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HELSINKI—KCI Konecranes Oyj, which supplies a tenth of
the world’s cranes, said fourth-quarter profit surged 77
percent as global trade bolstered demand for container
lifting equipment.
Net
income rose to €27.6 million ($36.2 million), or 46
cents a share, from €15.6 million, or 27 cents, a year
earlier, the Hyvinkaeae-based company said Wednesday in
a statement.
Sales
rose 55 percent to €460.1 million. Both figures exceeded
estimates.
KCI won
crane orders in the
UK,
Bangladesh and Russia and last month said it would start
to manufacture straddle carriers, competing with
Cargotec Oyj’s Swedish unit, Kalmar Industries AB. The
company is now targeting operating profit equivalent to
10 percent of sales chief executive officer Pekka
Lundmark said Wednesday in a Web cast.
The
shares fell as much as €1.10, or 4.4 percent, to €23.75
and traded at €23.90 as of 4:01 p.m. in Helsinki. The
stock has more than doubled in the last twelve months,
giving KCI a market value of €1.49 billion.
“Technically they met expectations,’’ Johan Lindh, head
of research at Kaupthing Bank Oyj said Wednesday in a
telephone interview. “I can’t find any unique
characteristics in this report to explain the drop.’’
Lindh says he is reviewing his “neutral’’ recommendation
on the stock.
KCI was
expected to post earnings per share of 41 cents,
according to the median estimate of 6 analysts surveyed
by Bloomberg. Sales were predicted to be €422 million,
according to the median estimate of 8 analysts in the
survey.
“We
expect demand and organic growth to remain at a good
level, but it would not be prudent to expect it to
remain at the same level it has been,’’ Lundmark said.
The company is “starting to talk about a 15-percent
market share globally,’’ and considering moving
resources into the service business, which now accounts
for 26 percent of sales, he said.
KCI also
said in a separate statement today that chief financial
officer Teuvo Rintamaeki will resign for personal
reasons. He will continue in the job until a successor
is found, the statement said.
Bloomberg |
