The strong volume development continued both in maintenance services and new equipment sales. Sales in the Americas grew 62%, in Asia-Pacific 57%, Nordic and Eastern Europe 36%, and in the European Union (excluding the Nordic countries, boosted by newly acquired Stahl CraneSystems) 56%. The 36% organic sales growth indicated improving market shares.

The order intake growth was strong in all regions, giving a one quarter all-time high order intake and an increased confidence for the future. The strongest demand growth was seen in primary metals and harbour sectors.

General manufacturing also had a good orders growth, and retained its position as the largest customer segment. As expected, operating margins improved in all business areas. Stahl CraneSystems performed well, with growing orders and margins in line with expectations. On a strong cash flow, the gearing number fell to 79.3%.

The company finds no reason to change its earlier guidance for the full year operating margin. In contrast to the pattern of previous years, KCI Konecranes now expects the year 2006 operating profit generation to be more evenly distributed between the four quarters.

Pekka Lundmark, Konecranes president, said: “We are quite pleased with the first quarter development. Our growth is well balanced across our business areas and geographical regions.”

He added: “Especially pleasing is that our efficiency programmes are now also delivering improving margins. We now report improving operating margins in all business areas. Maintenance services operating margin was 1.2% points higher compared to the level one year ago.”

Lundmark also explained that special cranes margin is recovering from the unsatisfactory levels seen during the first half of 2005. Also, he added, standard lifting equipment margin improved from 7.7% to 8.5%, despite the dilution caused by the Stahl CraneSystems acquisition.

“While we have been focusing on margin improvement, and will continue to do so, we have been able to retain our capital efficiency,” he said. “The combination of improving margins and good capital management boosted our 12-month rolling return on capital employed to 20.6%, while it was 17.2% in 2005.