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Investing.com -- Konecranes stock surged 13% after the Finnish crane manufacturer reported a record-high comparable EBITA margin and strong order intake for the third quarter, despite lower sales.
The company’s comparable EBITA margin reached 16.7%, up significantly from 13.4% in the same period last year. Comparable EBITA rose to EUR 164.9 million from EUR 143.1 million YoY, even as sales decreased 7.6% to EUR 988.7 million.
Order intake showed robust growth, increasing 20.1% to EUR 1,148.6 million compared to EUR 956.2 million in the third quarter of 2022. The company’s order book stood at EUR 3,057.4 million at the end of September, representing a 7.4% increase from the previous year.
All three of Konecranes’ business segments showed improved profitability. Industrial Service’s comparable EBITA margin increased to 22.7% from 21.6%, Industrial Equipment’s margin rose to 14.1% from 9.8%, and Port Solutions’ margin improved to 11.8% from 9.6%.
Operating profit for the quarter was EUR 153.6 million, representing 15.5% of sales, up from EUR 138.1 million or 12.9% of sales in the same quarter last year. Earnings per share increased slightly to EUR 1.31 from EUR 1.27.
The company also reported strong free cash flow of EUR 214.2 million, compared to EUR 187.1 million in the year-ago period. The Industrial Service annual agreement base value increased 1.7% to EUR 334.6 million.
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