LIFE IS SWEET FOR KCI KONECRANES

Group sales of KCI Konecranes increased by 25% in 1997 to FIM 3,076m ($560m). The Special Cranes business saw the highest growth rate of all KCI divisions, jumping 36%, though margins were constrained by capacity constraints, the company said.

Net income was up 19% to FIM 234.4m ($43m).

By region the fastest sales increase occurred in the Americas and Western Europe. Asia-Pacific also posted good figures as an unusually large amount of project deliveries occurred during the year.

The number of cranes under service contract, which the company described as the best indicator of future maintenance service growth, grew by 25 %.

A range of major orders were taken in the final three months of the year, and most were for the Special Cranes business.

• Guangzhou Zhujiang Steel Co of China ordered two cranes, 190t and 280t capacity, for charging and hot metal handling. KCI Konecranes scope includes the complete mechanical and electrical engineering and all components. Steel girders will be made by the client. Erection and supervision are also part of KCI Konecranes’ obligations.

• A paper mill in China ordered a total of 17 cranes through Voith Sulzer Paper Technology and Valmet Coaters & Reelers.

• Verson Press ordered two 50 t EOT cranes and six 30t semi-gantry cranes for its plant in Chicago, USA. Verson builds stamping presses typically used in the automotive industry.

• Manzanillo International Terminal-Panama ordered six rubber-tyred gantry (RTG) cranes of 50t capacity.

• Técnicas y Mantenimiento de Almacenaje ordered two Super Post Panamax ship-to-shore container cranes for a terminal in the port of Barcelona,

• For a coke handling installation next to an oil refinery in Venezuela, engineering contractor, Consorcio Contrina LLC, a joint venture consisting of Brown & Root, Parsons, Technip, DIT Harris and Proyecta, bought two cranes.

• For the port of Klaipeda in Lithuania, the Klaipeda Stevedoring Company bought two Panamax ship-to-shore container cranes.

KCI president and CEO Stig Gustavson said: “1997 was a remarkable year for KCI Konecranes. There was strong growth in all aspects of corporate activity. Sales growth of 25.2 % was achieved mainly organically, as only two new businesses (with 2.9 % of total sales) were consolidated into Group numbers during the year.”

The French company Copas ALM was acquired in 1997. The German company MAN SWF Krantechnik GmbH, the acquisition of which was agreed in 1996, was finally taken over in July 1997.

“Sales growth was to some extent limited because of capacity constraints,” Gustavson said. “The Group embarked on an ambitious investment program which, when completed during spring 1998, will make it possible to grow the Special Cranes output by up to 50%. During 1997 capacity constraints were handled through increased subcontracting. This naturally took its toll on Special Cranes’ margins and some shipments were delayed.”