Konecranes Targets Higher Global Market Share

Konecranes, Hyvinkää, Finland staged a capital markets event earlier today in which it explored growth strategies presented both on group and business area levels and delivered an overview of procurement, finance, and research and development. Pekka Lundmark, president and CEO, discussed multiple topics, including differentiation through service and technology innovation; lifting people; global footprint; multiple (alpha/beta) distribution channels; global, demand-driven supply chain; and real-time information.

"The start of the fourth quarter has been in line with our expectations. The higher capacity utilization within our customer industries is supporting the demand for maintenance service,” said Lundmark. “Our customers are gradually regaining confidence to increase their new equipment investments too, but this seems to be a slow process in the developed markets.

"We have taken decisive steps to strengthen our position in the growing emerging markets. Following the successful establishment of greenfield operations both in China and India, the acquisitions of Sanma and WMI Cranes are clearly broadening our addressable markets and enhancing our service potential,” said Lundmark. “We have also increased our reach in Africa through acquisitions. All these are important additions to our sourcing and supply network as well.”

Konecranes reiterated the target to reach 10 percent operating margin over the cycle. The group continues to have a vision to reach a global market share of 30 percent. This vision carries no time limit and is based on both organic growth and potential acquisitions. The group's market share is estimated to have been approximately 16 percent in 2009 including the new equipment market and the open market for crane service.

Presentations and recordings of today's event will be available on the company's website.