Konecranes — Summary of 2019 Financial Statement and Other Developments
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Konecranes — Summary of 2019 Financial Statement and Other Developments

The Summary of Konecranes Plc’s Financial Statement Release 2019
(The complete report is attached to this release in pdf format and is also available on Konecranes’ website at www.konecranes.com)

Konecranes — Summary of 2019 Financial Statement  and Other Developments

Konecranes has applied IFRS 16 Leases standard since January 1, 2019. The figures for the comparison period in 2018 have not been restated. Please refer to note 4 for more details on the implementation of IFRS 16 standard and other significant accounting policies.

Figures in brackets, unless otherwise stated, refer to the same period a year earlier


-Order intake EUR 781.3 million (929.8), -16.0 percent (-16.9 percent on a comparable currency basis), driven by order decline in Business Areas Port Solutions and Industrial Equipment

-Service annual agreement base value increased 9.7 percent (+8.2 percent in comparable currencies) to EUR 267.7 million (243.9). Service order intake EUR 250.0 million (249.3), +0.3 percent (-1.2 percent on a comparable currency basis)

-Order book EUR 1,824.3 million (1,715.4) at the end of December, +6.3 percent (+5.6) percent on a comparable currency basis)

-Sales EUR 933.3 million (910.8), +2.5 percent (+1.5 percent on a comparable currency basis), growth in all Business Areas

- Adjusted EBITA margin 9.4 percent (9.4) and adjusted EBITA EUR 87.3 million (85.6); an increase in the adjusted EBITA margin in both Business Area Service and Business Area Ports Solutions offset by a decrease in Business Area Industrial Equipment, primarily due to costs related to certain process cranes projects

-Operating profit EUR 65.5 million (51.9), 7.0 percent of sales (5.7)

-Earnings per share (diluted) EUR 0.57 (0.50)


-Order intake EUR 3,167.3 million (3,090.3), +2.5 percent (+1.3 percent on a comparable currency basis)

-Service order intake EUR 1,015.1 million (986.5), +2.9 percent (+0.6 percent on a comparable currency basis)

-Sales EUR 3,326.9 million (3,156.1), +5.4 percent (+4.1 percent on a comparable currency basis), growth in all three Business Areas

-Adjusted EBITA margin 8.3 percent (8.1) and adjusted EBITA EUR 275.1 million (257.1), reflecting higher sales and synergy cost-savings

-Operating profit EUR 148.7 million (166.2), 4.5 percent of sales (5.3), restructuring costs totaling EUR 100.7 million (53.4)

-Earnings per share (diluted) EUR 1.03 (1.29)

-Free cash flow EUR 148.5 million (73.1)

-Net debt EUR 655.3 million (545.3) and gearing 52.6 percent (42.5), the impact of the implementation of the new IFRS 16 standard on net debt was approximately EUR 120 million at the end of December

-The Board of Directors proposes a dividend of EUR 1.20 (1.20) per share for 2019 to be paid in two equal installments


On December 5, 2019, Konecranes signed an agreement to acquire from Jebsen & Jensen its 50 percent stake in MHE-Demag. The transaction was closed on January 2, 2020. The share purchase price was approximately EUR 143 million in cash. Pursuant to the “Stock and asset purchase agreement” dated December 5, 2019, the final cash consideration is subject to post-closing adjustments for cash. After the acquisition, Konecranes holds 100 percent of the shares in the company, while Konecranes’ ownership before the acquisition was 50 percent.

MHE-Demag is a leading supplier of industrial cranes and services in Southeast Asia under the MHE and Demag brands, engineering, manufacturing and maintaining a comprehensive range of industrial cranes and hoists. Its customized solutions serve a wide range of industries and customers from general manufacturing to aerospace. MHE-Demag also provides warehousing equipment such as lift trucks and dock levelers, aerial work platforms, building maintenance units, and compact construction equipment, as well as automated car parking systems. With the acquisition, Konecranes increases its presence and market coverage in strategically important and fast-growing Southeast Asia.

Service represents approximately 50 percent of MHE-Demag’s annual net sales, with cranes and components at approximately 35 percent and other industrial products at approximately 15 percent. In 2018, MHE-Demag’s net sales were approximately SGD 285 million (EUR 179 million) and EBITA approximately SGD 20 million (EUR 13 million). Konecranes is the main supplier to MHE-Demag, selling crane components under the Demag brand name.

MHE-Demag has approximately 1,800 employees, including some 700 service engineers. MHE-Demag operates 11 factories and more than 70 service locations throughout Southeast Asia and is headquartered in Singapore. MHE-Demag runs its own operations in Australia, Indonesia, Malaysia, Singapore, the Philippines, Taiwan, Thailand, and Vietnam. In addition, MHE-Demag has distribution through resellers in several countries including Brunei, Cambodia, Laos, Mongolia, Myanmar, Papua New Guinea, and Timor-Leste.

Konecranes expects the acquisition to create approximately EUR 10 million of annual synergies at the EBITA level by 2022, including both revenue and cost synergies. One-time costs generated by the integration of MHE-Demag are estimated to a total of EUR 6 million.


Within the industrial customer segments, the demand environment in Europe continues to weaken but at a slower rate. The demand environment in North America is relatively stable overall and remains at a higher level compared to Europe. The Asia Pacific is showing early signs of improving demand conditions.

Despite its recent decline, global container throughput continues on a good level. Although there is hesitation in the decision-making among some port customers, the longer-term prospects for orders related to container handling remain good overall.


Konecranes expects sales in full-year 2020 to increase 7-10 percent year-on-year, including MHE-Demag. Konecranes expects the adjusted EBITA margin to improve in full-year 2020 compared to full-year 2019.


Fourth-quarterJanuary - December
10-12/ 201910-12/ 2018Change %1-12/ 20191-12/ 2018Change %
Orders received, MEUR781.3929.8-16.03,167.33,090.32.5
Order book at end of the period, MEUR1,824.31,715.46.3
Sales total, MEUR933.3910.82.53,326.93,156.15.4
Adjusted EBITDA, MEUR 1111.8101.99.7373.2325.714.6
Adjusted EBITDA, % 112.0%11.2%11.2%10.3%
Adjusted EBITA, MEUR 287.385.62.0275.1257.17.0
Adjusted EBITA, % 29.4%9.4%8.3%8.1%
Adjusted operating profit, MEUR
Adjusted operating margin, % 18.7%8.4%7.5%7.0%
Operating profit, MEUR65.551.926.3148.7166.2-10.5
Operating margin, %7.0%5.7%4.5%5.3%
Profit before taxes, MEUR63.351.922.0118.5138.7-14.6
Net profit for the period, MEUR45.835.828.082.898.3-15.8
Earnings per share, basic, EUR0.570.5015.01.031.29-20.5
Earnings per share, diluted, EUR0.570.5015.01.031.29-20.5
Interest-bearing net debt, Equity, %52.6%42.5%
Net Debt / Adjusted EBITDA, R12M 11.81.7
Return on capital employed, %6.3%7.9%
Adjusted return on capital employed, % 312.7%12.5%
Free cash flow, MEUR32.876.4148.573.1
The average number of personnel during the period16,10416,247-0.9

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

To read, President and CEO Rob Smith's statement, click here.


The Board of Directors of Konecranes Plc decided to continue the Employee Share Savings Plan

Konecranes Plc’s Annual General Meeting of Shareholders 2012 decided to implement an Employee Share Savings Plan (the Plan) in the Konecranes Group. Based on interest shown by the Group employees, the Board has decided to launch a new Plan Period. The new plan period will begin on July 1, 2020, and end on June 30, 2021. The maximum savings amount per participant during one month is 5 percent of gross salary and the minimum is EUR 50. Each participant will receive one free matching share for every two acquired savings shares. Matching shares will be delivered to a participant if the participant holds the acquired shares from the plan period until the end of the designated holding period, February 1, 2024, and if his or her employment has not ended before this date for reasons related to the employee. The total amount of all savings of the commencing plan period may not exceed EUR 8.5 million. The terms and conditions of the Plan Period 2020—2021 are unchanged from the previous Plan Periods.

An employee will participate in the Plan for one year at a time. Shares will be acquired with the accrued savings at the market price quarterly, after the publication dates of the Konecranes interim results, commencing in October 2020. Any dividends paid on purchased shares during the commencing Plan period will automatically be reinvested into additional shares on the following purchase date. These shares will have an equal right to matching shares.

The Board of Directors proposes to the Annual General Meeting of Shareholders to be held on March 26, 2020, that the Board of Directors be authorized to decide on a directed share issue without payment needed for the implementation of the Plan.

Konecranes announces changes to its "Leadership Team"

Konecranes today appointed Carolin Paulus Executive Vice President for the Industrial Equipment Business Area effective March 1, 2020. She will report to Konecranes President and CEO Rob Smith and join the Konecranes Leadership Team.

Paulus, 51, currently Senior Vice President for Global Parts & Service Procurement, will transition duties with Mikko Uhari, 62, who has led the Industrial Equipment Business Area since 2016, during February in line with Konecranes succession and retirement planning process. Uhari will take the project responsibility for leading the MHE-Demag integration prior to his retirement. In his new role, he will report to CFO Teo Ottola.

“Carolin brings extensive experience to the role and an excellent understanding of the dynamics driving Industrial Equipment. I look forward to working with her on the continuing transformation of the business,” said Rob Smith.

“Mikko has been in the company for 37 years and he has been instrumental to Konecranes’ success. I would also like to thank him for the excellent work he has done in integrating Demag and Konecranes and on a personal level for the advice and insights he has given me on our industry and Konecranes’ operations in general. His new role in the integration of the recently acquired MHE-Demag will be crucial to the next chapter of the Industrial Equipment business area,” Smith added.

Carolin Paulus has had 32 years of experience in our industry working in a wide range of roles both in the Industrial Equipment and Service businesses, with 16 years in senior manager roles. She will be based in Wetter, Germany.

Effective March 1, 2020, the Konecranes Leadership Team (formerly the Group Executive Board) will consist of:
  • Rob Smith, President, and CEO
  • Teo Ottola, Chief Financial Officer, Deputy CEO
  • Fabio Fiorino, Executive Vice President, Business Area Service 
  • Carolin Paulus, Executive Vice President, Business Area Industrial Equipment
  • Mika Mahlberg, Executive Vice President, Business Area Port Solutions
  • Juha Pankakoski, Executive Vice President, Technology
  • Minna Aila, Executive Vice President, Marketing & Corporate Affairs, until March 15, 2020
  • Timo Leskinen, Senior Vice President, Human Resources
  • Sirpa Poitsalo, Senior Vice President, General Counsel
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