Konecranes Oyj — Interim / Quarterly Report 2012

Oct 24, 2012

Interim Report January–September 2012

OPERATING PROFIT and

OPERATING PROFIT and cash flow IMPROVED, ORDERS STABLE

Figures in brackets, unless otherwise stated, refer to the same period a year earlier

THIRD QUARTER HIGHLIGHTS

• Order intake EUR 458.0 million (458.5), -0.1 percent; Service +15.6 percent and Equipment -4.0 percent.

• Order book EUR 1,085.1 million (1,040.1) at end-September, 4.3 percent higher than a year ago, 3.4 percent lower than at end-June 2012.

• Sales EUR 529.8 million (450.9), +17.5 percent; Service +11.6 percent and Equipment +23.1 percent.

• Operating profit EUR 37.0 million (26.0), 7.0 percent of sales (5.8).

• Earnings per share (diluted) EUR 0.43 (0.31).
• Net cash flow from operating activities EUR 45.0 million (-1.6).

• Net debt EUR 250.5 million (203.3) and gearing 55.9 percent (50.2).

Market outlook

Macroeconomic uncertainties have increased and there are more signs of a weakening global demand due to the continuing crisis within the Eurozone and slower economic growth in some emerging markets. This is taking its toll on new inquiries.

Financial guidance

Based on the order book, we forecast year 2012 sales and operating profit to be higher than in 2011.

JANUARY-SEPTEMBER HIGHLIGHTS

• Order intake EUR 1,546.3 million (1,422.2), +8.7 percent; Service +8.3 percent and Equipment +9.8 percent.

• Sales EUR 1,565.1 million (1,298.2), +20.6 percent; Service +14.9 percent and Equipment +25.1 percent.
• Operating profit EUR 95.7 million (69.7), 6.1 percent of sales (5.4).
• Earnings per share (diluted) EUR 1.07 (0.70).
• Net cash flow from operating activities EUR 74.3 million (-31.2).

Key figures

	Third quarter			January-September
	7-9/2012	7-9/2011	Change %	1-9/2012	1-9/2011	Change %	R12M	2011
Orders received, MEUR	458.0	458.5	-0.1	1,546.3	1,422.2	8.7	2,020.2	1,896.1
Order book at end of period, MEUR				1,085.1	1,040.1	4.3		991.8
Sales total, MEUR	529.8	450.9	17.5	1,565.1	1,298.2	20.6	2,163.2	1,896.4
EBITDA excluding restructuring costs, MEUR	47.2	35.5	32.8	125.7	97.0	29.6	182.9	154.3
EBITDA excluding restructuring costs, %	8.9 %	7.9 %		8.0 %	7.5 %		8.5 %	8.1 %
Operating profit excluding restructuring costs, MEUR	37.0	26.0	42.2	95.7	69.7	37.4	143.2	117.2
Operating margin excluding restructuring costs, %	7.0 %	5.8 %		6.1 %	5.4 %		6.6 %	6.2 %
EBITDA, MEUR	47.2	35.5	32.8	125.7	97.0	29.6	176.8	148.1
EBITDA, %	8.9 %	7.9 %		8.0 %	7.5 %		8.2 %	7.8 %
Operating profit, MEUR	37.0	26.0	42.2	95.7	69.7	37.4	132.9	106.9
Operating margin, %	7.0 %	5.8 %		6.1 %	5.4 %		6.1 %	5.6 %
Profit before taxes, MEUR	37.1	26.3	41.2	90.3	60.1	50.2	125.9	95.8
Net profit for the period, MEUR	25.0	18.3	36.6	62.4	42.0	48.7	85.4	64.9
Earnings per share, basic, EUR	0.43	0.31	41.1	1.08	0.71	51.9	1.48	1.11
Earnings per share, diluted, EUR	0.43	0.31	41.8	1.07	0.70	52.6	1.47	1.10
Gearing, %				55.9 %	49.7 %			50.5 %
Return on capital employed %, Rolling 12 Months (R12M)							18.5 %	17.1 %
Average number of personnel during the period				11,860	10,834	9.5		10,998

President and CEO Pekka Lundmark,

"Although not yet at the goal, we are pleased with our results in third quarter. Service business is improving its performance and achieving the goal of prioritizing profitability over growth this year. Our maintenance contract base has developed well, which is a stabilizing element amid an uncertain economic environment. Equipment business is coping well with the challenging environment where fragmented market, overcapacity in the crane industry in some parts of the world and somewhat softening demand are all putting pressure on the sales margins.

The development in different parts of the world is uneven. Our strongest performer this year has been North America along with certain emerging markets, such as the ASEAN countries. Western Europe, China and India are all experiencing weaker demand. Our funnel of new opportunities is still reasonably good, but the lack of structural reforms to tackle various economic problems in the world may negatively affect our market."

KONECRANES PLC INTERIM REPORT JANUARY – SEPTEMBER 2012

Market review

In January-September of 2012, the global economic data was polarized by the strength in the U.S. domestic economy and the modest development in most of the other regions. The U.S. ISM purchasing managers' index surpassed expectations during most months and pointed to expanding American manufacturing activity, which was confirmed by the industrial production statistics. PMI surveys for the Eurozone suggested that the manufacturing activity contracted in the region.

The U.S. manufacturing capacity utilization rate was higher than in the previous year, but it began to level off in the second quarter of 2012. The manufacturing capacity utilization in the European Union has been down on the year-on-year basis since the second quarter of 2012.

While China's purchasing managers indexes – China Federation of Logistics & Purchasing PMI and HSBC/Markit PMI – gave mixed signals during the first half of 2012, both of them pointed to a contraction in the third quarter due to weaker export orders. In January-September, PMI surveys in India and Russia pointed to an improvement in manufacturing business conditions compared to the second half of 2011, while the development in Brazil was uneven.

Overall, the world's manufacturing sector expanded at a slow rate in the first half of 2012, while it contracted slightly in the third quarter according to the aggregated JPMorgan Global Manufacturing PMI.

Compared to the previous year, the demand for lifting equipment improved among industrial customers in the Americas, whereas it remained stable in EMEA. The demand weakened in APAC mainly due to China, which suffered from the tight credit availability and a slowdown in the economic growth.

The global container traffic continued to grow year-onyear at the rate of approximately 5 percent in the first seven months of 2012. Compared to the previous year, the rate of traffic growth has improved only in Oceania as well as Indian subcontinent and the Middle East, while it has decelerated the most in Europe after the solid performance in 2011.

Overall, the project activity with container ports was satisfactory. Demand was robust for automated solutions that provide higher productivity and lower costs for large terminals. As for container handling equipment using conventional technology, the demand has increased notably in Africa, while the demand in developed markets slackened towards the end of the reporting period. Demand for shipyard cranes continued to be concentrated in Brazil.

Demand for lifting equipment services improved as the outsourced maintenance continued to gain ground. New types of services using the latest IT and measurement technologies have proved increasingly attractive.

In January-September, steel and copper prices were lower than in the previous year. The EUR weakened against the USD in the same comparison period.

Note: Unless otherwise stated, the figures in brackets in the sections below refer to the same period in the previous year.

Orders received

January-September orders received totaled EUR 1,546.3 million (1,422.2), representing an increase of 8.7 percent compared with previous year. Orders received grew by 8.3 percent in Service and by 9.8 percent in Equipment compared to a year before. Orders received increased in the Americas and EMEA regions, while they declined in Asia-Pacific. Acquisitions contributed about 2 percent to the orders received in January-September.

Third-quarter order intake fell by 0.1 percent from a year before and totaled EUR 458.0 million (458.5). Order intake increased in Service by 15.6 percent, whereas it declined in Equipment by 4.0 percent. Orders received rose in the Americas but they fell in EMEA and APAC due to the lower orders within Business Area Equipment.

Order book

The value of the order book at end-September totaled EUR 1,085.1 million. The order book increased by 4.3 percent from the last year's comparison figure of EUR 1,040.1 million, but it decreased by 3.4 percent from end-June 2012 when it stood at EUR 1,122.8 million. Service accounted for EUR 154.9 million (14 percent) and Equipment for EUR 930.2 million (86 percent) of the total end-September order book.

Sales

Group sales in January-September increased by 20.6 percent from the previous year level and totaled EUR 1,565.1 million (1,298.2). Sales in Service rose by 14.9 percent and in Equipment by 25.1 percent. Acquisitions contributed about 2 percent to sales in January-September.

Third-quarter sales rose by 17.5 percent from a year ago and totaled EUR 529.8 million (450.9). Sales increased in Service by 11.6 percent and in Equipment by 23.1 percent.

At end-September, the regional breakdown calculated on a rolling 12 months basis was as follows: EMEA 48 (52), Americas 32 (29) and APAC 20 (20) percent.

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	Change percent	Change % at comparable currency rates	R12M	2011
EMEA	254.3	238.5	753.0	656.9	14.6	13.1	1,047.0	950.9
AME	179.1	128.4	516.4	374.2	38.0	27.5	691.3	549.1
APAC	96.4	83.9	295.6	267.0	10.7	3.1	425.0	396.4
Total	529.8	450.9	1,565.1	1,298.2	20.6	15.3	2,163.2	1,896.4

Net sales by region, MEUR

Currency rate effect

In a year-on-year comparison, the currency rates had a positive effect on the orders and sales in January-September. The reported order intake rose by 8.7 percent and by 3.8 percent at comparable currency rates. Reported sales rose by 20.6 percent and by 15.3 percent at comparable currency rates.

In January-September, the reported order intake in Service rose by 8.3 percent and by 2.5 percent at comparable currency rates. In Equipment, the reported order intake increased by 9.8 percent and by 5.2 percent at comparable currency rates. In Service, the reported sales increased by 14.9 percent and by 8.9 percent at comparable currency rates. The corresponding figures in Equipment sales were +25.1 percent and +20.4 percent.

The currency rates continued to have a positive effect on the orders and sales in the third quarter in a year-on-year comparison. The reported order intake fell by 0.1 percent and by 4.8 percent at comparable currency rates. Reported sales rose by 17.5 percent and by 11.8 percent at comparable currency rates.

In the third quarter, the reported order intake in Service rose by 15.6 percent and by 8.9 percent at comparable currency rates. In Equipment, the reported order intake decreased by 4.0 percent and by 7.9 percent at comparable currency rates. In Service, the reported sales increased by 11.6 percent or by 5.3 percent at comparable currency rates. The corresponding figures in Equipment sales were +23.1 percent and +17.7 percent.

Financial result

The consolidated operating profit in January-September totaled EUR 95.7 million (69.7) increasing in total by EUR 26.0 million. The consolidated operating margin improved to 6.1 percent (5.4). The operating margin in Service rose to 7.9 percent (6.2), whereas in Equipment it declined to 6.0 percent (6.2).

The consolidated operating profit in the third quarter totaled EUR 37.0 million (26.0). The consolidated operating margin in the third quarter improved to 7.0 percent (5.8). The operating margin in Service rose to 9.5 percent (6.6), whereas in Equipment it declined to 6.4 percent (6.6).

Both business areas benefited from the higher volumes compared to last year. Service's profitability was further supported by the restructuring actions executed in the first quarter of 2012. The Equipment operating margin was held back by higher fixed costs and intense competitive situation. Also, the sales mix had a negative effect on the Equipment operating margin in the second and third quarters.

In January-September, the depreciation and impairments totaled EUR 29.9 million (27.3). The amortization arising from the purchase price allocations for acquisitions represented EUR 11.1 million of this (10.7).

In January-September, the share of the result of associated companies and joint ventures was EUR 2.3 million (2.7).

Net financial expenses totaled EUR 7.8 million (12.2). Net interest expenses were EUR 8.3 million (4.4) of this, and the remainder was mainly attributable to the unrealized exchange rate differences related to the hedging of future cash flows that are not included in the hedge accounting.

The January-September profit before taxes was EUR 90.3 million (60.1).

Income taxes in January-September were EUR -27.9 million (-18.2). The Group's estimated effective tax rate was 30.9 percent (30.2).

Net profit for January-September was EUR 62.4 million (42.0).

Diluted earnings per share for January-September were EUR 1.07 (0.70).

On a rolling twelve-month basis, the return on capital employed was 18.5 percent (19.1) and the return on equity 20.0 percent (18.0).

BALANCE SHEET

The consolidated balance sheet, which at end-September stood at EUR 1,632.2 million, was EUR 224.7 million more than on September 30, 2011 and EUR 27.2 million more than on June 30, 2012. Total equity at the end of the report period was EUR 448.3 million (405.2). On September 30, the total equity attributable to equity holders of the parent company was EUR 442.1 million (399.8) or EUR 7.72 per share (7.06).

Net working capital amounted to EUR 341.4 million at end-September representing an increase of EUR 53.8 million from a year ago, but a decrease of EUR 11.8 million from June 30, 2012. Compared to a year ago, the net working capital rose due to higher inventories and receivables.

CASH FLOW AND FINANCING

Net cash from operating activities in January-September was EUR 74.3 million (-31.2) representing EUR 1.29 per diluted share (-0.51). Net cash from operations in the third quarter was EUR 45.0 million (-1.6).

Cash flow from capital expenditures amounted to EUR -45.4 million (-33.8).

Cash flow before financing activities was EUR 26.2 million (-133.9). Cash flow before financing activities in the third quarter was EUR 25.4 million (-43.1).

On September 30, 2012,the interest-bearing net debt was EUR 250.5 million (203.3). Solidity was 33.3 percent (32.3) and gearing 55.9 percent (50.2).

The Group's liquidity remained healthy. At the end of the third quarter, cash and cash equivalents amounted to EUR 111.8 million (113.5). None of the Group's EUR 200 million committed back-up financing facility was in use at the end of the period.

Capital expenditure

January-September capital expenditure excluding acquisitions and investments in associated companies amounted to EUR 23.5 million (22.5). This amount consisted of investments in machinery, equipment, properties and information technology.

Capital expenditure including acquisitions and investments in associated companies was EUR 25.1 million (100.1).

Acquisitions

Capital expenditure on acquisitions and investments in associated companies was EUR 1.6 million (77.7). During January-September, Konecranes made four small crane servicerelated bolt-on acquisitions in Germany, USA, Czech Republic and Sweden. The net assets of the acquisitions were recorded at EUR 1.6 million. No goodwill was booked from the acquisitions.

Personnel

In January-September, the Group employed an average of 11,860 people (10,834). On 30 September, the headcount was 12,107 (11,427). At end-September, the number of personnel by Business Area was as follows: Service 6,114 employees (5,901), Equipment 5,936 employees (5,476) and Group staff 57 (50). The Group had 6,263 employees (6,071) working in EMEA, 2,653 (2,476) in the Americas and 3,191 (2,880) in the APAC region.

BUSINESS AREAS

Service

					Change
	7-9/2012	7-9/2011	1-9/2012	1-9/2011	percent	R12M	2011
Orders received, MEUR	182.4	157.8	553.7	511.3	8.3	737.0	694.6
Order book, MEUR	154.9	136.5	154.9	136.5	13.5		135.1
Contract base value, MEUR	182.1	157.6	182.1	157.6	15.6		166.2
Net sales, MEUR	218.9	196.2	645.0	561.3	14.9	879.9	796.1
EBITDA, MEUR	23.9	15.6	60.0	43.5	38.0	79.9	63.3
EBITDA, %	10.9 %	8.0 %	9.3 %	7.7 %		9.1 %	8.0 %
Depreciation and amortization, MEUR	-3.2	-2.9	-9.2	-8.7	6.4	-12.3	-11.7
Impairments, MEUR	0.0	0.0	0.0	0.0		-2.2	-2.2
Operating profit (EBIT), MEUR	20.8	13.0	50.8	34.8	45.9	65.4	49.4
Operating profit (EBIT), %	9.5 %	6.6 %	7.9 %	6.2 %		7.4 %	6.2 %
Restructuring costs, MEUR	0.0	0.0	0.0	0.0		-6.3	-6.3
Operating profit (EBIT) excluding restructuring costs, MEUR	20.8	13.0	50.8	34.8	45.9	71.7	55.7
Operating profit (EBIT) excluding restructuring costs, %	9.5 %	6.6 %	7.9 %	6.2 %		8.2 %	7.0 %
Capital employed, MEUR	196.4	200.1	196.4	200.1	-1.9		190.9
ROCE%						33.0 %	27.9 %
Capital expenditure, MEUR	2.0	2.1	7.0	5.8	21.1	10.5	9.3
Personnel at the end of period	6,114	5,901	6,114	5,901	3.6		5,980

January-September orders received totaled EUR 553.7 million (511.3) showing an increase of 8.3 percent. New orders grew in the Americas and APAC, while they remained stable in the EMEA. Order intake growth was particularly strong in Crane Service and Parts. The order book increased by 13.5 percent to EUR 154.9 million (136.5) from a year before, but declined by 0.5 percent from end-June 2012. Sales increased by 14.9 percent to EUR 645.0 million (561.3). Operating profit was EUR 50.8 million (34.8) and the operating margin 7.9 percent (6.2). Operating profit improved due to the higher volume and the restructuring actions executed in the first quarter of 2012.

The third quarter order intake increased by 15.6 percent and totaled EUR 182.4 million (157.8). New orders grew in the Americas and APAC, while they were stable in the EMEA. Order intake growth remained solid in Crane Service and Parts. Third quarter sales totaled EUR 218.9 million (196.2) and were 11.6 percent higher than a year ago. Operating profit was EUR 20.8 million (13.0) and the operating margin 9.5 percent (6.6). Operating profit improved due to the higher volume and the restructuring actions executed in the first quarter of 2012.

The total number of equipment included in the maintenance contract base increased to 422,856 at end-September from 394,123 a year before and from 419,607 at end-June, 2012. The annual value of the contract base amounted to EUR 182.1 million compared to 157.6 MEUR a year ago and 181.1 MEUR at end-June, 2012.

The number of service technicians at end-September was 3,941, which is 206 or 5.5 percent more than at the end of September 2011.

EQUIPMENT

	Change
	7-9/2012	7-9/2011	1-9/2012	1-9/2011	percent	R12M	2011
Orders received, MEUR	303.2	315.9	1,070.6	975.5	9.8	1,386.7	1,291.5
Order book, MEUR	930.2	903.6	930.2	903.6	2.9		856.7
Net sales, MEUR	341.6	277.6	1,009.8	807.0	25.1	1,404.2	1,201.4
EBITDA, MEUR	28.9	24.8	80.7	68.6	17.6	116.8	104.8
EBITDA, %	8.5 %	8.9 %	8.0 %	8.5 %		8.3 %	8.7 %
Depreciation and amortization, MEUR	-7.0	-6.5	-20.4	-18.4	11.3	-27.1	-25.0
Impairments, MEUR	0.0	0.0	0.0	0.0		-2.0	-2.0
Operating profit (EBIT), MEUR	21.9	18.3	60.3	50.3	19.9	87.7	77.7
Operating profit (EBIT), %	6.4 %	6.6 %	6.0 %	6.2 %		6.2 %	6.5 %
Restructuring costs, MEUR	0.0	0.0	0.0	0.0		-4.0	-4.0
Operating profit (EBIT) excluding restructuring costs, MEUR	21.9	18.3	60.3	50.3	19.9	91.7	81.7
Operating profit (EBIT) excluding restructuring costs, %	6.4 %	6.6 %	6.0 %	6.2 %		6.5 %	6.8 %
Capital employed, MEUR	459.1	386.3	459.1	386.3	18.8		426.1
ROCE%						20.8 %	23.2 %
Capital expenditure, MEUR	4.4	5.4	16.5	16.7	-1.0	23.0	23.2
Personnel at the end of period	5,936	5,476	5,936	5,476	8.4		5,621

January-September orders received totaled EUR 1,070.6 million (975.5) showing an increase of 9.8 percent. Orders grew in the Americas and EMEA but fell in Asia-Pacific due to the market weakness mainly experienced in China. Orders for industrial cranes accounted for approximately 45 percent of the orders received and were higher than a year ago. Components and light lifting systems generated approximately 25 percent of the new orders and were above last year's level. The combined orders for port cranes and lift trucks amounted to approximately 30 percent of the orders received and were higher than a year ago.

The order book increased by 2.9 percent to EUR 930.2 million (903.6) from a year before, but it declined by 3.8 percent from the end-June 2012. Sales rose by 25.1 percent to EUR 1,009.8 million (807.0). Operating profit was EUR 60.3 million (50.3) and 6.0 percent of the sales (6.2). Compared to the

previous year, the operating profit improved due to the higher volume but it was held back by the higher fixed costs, intense competitive situation and the adverse sales mix effect.

The third quarter order intake declined by 4.0 percent and totaled EUR 303.2 million (315.9). Orders received rose in the Americas but fell in EMEA and APAC. The development of Lift Trucks had the most positive outcome, whereas orders fell the most in Port Cranes.

The third-quarter sales totaled EUR 341.6 million (277.6) and were 23.1 percent more than a year ago. Third-quarter operating profit was EUR 21.9 million (18.3), and the operating margin 6.4 percent (6.6). Compared to the previous year, the operating profit improved due to the higher volume. The sales mix and higher fixed costs had a negative effect on the operating margin in year-on-year comparison.

9

Group Overheads

Unallocated Group overhead costs and eliminations were EUR –15.3 million (–15.4) in the reporting period representing 1.0 percent of sales (1.2).

Administration

The resolutions of the Konecranes Annual General Meeting and the organizing meeting of the Board of Directors have been published in the stock exchange releases dated March 22, 2012.

SHARE CAPITAL AND SHARES

The company's registered share capital on September 30, 2012 totaled EUR 30.1 million. On September 30, 2012, the number of shares including treasury shares totaled 63,272,342.

On September 30, 2012, Konecranes Plc was in the possession of 6,018,621 own shares, which corresponds to 9.5 percent of the total number of shares, and which had a market value of EUR 135.8 million on that date.

All shares carry one vote per share and equal rights to dividends.

SHARES SUBSCRIBED FOR UNDER STOCK OPTION RIGHTS

Pursuant to Konecranes Plc's stock options 2009A, 30,915 new shares were subscribed and registered in the Finnish Trade Register in January-June 2012. As a result of these subscriptions, the total number of Konecranes Plc's shares, including treasury shares, rose to 63,272,342.

In accordance with the terms and conditions of the stock options 2009, Konecranes Plc's Board of Directors resolved that instead of issuing new shares in the company, the shares held by the company (treasury shares) can be offered to the subscribers in the share subscription. Treasury shares have been used for the share subscriptions made after June 8, 2012. In July-September, 23,835 treasury shares were transferred to the subscribers pursuant to the Konecranes Plc's stock options 2009A.

At end-September 2012, Konecranes Plc's stock options 2009 entitled the holders to subscribe to a total of 2,155,750 shares. The option programs include approximately 210 key persons.

The terms and conditions of the stock option programs are available on Konecranes' website at www.konecranes.com.

SHARE-BASED INCENTIVE PLANS

A summary of Konecranes Plc's share-based incentive plans is available in the Interim Report January-June 2012 published on July 25, 2012.

MARKET CAPITALIZATION AND TRADING VOLUME

The closing price for Konecranes Plc's shares on the NASDAQ OMX Helsinki was EUR 22.56 on September 30, 2012. The volume-weighted average share price in January-September was EUR 20.75, the highest price being EUR 25.54 in February and the lowest EUR 14.34 in January. In January–September, the trading volume on the NASDAQ OMX Helsinki totaled 101.2 million Konecranes Plc shares corresponding to a turnover of approximately EUR 2,099 million. The average daily trading volume was 535,392 shares representing an average daily turnover of EUR 11.1 million.

In addition, according to Fidessa, approximately 70.4 million Konecranes' shares were traded on other trading venues (e.g. multilateral trading facilities and bilateral OTC trades) in January-September 2012.

On September 30, 2012, the total market capitalization of Konecranes Plc's shares was EUR 1,427 million including treasury shares. The market capitalization was EUR 1,292 million excluding treasury shares.

EVENTS AFTER THE END OF THE REPORTING PERIOD

In October, 4,549 treasury shares were transferred to the subscribers pursuant to the Konecranes Plc's stock options 2009A. After the subscription and delivery of the shares, Konecranes Plc holds 6,014,072 treasury shares. Stock options issued under Konecranes Plc's ongoing stock option plans entitle their holders to subscribe for a total of 2,142,201 shares.

RISKS AND UNCERTAINTIES

Principal short-term risks and uncertainties of the Group derive from a possible renewed downturn in the world economy due, for example, to the sovereign credit crisis. A decrease in demand for Konecranes' products and services may have a negative effect on the Group's pricing power and result in a decrease in profits, possible impairment of goodwill and other assets, or in an inventory obsolescence.

A renewed shortage of credit may cause difficulties for Konecranes' customers, suppliers and financial and other counterparties. The risk may be realized as a shortage of supplies or defaulting liabilities. A growing share of Konecranes' business is derived from emerging markets. This has had a negative impact on the aging structure of accounts receivable and may increase the need for higher provisions for doubtful accounts.

Challenges in financing may force customers to postpone projects or even to cancel existing orders. A renewed downturn in the world economy could increase postponement of deliveries and cancellations of orders. Advance payments are an integral part of the Konecranes' project business and they have played a crucial role in mitigating the adverse effects from postponements of certain deliveries and minor cancellations. Konecranes intends to avoid incurring costs of major projects under construction in excess of advance payments. However, it is possible that in some projects cost-related commitments may temporarily exceed the amount of advance payments.

Group's other risks have remained unchanged and the pivotal risks are presented in the Annual Report 2011.

MARKET OUTLOOK

Macroeconomic uncertainties have increased and there are more signs of a weakening global demand due to the continuing crisis within the Eurozone and slower economic growth in some emerging markets. This is taking its toll on new inquiries.

FINANCIAL GUIDANCE

Based on the order book, we forecast year 2012 sales and operating profit to be higher than in 2011.

Helsinki, October 24, 2012 Konecranes Plc Board of Directors

Disclaimer

It should be noted that certain statements in this report, which are not historical facts, including, without limitation, those regarding

• expectations for general economic development and market situation,
• expectations for general developments in the industry,
• expectations regarding customer industry profitability and investment willingness,
• expectations for company growth, development and profitability,
• expectations regarding market demand for the company's products and services,
• expectations regarding the successful completion of acquisitions on a timely basis and our ability to achieve the set targets and synergies,
• expectations regarding competitive conditions,
• expectations regarding cost savings,
• and statements preceded by "believes," "expects," "anticipates," "foresees" or similar expressions, are forward-looking statements. These statements are based on current expectations, decisions and plans and currently known facts. Therefore, they involve risks and uncertainties, which may cause actual results to materially differ from the results currently expected by the company. Such factors include, but are not limited to,
• general economic conditions, including fluctuations in exchange rates and interest levels,
• the competitive situation, especially significant products or services developed by our competitors,
• industry conditions,
• the company's own operating factors, including the success of production, product development, project management, quality, and timely delivery of our products and services and their continuous development,
• the success of pending and future acquisitions and restructurings.

Summary Financial Statements and Notes

Accounting principles

The presented financial information is prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU.

Konecranes resiled starting from 1.1.2012 from the deferred recognition of actuarial gains and losses for defined benefit plans (i.e. the corridor approach) according to IAS19. By changing the accounting principle Konecranes prepares for the IAS 19R which was endorsed by EU in June 2012. Actuarial gains and losses are now recognized in consolidated statement of comprehensive income when they occur. The comparison figures of 2011 have been adjusted to meet the changed

accounting principles. During 2011 the change effected the actuarial gains in consolidated statement of comprehensive income by EUR +1.1 million and taxes by EUR +0.4 million. In balance sheet the change decreased the retained earnings of 2011 by EUR -3.3 million (EUR -4.0 million in 2010), and increased the other long term liabilities by EUR +4.5 million and deferred tax assets by EUR +1.2 million.

The figures presented in the tables below have been rounded to one decimal, which should be taken into account when reading the sum figures.

The numbers stated in this bulletin have not been subject to audit.

Consolidated statement of income

EUR million	7-9/2012	7-9/2011	1-9/2012	1-9/2011	Change %	1-12/2011
Sales	529.8	450.9	1,565.1	1,298.2	20.6	1,896.4
Other operating income	0.3	0.8	1.6	2.2		4.1
Depreciation and impairments	-10.2	-9.5	-29.9	-27.3		-41.3
Other operating expenses	-483.0	-416.2	-1,441.0	-1,203.4		-1,752.3
Operating profit	37.0	26.0	95.7	69.7	37.4	106.9
Share of associates' and joint ventures' result	0.1	0.2	2.3	2.7		3.8
Financial income and expenses	0.0	0.1	-7.8	-12.2		-14.9
Profit before taxes	37.1	26.3	90.3	60.1	50.2	95.8
Taxes	-12.0	-7.9	-27.9	-18.2		-30.8
NET PROFIT FOR THE PERIOD	25.0	18.3	62.4	42.0	48.7	64.9
Net profit for the period attributable to:
Shareholders of the parent company	24.9	18.4	61.8	42.4		65.5
Non-controlling interest	0.2	0.0	0.6	-0.4		-0.6
Earnings per share, basic (EUR)	0.43	0.31	1.08	0.71	51.9	1.11
Earnings per share, diluted (EUR)	0.43	0.31	1.07	0.70	52.6	1.10

Consolidated statement of comprehensive income

EUR million	7-9/2012	7-9/2011	1-9/2012	1-9/2011	1-12/2011
Net profit for the period	25.0	18.3	62.4	42.0	64.9
Other comprehensive income for the period, net of tax
Exchange differences on translating foreign operations	-2.7	6.2	5.1	-5.9	3.5
Actuarial gains and losses (IAS 19)	0.2	0.0	-0.7	0.0	1.1
Cash flow hedges	-1.0	-5.2	-0.8	0.6	-4.6
Income tax relating to components of other comprehensive income	0.2	1.4	0.2	-0.1	0.8
Other comprehensive income for the period, net of tax	-3.4	2.4	3.7	-5.5	0.7
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	21.7	20.7	66.1	36.4	65.6
Total comprehensive income attributable to:
Shareholders of the parent company	21.6	20.3	65.5	36.7	65.7
Non-controlling interest	0.1	0.4	0.6	-0.2	-0.1

Consolidated balance sheet

EUR million

ASSETS	30.9.2012	30.9.2011	31.12.2011
Non-current assets
Goodwill	116.2	112.7	115.3
Intangible assets	73.5	86.3	81.6
Property, plant and equipment	132.1	118.2	125.4
Advance payments and construction in progress	61.9	30.4	40.0
Investments accounted for using the equity method	36.3	34.3	34.6
Available-for-sale investments	1.4	1.4	1.4
Long-term loans receivable	0.2	0.5	0.2
Deferred tax assets	51.5	41.9	49.1
Total non-current assets	473.0	425.6	447.7
Current assets
Inventories
Raw material and semi-manufactured goods	165.0	147.6	152.8
Work in progress	227.2	193.6	176.8
Advance payments	20.7	16.8	17.8
Total inventories	413.0	357.9	347.5
Accounts receivable	482.1	353.2	405.9
Loans receivable	0.1	0.6	0.3
Other receivables	25.7	35.2	44.8
Current tax assets	13.1	22.5	10.2
Deferred assets	113.3	99.0	118.5
Cash and cash equivalents	111.8	113.5	72.7
Total current assets	1,159.2	982.0	999.8
TOTAL ASSETS	1,632.2	1,407.5	1,447.5

EUR million

EQUITY AND LIABILITIES	30.9.2012	30.9.2011	31.12.2011
Equity attributable to equity holders of the parent company
Share capital	30.1	30.1	30.1
Share premium account	39.3	39.3	39.3
Share issue	0.0	0.0	0.0
Fair value reserves	-3.5	1.0	-2.9
Translation difference	8.6	-5.6	3.5
Paid in capital	44.3	43.7	43.7
Retained earnings	261.6	249.0	250.8
Net profit for the period	61.8	42.4	65.5
Total equity attributable to equity holders of the parent company	442.1	399.8	429.9
Non-controlling interest	6.1	5.4	5.5
Total equity	448.3	405.2	435.4
Liabilities
Non-current liabilities
Interest-bearing liabilities	206.1	89.6	129.1
Other long-term liabilities	64.0	62.3	63.2
Deferred tax liabilities	24.2	25.2	26.6
Total non-current liabilities	294.2	177.1	219.0
Provisions	48.3	45.4	54.1
Current liabilities
Interest-bearing liabilities	156.5	228.3	163.9
Advance payments received	286.5	151.3	174.1
Progress billings	1.4	14.0	4.7
Accounts payable	147.8	132.4	152.3
Other short-term liabilities (non-interest bearing)	20.3	24.7	25.5
Current tax liabilities	14.6	12.6	8.8
Accruals	214.3	216.6	209.7
Total current liabilities	841.4	779.9	739.0
Total liabilities	1,183.9	1,002.3	1,012.1
TOTAL EQUITY AND LIABILITIES	1,632.2	1,407.5	1,447.5

Consolidated statement of changes in equity

Equity attributable to equity holders of the parent company
		Share
	Share	premium	Share	Cash flow	Translation
EUR million	capital	account	issue	hedge	difference
Balance at 1 January, 2012	30.1	39.3	0.0	-2.9	3.5
Options exercised
Share issue
Dividends paid to equity holders
Share based payments recognized against equity
Business combinations
Total comprehensive income				-0.6	5.1
Balance at 30 September, 2012	30.1	39.3	0.0	-3.5	8.6
Balance at 1 January, 2011 reported	30.1	39.3	8.7	0.5	0.5
Changes in accounting principles (IAS 19)
Balance at 1 January, 2011 amended	30.1	39.3	8.7	0.5	0.5
Options exercised
Share issue			-8.7
Dividends paid to equity holders
Share based payments recognized against equity
Purchase of treasury shares
Business combinations
Total comprehensive income				0.4	-6.1
Balance at 30 September, 2011	30.1	39.3	0.0	1.0	-5.6

Equity attributable to equity holders of the parent company

	Paid in	Retained		Non-control	Total
EUR million	capital	earnings	Total	ling interest	equity
Balance at 1 January, 2012	43.7	316.2	429.9	5.5	435.4
Options exercised	0.6		0.6		0.6
Share issue			0.0		0.0
Dividends paid to equity holders		-57.2	-57.2		-57.2
Share based payments recognized against equity		3.4	3.4		3.4
Business combinations		-0.1	-0.1		-0.1
Total comprehensive income		61.0	65.5	0.6	66.1
Balance at 30 September, 2012	44.3	323.4	442.1	6.1	448.3
Balance at 1 January, 2011	10.5	360.8	450.5	5.7	456.2
Changes in accounting principles (IAS19)		-4.0	-4.0		-4.0
Balance at 1 January, 2011 amended	10.5	356.8	446.5	5.7	452.2
Options exercised	24.6		24.6		24.6
Share issue	8.6		-0.1		-0.1
Dividends paid to equity holders		-60.0	-60.0		-60.0
Share based payments recognized against equity		3.4	3.4		3.4
Purchase of treasury shares		-51.3	-51.3		-51.3
Business combinations		0.1	0.1	-0.1	-0.1
Total comprehensive income		42.4	36.7	-0.2	36.4
Balance at 30 September, 2011	43.7	291.3	399.8	5.4	405.2

Consolidated cash flow statement

EUR million	1-9/2012	1-9/2011	1-12/2011
Cash flow from operating activities
Net income	62.4	42.0	64.9
Adjustments to net income
Taxes	27.9	18.2	30.8
Financial income and expenses	8.0	12.6	15.3
Share of associates' and joint ventures' result	-2.3	-2.7	-3.8
Dividend income	-0.2	-0.4	-0.4
Depreciation and impairments	29.9	27.3	41.3
Profits and losses on sale of fixed assets	-0.1	-0.2	-0.1
Other adjustments	2.0	1.8	2.6
Operating income before change in net working capital	127.6	98.6	150.7
Change in interest-free short-term receivables	-46.7	-21.8	-92.0
Change in inventories	-62.6	-72.8	-56.8
Change in interest-free short-term liabilities	99.8	6.8	29.6
Change in net working capital	-9.5	-87.8	-119.2
Cash flow from operations before financing items and taxes	118.1	10.7	31.5
Interest received	4.4	6.1	6.5
Interest paid	-11.2	-7.6	-10.7
Other financial income and expenses	-7.1	-5.5	-6.6
Income taxes paid	-30.0	-34.9	-41.4
Financing items and taxes	-43.9	-41.9	-52.3
Net cash from operating activities	74.3	-31.2	-20.8
Cash flow from investing activities
Acquisition of Group companies, net of cash	-5.1	-70.1	-73.6
Capital expenditures	-45.4	-33.8	-53.3
Proceeds from sale of fixed assets	2.2	0.8	0.9
Dividends received	0.2	0.4	0.4
Net cash used in investing activities	-48.1	-102.7	-125.6
Cash flow before financing activities	26.2	-133.9	-146.5
Cash flow from financing activities
Proceeds from options exercised and share issues	0.6	24.5	24.5
Purchase of treasury shares	0.0	-43.3	-51.3
Proceeds from long-term borrowings	77.2	60.9	162.4
Repayments of long-term borrowings	0.0	-4.2	-64.6
Proceeds from (+), payments of (-) short-term borrowings	-9.1	172.6	107.1
Change in long-term receivables	0.0	-0.2	0.0
Change in short-term receivables	0.3	1.2	1.6
Dividends paid to equity holders of the parent	-57.2	-60.0	-60.0
Net cash used in financing activities	11.8	151.5	119.7
Translation differences in cash	1.2	-2.4	1.0
Change of cash and cash equivalents	39.1	15.1	-25.8
Cash and cash equivalents at beginning of period	72.7	98.5	98.5
Cash and cash equivalents at end of period	111.8	113.5	72.7
Change of cash and cash equivalents	39.1	15.1	-25.8

The effect of changes in exchange rates has been eliminated by converting the beginning balance at the rates current on the last day of the reporting period.

Segment information

1. BUSINESS SEGMENTS

EUR million

Orders received by Business Area	1-9/2012	% of total	1-9/2011	% of total	1-12/2011	% of total
Service 1)	553.7	34	511.3	34	694.6	35
Equipment	1,070.6	66	975.5	66	1,291.5	65
./. Internal	-78.0		-64.6		-90.1
Total	1,546.3	100	1,422.2	100	1,896.1	100

1) Excl. Service Contract Base

Order book total 2)	30.9.2012	% of total	30.9.2011	% of total	31.12.2011	% of total
Service	154.9	14	136.5	13	135.1	14
Equipment	930.2	86	903.6	87	856.7	86
Total	1,085.1	100	1,040.1	100	991.8	100

2) Percentage of completion deducted

Sales by Business Area	1-9/2012	% of total	1-9/2011	% of total	1-12/2011	% of total
Service	645.0	39	561.3	41	796.1	40
Equipment	1,009.8	61	807.0	59	1,201.4	60
./. Internal	-89.8		-70.1		-101.1
Total	1,565.1	100	1,298.2	100	1,896.4	100

Operating profit (EBIT) by Business Area	1-9/2012		1-9/2011		1-12/2011
excluding restructuring costs	MEUR	EBIT %	MEUR	EBIT %	MEUR	EBIT %
Service	50.8	7.9	34.8	6.2	55.7	7.0
Equipment	60.3	6.0	50.3	6.2	81.7	6.8
Group costs and eliminations	-15.3		-15.4		-20.3
Total	95.7	6.1	69.7	5.4	117.2	6.2

Operating profit (EBIT) by Business Area	1-9/2012		1-9/2011		1-12/2011
including restructuring costs	MEUR	EBIT %	MEUR	EBIT %	MEUR	EBIT %
Service	50.8	7.9	34.8	6.2	49.4	6.2
Equipment	60.3	6.0	50.3	6.2	77.7	6.5
Group costs and eliminations	-15.3		-15.4		-20.3
Total	95.7	6.1	69.7	5.4	106.9	5.6

Segment information

	1-9/2012	1-9/2011	1-12/2011
Capital Employed and ROCE%	MEUR	MEUR	MEUR	ROCE %
Service	196.4	200.1	190.9	27.9
Equipment	459.1	386.3	426.1	23.2
Unallocated Capital Employed	155.4	140.7	111.5
Total	810.9	727.2	728.4	17.1

	Personnel by Business Area

(at the end of the period)	30.9.2012	% of total	30.9.2011	% of total	31.12.2011	% of total
Service	6,114	50	5,901	52	5,980	51
Equipment	5,936	49	5,476	48	5,621	48
Group staff	57	0	50	0	50	0
Total	12,107	100	11,427	100	11,651	100

2. GEOGRAPHICAL SEGMENTS

Sales by market	1-9/2012	% of total	1-9/2011	% of total	1-12/2011	% of total
Europe-Middle East-Africa (EMEA)	753.0	48	656.9	51	950.9	50
Americas (AME)	516.4	33	374.2	29	549.1	29
Asia-Pacific (APAC)	295.6	19	267.0	21	396.4	21
Total	1,565.1	100	1,298.2	100	1,896.4	100

Personnel by region
(at the end of the period)	30.9.2012	% of total	30.9.2011	% of total	31.12.2011	% of total
Europe-Middle East-Africa (EMEA)	6,263	52	6,071	53	6,144	53
Americas (AME)	2,653	22	2,476	22	2,513	22
Asia-Pacific (APAC)	3,191	26	2,880	25	2,994	26
Total	12,107	100	11,427	100	11,651	100

KEY FIGURES	30.9.2012	30.9.2011	Change %	31.12.2011
Earnings per share, basic (EUR)	1.08	0.71	51.9	1.11
Earnings per share, diluted (EUR)	1.07	0.70	52.6	1.10
Return on capital employed %, Rolling 12 Months (R12M)	18.5	19.1	-3.1	17.1
Return on equity %, Rolling 12 Months (R12M)	20.0	18.0	11.1	14.6
Equity per share (EUR)	7.72	7.06	9.3	7.52
Current ratio	1.3	1.2	8.3	1.3
Gearing %	55.9	50.2	11.4	50.5
Solidity %	33.3	32.3	3.1	34.2
EBITDA, EUR million	125.7	97.0	29.6	148.1
Investments total (excl. acquisitions), EUR million	23.5	22.5	4.7	32.4
Interest-bearing net debt, EUR million	250.5	203.3	23.2	219.8
Net working capital, EUR million	341.4	287.6	18.7	320.0
Average number of personnel during the period	11,860	10,834	9.5	10,998
Average number of shares outstanding, basic	57,216,307	59,582,689	-4.0	58,981,861
Average number of shares outstanding, diluted	57,510,240	60,162,574	-4.4	59,361,905
Number of shares outstanding	57,253,721	57,198,971	0.1	57,198,971

The period end exchange rates*:	28.9.2012	25.9.2011	Change %	30.12.2011
USD - US dollar	1.293	1.343	3.9	1.294
CAD - Canadian dollar	1.268	1.386	9.2	1.322
GBP - Pound sterling	0.798	0.872	9.3	0.835
CNY - Chinese yuan	8.126	8.580	5.6	8.159
SGD - Singapore dollar	1.585	1.752	10.5	1.682
SEK - Swedish krona	8.450	9.313	10.2	8.912
NOK - Norwegian krone	7.370	7.886	7.0	7.754
AUD - Australian dollar	1.240	1.384	11.6	1.272

The period average exchange rates*:	28.9.2012	25.9.2011	Change %	30.12.2011
USD - US dollar	1.281	1.408	9.9	1.393
CAD - Canadian dollar	1.284	1.375	7.1	1.376
GBP - Pound sterling	0.812	0.872	7.3	0.868
CNY - Chinese yuan	8.107	9.153	12.9	9.001
SGD - Singapore dollar	1.612	1.754	8.8	1.749
SEK - Swedish krona	8.728	9.005	3.2	9.029
NOK - Norwegian krone	7.510	7.804	3.9	7.794
AUD - Australian dollar	1.238	1.354	9.3	1.349

*Konecranes applies a weekly calendar in its financial reporting. The presented exchange rates are determined by rates on the last Friday of the period.

CONTINGENT LIABILITIES AND PLEDGED ASSETS

EUR million	30.9.2012	30.9.2011	30.12.2011
For own commercial obligations
Guarantees	381.6	415.0	371.2
Leasing liabilities
Next year	32.4	28.9	31.2
Later on	69.5	63.7	70.6
Other	0.0	0.0	0.0
Total	483.6	507.5	473.0

Leasing contracts comply with normal practices in the countries concerned.

Contingent liabilities relating to litigation

Various legal actions, claims and other proceedings are pending against the Group in various countries. These actions, claims and other proceedings are typical for this industry and consistent with a global business offering that encompasses a wide range of products and services. These matters involve contractual disputes, warranty claims, product liability (including design defects, manufacturing defects, failure to warn and asbestos legacy), employment, vehicles and other matters involving claims of general liability.

While the final outcome of these matters cannot be predicted with certainty Konecranes is of the opinion, based on the information available to date and considering the grounds presented for such claims, the available insurance coverage and the reserves made, that the outcome of such actions, claims and other proceedings, if unfavorable, would not have a material, adverse impact on the financial condition of the Group.

NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

EUR million	30.9.2012 Nominal value	30.9.2012 Fair value	30.9.2011 Nominal value	30.9.2011 Fair value	31.12.2011 Nominal value	31.12.2011 Fair value
Foreign exchange forward contracts	465.9	1.5	398.3	-0.1	479.0	-7.6
Currency options	0.0	0.0	41.9	-0.1	15.0	-0.1
Interest rate swaps	100.0	-3.0	0.0	0.0	70.0	-1.1
Electricity derivatives	1.9	-0.2	2.1	0.0	1.8	-0.2
Total	567.8	-1.7	442.2	-0.1	565.9	-9.0

Derivatives are used for hedging currency and interest rate risks, as well as the risk of electricity price fluctuations. The Company applies hedge accounting on the derivatives used to hedge cash flows in large projects in Business Area Equipment and to interest rates of certain long-term loans.

ACQUISITIONS

Konecranes completed two small acquisitions in crane service business during April-June 2012 when it acquired assets and operations of Deussen Andernach GmbH in Andernach, Germany and Ameritronic Industries, Inc in Indiana, USA.

During July - September Konecranes acquired the assets and operations of two small crane service companies: Re-Cranes, located in Prague, Czech Republic and Nea Lyfton, located in Örebro, Sweden.

The fair values of the identifiable assets and liabilities of the acquired business at the date of acquisition are summarized below.

	30.9.2012	30.9.2012	30.9.2012
	Recognized on acquisi	Fair value adjust	Acquired carrying
EUR million	tion	ments	value
Intangible assets
Clientele	1.6	1.6	0.0
Technology	0.0	0.0	0.0
Other intangible assets	0.0	0.0	0.0
Property, plant and equipment	0.3	0.0	0.3
Inventories	0.1	0.0	0.1
Account receivables and other assets	0.0	0.0	0.0
Cash and cash equivalents	0.0	0.0	0.0
Total assets	2.0	1.6	0.4
Deferred tax liabilities	0.3	0.3	0.0
Long- and short-term interest bearing debts	0.0	0.0	0.0
Account payables and other current liabilities	0.1	0.0	0.1
Total liabilities	0.4	0.3	0.1
Net assets	1.6	1.3	0.3
Purchase consideration transferred	1.6
Goodwill	0.0
Cash outflow on acquisition
Purchase consideration, paid in cash	1.5
Transactions costs*	0.0
Cash and cash equivalents in acquired companies	0.0
Net cash flow arising on acquisition	1.5
Purchase consideration:
Purchase consideration, paid in cash	1.5
Purchase consideration, liabilities assumed	0.1
Contingent consideration liability	0.0
Total purchase consideration	1.6

*Transaction costs of EUR 0.0 million have been expensed and are included in other operating expenses.

CONSOLIDATED STATEMENT OF INCOME, QUARTERLY

EUR million	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Sales	529.8	561.2	474.0	598.2	450.9	459.5	387.8
Other operating income	0.3	0.6	0.7	1.9	0.8	0.8	0.5
Depreciation and impairments	-10.2	-10.0	-9.7	-9.8	-9.5	-9.2	-8.6
Restructuring costs	0.0	0.0	0.0	-10.3	0.0	0.0	0.0
Other operating expenses	-483.0	-517.1	-441.0	-542.8	-416.2	-426.0	-361.2
Operating profit	37.0	34.7	24.0	37.2	26.0	25.1	18.5
Share of associates' and joint ventures' result	0.1	1.7	0.6	1.2	0.2	1.9	0.6
Financial income and expenses	0.0	-3.7	-4.1	-2.7	0.1	-4.9	-7.3
Profit before taxes	37.1	32.7	20.5	35.7	26.3	22.0	11.8
Taxes	-12.0	-9.8	-6.1	-12.7	-7.9	-6.7	-3.5
Net profit for the period	25.0	23.0	14.4	23.0	18.3	15.3	8.3

CONSOLIDATED BALANCE SHEET, QUARTERLY

EUR million ASSETS Q3/2012 Q2/2012 Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011 Goodwill 116.2 116.0 115.8 115.3 112.7 115.1 111.9 Intangible assets 73.5 77.4 76.9 81.6 86.3 89.8 88.3

Total assets	1,632.2	1,605.0	1,492.6	1,447.5	1,407.5	1,317.3	1,236.4
Total current assets	1,159.2	1,144.2	1,041.2	999.8	982.0	897.0	838.9
Cash and cash equivalents	111.8	167.7	107.8	72.7	113.5	93.8	98.2
Receivables and other current assets	634.4	585.0	545.1	579.6	510.5	486.6	449.6
Inventories	413.0	391.4	388.3	347.5	357.9	316.6	291.0
Total non-current assets	473.0	460.8	451.4	447.7	425.6	420.3	397.5
Other	151.3	135.8	131.2	125.3	108.5	102.0	94.2
Property, plant and equipment	132.1	131.6	127.6	125.4	118.2	113.5	103.0

EQUITY AND LIABILITIES

Total equity	448.3	425.3	391.9	435.4	405.2	434.4	413.2
Non-current liabilities	294.2	290.5	215.2	219.0	177.1	121.2	121.0
Provisions	48.3	48.7	50.8	54.1	45.4	46.5	46.8
Advance payments received	286.5	197.6	199.4	174.1	151.3	134.6	153.3
Other current liabilities	554.9	642.9	635.2	564.9	628.6	580.5	502.1
Total liabilities	1,183.9	1,179.7	1,100.7	1,012.1	1,002.3	882.9	823.2
Total equity and liabilities	1,632.2	1,605.0	1,492.6	1,447.5	1,407.5	1,317.3	1,236.4

CONSOLIDATED CASH FLOW STATEMENT - QUARTERLY

EUR million	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Operating income before change in net working capital	47.8	45.4	34.5	52.1	35.8	35.4	27.4
Change in net working capital	15.5	-16.5	-8.4	-31.4	-28.9	-44.3	-14.7
Financing items and taxes	-18.3	-11.6	-14.0	-10.4	-8.5	-18.6	-14.8
Net cash from operating activities	45.0	17.2	12.0	10.4	-1.6	-27.5	-2.1
Cash flow from investing activities	-19.6	-15.6	-12.8	-22.9	-41.6	-24.3	-36.9
Cash flow before financing activities	25.4	1.6	-0.8	-12.5	-43.1	-51.7	-39.0
Proceeds from options exercised and share issues	0.3	0.4	0.0	0.0	0.0	3.9	20.6
Purchase of treasury shares	0.0	0.0	0.0	-7.9	-43.3	0.0	0.0
Change of interest-bearing debt	-81.1	112.8	36.6	-23.9	104.9	103.5	22.0
Dividends paid to equity holders of the parent	0.0	-57.2	0.0	0.0	0.0	-60.0	0.0
Net cash used in financing activities	-80.8	56.0	36.6	-31.8	61.5	47.4	42.5
Translation differences in cash	-0.5	2.3	-0.6	3.5	1.3	-0.1	-3.7
Change of cash and cash equivalents	-55.9	59.9	35.2	-40.9	19.7	-4.4	-0.2
Cash and cash equivalents at beginning of period	167.7	107.8	72.7	113.5	93.8	98.2	98.5
Cash and cash equivalents at end of period	111.8	167.7	107.8	72.7	113.5	93.8	98.2
Change of cash and cash equivalents	-55.9	59.9	35.2	-40.9	19.7	-4.4	-0.2

QUARTERLY SEGMENT INFORMATION

EUR million

Orders received by Business Area	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Service 1)	182.4	183.7	187.6	183.3	157.8	186.3	167.2
Equipment	303.2	395.3	372.1	316.1	315.9	295.8	363.8
./. Internal	-27.6	-25.2	-25.2	-25.5	-15.3	-29.3	-20.1
Total	458.0	553.7	534.6	473.9	458.5	452.8	510.9

1) Excl. Service Contract Base

Order book by Business Area	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Service	154.9	155.6	146.7	135.1	136.5	144.3	125.8
Equipment	930.2	967.2	928.9	856.7	903.6	836.7	830.8
Total	1,085.1	1,122.8	1,075.6	991.8	1,040.1	981.0	956.6

Sales by Business Area	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Service	218.9	220.4	205.8	234.9	196.2	194.2	170.9
Equipment	341.6	374.8	293.4	394.4	277.6	288.9	240.5
./. Internal	-30.7	-33.9	-25.2	-31.1	-22.9	-23.6	-23.6
Total	529.8	561.2	474.0	598.2	450.9	459.5	387.8

Operating profit (EBIT) by Business
Area excluding restructuring costs	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Service	20.8	17.4	12.6	20.9	13.0	12.7	9.1
Equipment	21.9	22.6	15.7	31.5	18.3	18.0	14.0
Group costs and eliminations	-5.7	-5.3	-4.4	-4.9	-5.3	-5.5	-4.6
Total	37.0	34.7	24.0	47.5	26.0	25.1	18.5

Operating margin, (EBIT %) by

Business Area excluding
restructuring costs	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Service	9.5 %	7.9 %	6.1 %	8.9 %	6.6 %	6.5 %	5.3 %
Equipment	6.4 %	6.0 %	5.4 %	8.0 %	6.6 %	6.2 %	5.8 %
Group EBIT % total	7.0 %	6.2 %	5.1 %	7.9 %	5.8 %	5.5 %	4.8 %

Personnel by Business Area
(at the end of the period)	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Service	6,114	6,060	5,981	5,980	5,901	5,772	5,546
Equipment	5,936	5,805	5,714	5,621	5,476	5,349	5,104
Group staff	57	59	61	50	50	49	48
Total	12,107	11,924	11,756	11,651	11,427	11,170	10,698

Sales by market	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Europe-Middle East-Africa (EMEA)	254.3	268.6	230.1	294.0	238.5	219.3	199.0
Americas (AME)	179.1	188.6	148.7	174.8	128.4	127.2	118.5
Asia-Pacific (APAC)	96.4	104.0	95.2	129.4	83.9	112.9	70.2
Total	529.8	561.2	474.0	598.2	450.9	459.5	387.8

Personnel by region
(at the end of the period)	Q3/2012	Q2/2012	Q1/2012	Q4/2011	Q3/2011	Q2/2011	Q1/2011
Europe-Middle East-Africa (EMEA)	6,263	6,190	6,164	6,144	6,071	5,901	5,648
Americas (AME)	2,653	2,630	2,546	2,513	2,476	2,470	2,366
Asia-Pacific (APAC)	3,191	3,104	3,046	2,994	2,880	2,799	2,684
Total	12,107	11,924	11,756	11,651	11,427	11,170	10,698

Analyst and press briefing

An analyst and press conference will be held at restaurant Savoy´s Salicabinet (address: Eteläesplanadi 14, 7th floor) at 11.00 a.m. Finnish time. The Interim Report will be presented by Konecranes' President and CEO Pekka Lundmark and CFO Teo Ottola.

A live webcast of the conference will begin at 11.00 a.m. at www.konecranes.com. Please see the stock exchange release of October 9, 2012, for the conference call details.

Next report

Konecranes' Financial Statements Bulletin 2012 will be published on January 31, 2013.

KONECRANES PLC

Miikka Kinnunen Director, Investor Relations

ADDITIONAL INFORMATION

Mr. Pekka Lundmark, President and CEO, tel. +358 20 427 2000

Mr. Teo Ottola, Chief Financial Officer, tel. +358 20 427 2040

Mr. Miikka Kinnunen, Director, Investor Relations, tel. +358 20 427 2050

Mr. Mikael Wegmüller, Vice President, Marketing and Communications, tel. +358 20 427 2008

Distribution

NASDAQ OMX Helsinki Media www.konecranes.com

Konecranes is a world-leading group of Lifting Businesses™ serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2011, Group sales totaled EUR 1,896 million. The Group has 12,100 employees at 609 locations in 47 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).

www.konecranes.com