Konecranes profits stung by supply chain holdups, Russia-Ukraine conflict

Konecranes reach staker

Konecranes has booked a €6 million ($6.1 million) net profit for the first half of 2022 – an 87 per cent decrease on last year’s figures.

The equipment manufacturer highlighted component availability in addition to the ongoing Russia-Ukraine war and COVID-19 impacts as factors driving behind the fall in profitability.

Konecranes booked a net profit of €46.8 million in 2021.

Despite the drop in profits, for 1H 2022 the firm enjoyed a 29.8 per cent increase in orders received to the tune of €2.04 billion ($2.07 billion).

The firm’s order book broke again a new record and was €2.83 billion ($2.87 billion) for the year to the end of June – a 43.1 per cent surge on the year prior.

Activity for the half-year remained high within ports, and Port Solutions’ orders grew by 47.3 per cent in comparable currencies and totalled €404 million ($410 million), including also larger projects.

Year-on-year, Konecranes’ Q2 orders received grew 19.9 per cent in comparable currencies and surpassed €1 billion ($1.02 billion) for a second consecutive quarter.

Net profit for the second quarter of 2022 reached €27.3 million ($27.75 million), a 3.9 per cent fall compared to the year prior.

Interim CEO Teo Ottola commented: “Component availability and other supply chain constraints, as well as COVID-19 related challenges affected our revenues in all three segments in Q2.

“We expect the market volatility caused by the ongoing war, the pandemic and other macroeconomic concerns to continue,” Ottola wrote.

“As we do not expect the situation with supply chain constraints to normalise in near-term, we lowered our full-year guidance ahead of the half-year financial report.

The firm expects its net sales to remain on the same level or to increase in full-year 2022 compared to 2021.

In June, the company announced that Anders Svensson has been appointed as Konecranes’ new President and CEO.

He will assume his role on 19 October 19 and joins Konecranes from Sandvik.

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