Sales growth also accelerated – 38.4% (organic 21%) higher for the first nine months, with third quarter sales up 45.6% (organic 31%).
Operating profit was €26.6m compared with €14.9m last year, and the operating margin on special cranes improved to 5.2% in the third quarter.
The company reported that strong growth in the first half of the year continued and accelerated during Q3/2005.
Standard lifting equipment sales were €223.4 (157.8) million, up by 41.6% (organic 28%). The operating income was €19.4 (13.3) million or 46.1% higher than in January-September 2004. The operating margin was 8.7 (8.4)%.
Orders received were €240.4 (187.7) million. The order growth was 28.1% (organic 19%) during three quarters and 30.9% in Q3. The development was particularly good in North and Eastern Europe as well as in North America.
The order book in standard lifting was down on the record level at the end of June, but was 14.7% higher than the same period a year ago, and it is 37.5% up from the level at the end of last year.
Special cranes sales were €219.3 (132.4) million, up by 65.7% (organic 31%). The operating income was €7.3 (7.6) million. The operating margin was 3.3 (5.7)%. The profitability improved during the third quarter. The operating income was €4.1 (2.9) million and the operating margin 5.2 (6.6)% compared to the margin of 2.3% during H1/2005.
The rapid growth and related ramp up costs are still burdening profitability. Process cranes are still too dependant on euro based high cost production. There are several actions in progress to improve flexibility and cost efficiencies. The new assembly plant in Shanghai, China is complete and production has started. An ownership stake in the Ukrainian crane company Zaporozhcrane and a strategic partnership with the Polish steel structure producer Mostostal Chojnice SA will provide new capacity at competitive cost.
A decision was made on the closure of the process crane manufacturing and assembly operation in Berlin. A one-time charge of €2.6 million will be booked in Q4/2005. The operation in Berlin will concentrate in the future to the sales, marketing, and project management of process cranes and related customer support. The closure of fabrication will affect approximately 40 people.
The order intake was €324.7 (157.6) million.
The growth was 106% (organic 72%) boosting the order book again to a new record level. The development has been strongest in the harbour and shipyard cranes.
The order book (the unrevenued portion of the total backlog) is now 84.8% higher than a year ago, and 53.4% up from the year-end 2004.
Meanwhile, KCI Konecranes has received its first order for Rubber Tired Gantry (RTG) cranes from Romania and the Dominican Republic, and has made further advances on the US West Coast. In total, 14 new RTGs have been ordered for these customers. The cranes will be delivered between May and July 2006.
Container terminal operator DP World has ordered five RTGs for Constantza South Container Terminal, Romania, and four RTGs for the new Multimodal Caucedo terminal in the Dominican Republic, Zona Franca.
The 16-wheel RTGs for the Port of Constantza in Romania have a lifting capacity of 40t, and can stack containers one-over-five high and six plus truck lane wide.
Caucedo Terminal will be developed to become the primary facility for container shipping to and from the Dominican Republic. The new eight-wheel all-electric RTGs have a lifting capacity of 40t with a twin-lift possibility and are capable of stacking containers one-over-five high and six plus truck lane wide.
Meanwhile, P&O Nedloyd has ordered five 16-wheel all-electric RTGs for the new Los Angeles Container Terminal.
