EOT crane and hoist manufacturer KCI Konecranes has issued a warning on market conditions, saying that it will now have to spend more than originally planned on downsizing and restructuring.

The company statement, issued on 25 June 2003, said: “The demand for industrial cranes in Europe and North America remains weak and no immediate return to growth is expected.

“The demand for maintenance services continues to grow, in spite of low capacity utilisation in most customer industries. The growth is, however, slower than before.

“Capacity rationalisation and efficiency increasing actions as per Q1/03 report of May 6, 2003 continue and have been intensified. The separate actions in this capacity rationalisation and efficiency increasing programme have now been defined. Altogether, these actions are expected to accumulate 7 million euros in one time charges. The programme will affect several Group subsidiaries in America and Europe, incl. Finland.

“Regarding the underlying profits, we reiterate our statement in the Q1/03 report: ‘The profit level of 2002 remains within reach, however, the business environment remains very challenging.’

” However, due to the one time charges mentioned above, KCI Konecranes’ total operating profit will stay below the level of 2002.” Konecranes’ interim results for the six months to June 2003 will be published on 7 August 2003.