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Konecranes sees no big jump in 2015 profit

HELSINKI, September 19, 2015

Finnish crane maker Konecranes said its operating profit will be roughly the same as last year's due to lower than expected equipment deliveries.

The company said its 2015 operating profit would be around 2014's 119 million euros ($134.65 million), and would not rise as it had forecast.

"The consensus among analysts was that Konecranes' core operating profit would grow more than 16 percent," Juha Kinnunen, equity research analyst at Inderes, said. "So, it's not a surprise that the shares are taking a hit today."

Kinnunen said demand for crane equipment had fallen in emerging markets, particularly in South East Asia, due to the economic slowdown in China.

"Businesses in the developing countries are not investing right now," he said. "There's also weakness in the US due to lower oil prices. What's more, the dollar has strengthened from last year, which is not helping industrial investments either," he added.

Konecranes last month announced an all-share merger with US competitor Terex, with an expected closing date of early 2016.-Reuters




Tags: profit | Konecranes |

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