6% | 10.4% | 11.2% | ||
| Adjusted EBITA, MEUR 2 | 57.5 | 67.0 | -14.2 | 78.6 | 115.4 | -31.9 | 238.3 | 275.1 |
| Adjusted EBITA, % 2 | 8.2% | 8.4% | 5.3% | 7.4% | 7.3% | 8.3% | ||
| Adjusted operating profit, MEUR 1 | 48.5 | 60.9 | -20.3 | 60.6 | 103.0 | -41.2 | 207.9 | 250.4 |
| Adjusted operating margin, % 1 | 6.9% | 7.7% | 4.1% | 6.6% | 6.4% | 7.5% | ||
| Operating profit, MEUR | 42.7 | 38.0 | 12.4 | 50.5 | 65.3 | -22.7 | 133.9 | 148.7 |
| Operating margin, % | 6.1% | 4.8% | 3.4% | 4.2% | 4.1% | 4.5% | ||
| Profit before taxes, MEUR | 42.4 | 27.9 | 51.8 | 58.5 | 46.2 | 26.6 | 130.8 | 118.5 |
| Net profit for the period, MEUR | 30.3 | 20.1 | 50.8 | 41.8 | 33.3 | 25.7 | 91.3 | 82.8 |
| Earnings per share, basic, EUR | 0.38 | 0.25 | 54.9 | 0.53 | 0.42 | 26.5 | 1.14 | 1.03 |
| Earnings per share, diluted, EUR | 0.38 | 0.25 | 54.9 | 0.53 | 0.42 | 26.5 | 1.14 | 1.03 |
| Interest-bearing net debt / Equity, % | 62.8% | 60.5% | 52.6% | |||||
| Net debt / Adjusted EBITDA, R12M 1 | 2.3 | 2.0 | 1.8 | |||||
| Return on capital employed, % | 6.5% | 6.3% | ||||||
| Adjusted return on capital employed, % 3 | 10.2% | 12.7% | ||||||
| Free cash flow, MEUR | 53.7 | 6.5 | 107.5 | 34.5 | 221.5 | 148.5 | ||
| Average number of personnel during the period | 17,105 | 16,035 | 6.7 | 16,104 | ||||
1) Excluding adjustments, see also note 11 in the summary financial statements
2) Excluding adjustments and purchase price allocation amortization, see also note 11 in the summary financial statements
3) ROCE excluding adjustments, see also note 11 in the summary financial statements
Next report
Konecranes plans to publish Interim Report January-September 2020 on October 28, 2020.
To view the entire report visit, konecranes.com
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