Continuing difficult markets, increasing price competition, currency movements and particularly slow sales saw KCI Konecranes Group's first quarter sales drop 5.1 percent from EUR158.9 million (USD183.4 million) last year to EUR150.8 million (USD174 million).

The sales trend was downward in all business areas, the group's report for the quarter, ending March 31, said. Standard lifting dropped 13.1 percent from EUR48 million (USD55.4 million) to EUR41.7 million (USD48.1 million).

Special cranes sales dropped 7.6 percent from EUR47.2 million (USD54.4 million) to EUR43.6 million (USD50.3 million), despite increased new orders of EUR41 million (USD47.3 million), up 17.8 percent from the first quarter of 2002 and 35 percent more than the fourth quarter 2002 result.

"Taken by region, the order intake remained strong in China, turned to a clear growth in Germany and remained at the previous year's level in America. Compared to Q4/02, the order intake grew by 13.1% and all business areas showed growth," the report said.

Group chief executive Stig Gustavson said earnings were reminiscent of the seasonal fluctuations experienced in the 1990s, which saw poor results early in the year, but excellent results at the end.

"The result level of 2002 is still within reach for the current year, in spite of the disappointing beginning," Mr Gustavson said.

"Challenging markets also mean opportunity for (us). As one of the strongest and fittest companies in the industry, we have ample opportunity of advancing our position in many markets."