Konecranes profit drops as prices rise

An increase in product prices has led to Finnish crane maker Konecranes posting a 39% drop in profits for the fourth quarter 2011. The drop is compared to the same period in 2010, with net profit for the quarter at €23.1 million, down from €32.3 million in Q4 2010.

The company's order book at the end of the fourth quarter was €991.8 million, up 31.2% from a year earlier, while Q4 sales rose 27% to €598.2 million.

Konecranes achieved an operating profit before restructuring costs of €47.5 million, up from €45.8 million a year earlier.

Full year figures saw orders received to the value of €1.8 billion, up 23.4% on 2010. Operating profit before restructuring costs totalled €117.2 million.

Looking ahead, Konecranes forecasts a stable outlook but notes that due to the timing of large port crane projects, its quarterly equipment order intake may fluctuate. Based on its order book, the company forecasts increased sales and operating profit for 2012, compared to 2011.

Euro 1.00 = US$1.30 at the time of writing.