Konecranes Reports Strong 2010 Results Despite Lower Turnover

Finnish industrial machinery company Konecranes Oyj reported strong financial results for the fiscal year 2010 in February 2011, with a notable increase in orders and improved profitability, particularly in the fourth quarter.

During the fourth quarter, the company's order intake rose by 32.3 percent to 477.7 million euros, with both service and equipment orders showing significant growth. Net sales increased by 9.5 percent to 469.4 million euros. Operating profit reached 45.8 million euros, a substantial improvement from the previous year, and earnings per share were 0.55 euros.

For the full year 2010, net sales decreased by 7.5 percent to 1,546.3 million euros. However, the order backlog grew by 13.9 percent to 1,536.0 million euros. Operating profit, including restructuring costs, stood at 112.4 million euros, with earnings per share at 1.34 euros. The company's board proposed a dividend of 1.00 euro per share.

Demand for service operations was expected to remain above the previous year's levels, driven by higher customer utilization rates. Demand for new equipment was projected to continue growing, especially in Asia-Pacific and other growth markets. Customers in Western Europe and North America were also anticipated to gradually increase investments in new equipment.

Konecranes projected that both net sales and operating profit for 2011 would exceed the levels reported for 2010.