Shaping next generation material handling for a smarter, safer and better world: Konecranes announces new financial targets

KONECRANES PLC INSIDE INFORMATION MAY 10, 2023 8:30 AM EEST

 

Shaping next generation material handling for a smarter, safer and better world: Konecranes announces new financial targets

 

Konecranes announces its refreshed purpose, ambition and financial targets for the coming years ahead of its Capital Markets Day which will be held today, May 10.

 

“The world is facing an increasingly acute challenge to provide materials and goods that are essential for people while preserving scarce resources and limiting emissions. Businesses have a central role to play in solving this massive challenge, and as an industry leader Konecranes is perfectly placed to do that,” said Konecranes President and CEO Anders Svensson.

 

“We aim to become the world leader in material handling solutions creating value for everyone, and today we are announcing ambitious financial and performance targets that will guide us to success. Our ambition is underpinned by the purpose that drives us as a company: to shape next generation material handling for a smarter, safer and better world,” Svensson said.

 

“This success will come from five strategic enablers that build on Konecranes’ more than 100 years of experience as an industry leader: Deepening our customer focus; accelerating efficiency; scaling technology innovation; advancing responsible business; and enhancing our winning culture,” he said.

 

Reflecting the growing global demand for material handling solutions and services that sustainably meet people’s needs, Konecranes has established the following new financial targets:

 

• Sales growth faster than the market1
• Profitability: Comparable EBITA margin of 12-15%2 as soon as possible, but no later than in 2027 (2022 9.5%)

 

The financial targets of Konecranes’ Business Segments are the following:

 

Service:

• Sales growth clearly faster than the market1
• Comparable EBITA margin of 20-24%2

 

Industrial Equipment:

• Sales growth in line with the market1
• Comparable EBITA margin of 8-10%2

 

Port Solutions:

• Sales growth clearly faster than the market1
• Comparable EBITA margin of 9-11%2

 

1 nominal world GDP growth, IMF World Economic Outlook

2 profitability range, depending on the cycle

 

Growth is expected to be mainly organic. The comparable EBITA margin target range is expected to be reached as soon as possible, but no later than in 2027.

 

Konecranes also implements a dividend policy and aims to pay a stable to increasing dividend per share, over the cycle.

 

Konecranes’ commitment to driving the material handling industry towards a more sustainable future – an effort that has been recognized externally by leading bodies/organizations including the CDP – will remain at the core of how it operates. Konecranes now aims to have carbon neutral own operations by 2030 and continues its work to limiting global warming to 1.5°C and creating carbon-neutral supply chains.

 

“I look forward to sharing more of our thinking on all these topics at our Capital Markets Day, and in the days and weeks to come with employees, customers, investors and other stakeholders. Today marks the start of Konecranes’ next steps as a company, and with our passionate people, unmatched portfolio and sharpened customer focus we have all the ingredients to succeed,” President and CEO Svensson said.

 

Konecranes’ Capital Markets Day

 

Konecranes invites analysts, investors, financial media and other capital market representatives to follow its Capital Markets Day today, May 10, starting at 1 p.m. EEST.

 

At the event, Konecranes will provide an update on its strategic direction, three Business Segments, and financial targets. The day will include presentations by Konecranes President and CEO Anders Svensson, CFO Teo Ottola, and Business Area Heads Fabio Fiorino and Mika Mahlberg. The language of the event is English.

 

While in-person registration has now closed, presentations can be followed via a live webcast. Registration for the live webcast takes place at Konecranes’ dedicated Capital Markets website and is open until the start of the event. The presentations will be available on the same site when the event starts. A recording will be made available on Konecranes’ website shortly after the event. It is possible to ask management questions throughout the day via the webcast.

 

For more information on Konecranes’ Capital Markets Day, please visit our dedicated site.

 

 

KONECRANES PLC

Kiira Fröberg

Vice President, Investor Relations

 

FURTHER INFORMATION

Kiira Fröberg,

Vice President, Investor Relations,

tel. +358 (0) 20 427 2050

 

 

Konecranes is a global leader in material handling solutions, serving a broad range of customers across multiple industries. We consistently set the industry benchmark, from everyday improvements to the breakthroughs at moments that matter most, because we know we can always find a safer, more productive and sustainable way. That’s why, with around 16,600 professionals in over 50 countries, Konecranes is trusted every day to lift, handle and move what the world needs. In 2022, Group sales totalled EUR 3.4 billion. Konecranes shares are listed on Nasdaq Helsinki (symbol: KCR).

 

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