Interim reports Component shortages and supply chain problems curbed Konecranes’ revenue growth, but orders swelled

The company’s ebita margin decreased from last year’s comparison period but was still the second best ever in the third quarter.

Lifting equipment Konecranes’ strong manufacturing year continued in the third quarter. In July – September, the company’s orders received increased by 26.2 per cent year-on-year and net sales by 0.7 per cent. The company’s turnover in the third quarter was EUR 773.6 million.

“Component availability, customer delays and other supply chain constraints continued to impact our revenue in the third quarter. Their impact in the third quarter was approximately EUR 60 million. As a result, our net sales in the third quarter increased only slightly compared to the previous year, ”says the CEO Rob Smith in the interim report.

Company reports the profitability of its business with adjusted ebita margin. It means adjusted operating profit before amortization and impairment of intangible assets.

In July – September, Konecranes’ adjusted EBIT margin was 10.0 percent, compared to 10.4 percent in the comparison period last year. Adjusted ebita margin decreased from EUR 80.1 million in July – September last year to EUR 77.4 million. According to the company, the decrease is mainly due to temporary personnel cost savings in the comparison period.

CEO Smith describes the margin as an excellent achievement, taking into account, among other things, global component shortages and supply chain problems. According to the company, the ebita margin in July – September is the second best ever in the third quarter.

Concertine operating profit was eur 49.9 million and 6.4 percent of net sales. Last year, the corresponding figures were EUR 40.3 million and 5.2 per cent.

Last year, Konecranes announced a merger with cargo and cargo handling company Cargotec. The merger is expected to be completed by the end of June next year. According to the company, the related costs in July – September were EUR 19.4 million, compared to EUR 30.9 million last year.

Cargotec will release its third quarter results this afternoon.

Read more: The merger between Konecranes and Cargotec will go far next year, but the appointment of a CEO says there are probably no problems ahead.

Company estimates that the coronavirus pandemic will cause uncertainty about the demand outlook for the fourth quarter.

“Among industrial customers, the demand environment remains stable in Europe and North America. In the Asia-Pacific region, the demand environment outside China is still weaker than before the corona pandemic, ”the interim report states.

Global container traffic continues at a record high, and Konecrates expects the related long-term outlook to remain generally good.

The company forecasts that its net sales will increase and the ebita margin will improve this year compared to last year. According to CEO Smith, the company expects component shortages and supply chain constraints to continue in the fourth quarter and in 2022.

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