Thursday, April 28, 2011

Konecranes Reports Increase in Profits for Q1

Smaller Than Expected Rise Still Sign for Optimism
Shipping News Feature

FINLAND/ SOUTH AFRICA – Crane and container handling equipment manufacturer Konecranes has posted slightly smaller than anticipated profits for the first quarter of 2011, with Q1 figures stating the company has made just over $27 million (18.5 million Euros) operating profits in the January-to-March period.

Though slightly lower than expected by analysts and its own expectations, the figures still indicate that Konecranes has increased profits by 60% in comparison to the same period last year. The company has also seen a 59.4% increase in orders.

In a statement Pekka Lundmark, the company’s CEO and President, said that:

‘We are pleased with the development of demand during the first quarter of 2011. Our order intake, boosted by several large port crane projects, was the fourth highest in our history.

‘Our strong order book gives a good reason for optimism for the upcoming quarters.’

However, he also expressed concern at uncertainties in the global economy, particularly in regards to the problems of inflation and warns of the necessity of ‘...caution in business planning’.

The release of the Q1 figures follows Konecranes announcement that they have also just had their first container handling crane order from South Africa.

Transnet Capital Projects, a specialist unit of South African rail, port and pipeline company Transnet Limited, has ordered three rail mounted gantry (RMG) cranes to be used for intermodal operation at the City Deep Container Terminal in Johannesburg, with delivery to take place in 2012.

The City Deep Container Terminal is a key link in South Africa’s logistic network. It is the largest of the six major inland terminals, strategically located to connect with the ports in South Africa.

Containers are unloaded at various regional ports are transported to City Deep Container Terminal by rail before being dispatched by truck to their final destination.

The new RMG cranes will be loading and unloading containers between train and truck and are expected to significantly reduce the operation times and increase the productivity of the terminal.

(pic: The model of RMG cranes to be used at City Deep)