 Pekka Lundmark |
Forklifts were a significant contributor to Konecranes' improved performance in the second quarter, contributing to an operating profit of EUR25.7 million (USD 28.13 million), up from EUR21.6 million (USD23.65 million) for the same period last year.
President and CEO Pekka Lundmark says overall performance in the second quarter of 2015 was largely in line with expectations.
"Service continued on its steady profit improvement path, and the full-year outlook for the business remains promising. Equipment business recovered after a loss-making first quarter, but the result is still below target. Lifttruck business continued to be the best performing equipment business, with both volumes and profit increasing steadily."
Lundmark says after a weaker first quarter, group operating profit, excluding restructuring costs, exceeded that of last year. "We are now cumulatively EUR2.7 million (USD2.96 million) above last year. This supports our forecast to deliver a higher full-year operating profit, excluding restructuring costs, than last year."
Konecranes says orders from European industrial customers increased in the second quarter, but customers are still cautious about investing. In the US, the offer base for industrial customers remains stable, but customers' decision-making has become slower and there are fewer large-contract opportunities available. The near-term market outlook in emerging markets remains uncertain, according to the financial report.
Based on the order book, service contract base and the near-term demand outlook, the year 2015 sales are expected to be higher than in 2014. Konecranes expects the 2015 operating profit, excluding restructuring costs, to improve compared to 2014.
Lundmark adds: "Konecranes is today a very different company than 10 years ago. Nevertheless, there is still so much to do.
"The materials handling equipment and service market are still fragmented, and there are a lot of growth and consolidation opportunities, even in a scenario where the world economy would not drive any market growth."