Group sales of KCI Konecranesof Finland increased by 25% in 1997 to FIM 3,076m ($560m).
The Special Cranes business saw the highest growth rate of all KCI divisions, jumping 36%, though margins were held back by capacity constraints, the company said.
Net income was up 19% to FIM 234.4m ($43m). By region the fastest sales increase occurred in the Americas and Western Europe. Asia-Pacific also posted good figures as an unusually large amount of project deliveries occurred during the year.
The number of cranes under service contract, which the company described as the best indicator of future maintenance service growth, grew by 25%.
KCI president and CEO Stig Gustavson said: “1997 was a remarkable year for KCI Konecranes. There was strong growth in all aspects of corporate activity. Sales growth of 25.2 % was achieved mainly organically, as only two new businesses (with 2.9 % of total sales) were consolidated into Group numbers during the year.” The French company Copas ALM was acquired in 1997. The German company MAN SWF Krantechnik GmbH, the acquisition of which was agreed in 1996, was finally taken over in July 1997.
“Acquisitions will continue to be a cornerstone in group strategy,” said Gustavson. “We are constantly reviewing various prospects presented to us.” He also said that further improvements in output from the Special Cranes division could be expected.“Sales growth was to some extent limited because of capacity constraints,” Gustavson said.
“The Group embarked on an ambitious investment program which, when completed during spring 1998, will make it possible to grow the Special Cranes output by up to 50%.” He continued: “During 1997 capacity constraints were handled through increased subcontracting. This naturally took its toll on Special Cranes’ margins and some shipments were delayed.”
