Konecranes books USD 1.9 billion in new orders
Crane manufacturer Konecranes has recorded higher sales but lower profits in the first nine months of 2019. The Port Solutions business unit performed well with new crane orders and strong demand for straddle carriers.
The decline in profitability was mainly driven by the Industrial Equipment business unit, which struggled with lower volumes, weaker product mix and low productivity at Konescranes’ factory in France and Germany. “In addition, market softness has begun to limit our ability to fully absorb cost inflation with price increases”, interim CEO Teo Ottola states.
Weakening macroeconomic conditions were reflected in external orders, which fell 9.7 percent from the year-ago period. The low demand for Industrial Equipment is expected to remain in the fourth quarter.
The Port Solutions business unit performed well with new crane orders and strong demand for straddle carriers. “The general sentiment among port customers continues on a good level despite hesitation in the decisionmaking among some port customers”, says Ottola. Year-on-year sales growth in Port Solutions exceeded 16 percent in Q3.
Total sales over the first nine months of the year amounted to USD 2.39 billion, which is an increase of 10% in comparison with the same period last year. The operating profit, however, decreased from USD 114.3 million to 83.2 million due to the weaker performance of the Industrial Equipment department. At the end of September, Konecranes order book totalled a value of USD 1.9 billion, reflecting growth of 18.4%.
The crane manufacturer is an important shipper within the project cargo industry. Just recently, BigLift shipped three Konecranes STS cranes to Savannah in the US.