Maintenance Services was the only division of KCI Konecranes to increase its sales revenue in 2002, the company’s latest accounts show.
Sales revenue from the Maintenance Services division rose 2% to Euro 372.4m. Sales from the Standard Lifting division fell 16.5% to Euro 204.5m and Special Cranes fell 8% to Euro 209.2. Stripping out internal sales gives a total sales figure of Euro 713.6m for the year.
Despite difficult trading conditions for the overhead crane industry, the company remained profitable in all divisions, recording earnings before income and tax of Euro 37.6m, down 32% on 2001.
Stig Gustavson, president and chief executive, commented: ‘At first glance, 2002 does not present itself as a particularly good year for the group. Sales did not reach previous years’ level, not did profits. At a second glance the picture changes. The markets for investment goods in the industrialised world continued in reverse gear but, in spite of that, it is a great pleasure for me to report significant progress in so many important fields of group activity: our Maintenance operations continued to grow, we made significant market entries (China, Japan), we developed and launched new products, we acquired competitors and our market shares grew in many markets.
‘Our operational efficiency continued to improve as cost cutting continued. Our cash flow hit a new record level. Still, our financial result was clearly lower. This is a consequence of lower sales but also increased research & development and merger & acquisition spending, ie. activities to improve our future prospects.’
