OREANDA-NEWS. Figures in brackets, unless otherwise stated, refer to the same period a year earlier.

FIRST QUARTER HIGHLIGHTS

- Order intake EUR 425.1 million (518.8), -18.1 percent; Service -0.8 percent and Equipment -28.9 percent.
- Order book EUR 1,035.6 million (1,111.1) at the end of March, 6.8 percent lower than a year ago.
- Sales EUR 458.6 million (474.9), -3.4 percent; Service -2.0 percent and Equipment -6.3 percent.
- Adjusted operating profit* EUR 14.8 million (14.2), 3.2 percent of sales (3.0).
- Adjustments* EUR -14.4 million (-2.3).
- Operating profit EUR 0.3 million (11.8), 0.1 percent of sales (2.5).
- Earnings per share (diluted) EUR -0.09 (0.10).
- Net cash flow from operating activities EUR -3.1 million (-54.4).
- Net debt EUR 206.9 million (199.4) and gearing 52.7 percent (46.8).

*Adjustments (earlier term non-recurring items included the same items affecting the operating profit) include restructuring costs, transaction costs relating to the proposed merger with Terex, and the unwarranted payments due to identity theft and fraudulent actions (only in the third quarter of 2015, not deducted by crime insurance indemnity). The corresponding terminology change has been made to the financial guidance. Konecranes’ management believes that the adjusted operating profit is relevant for understanding the financial performance when comparing the result for the current period with previous periods.

MARKET OUTLOOK

Customers are cautious about investing as economic growth has slowed down across the globe. Companies operating in emerging and commodity markets are particularly under pressure to save costs. Business activity in the North American manufacturing industry is showing signs of bottoming out. Demand situation in Europe is stable. The decline in the global container throughput has led to slower decision-making among container terminal operators.

FINANCIAL GUIDANCE

Based on the order book, the service contract base and the near-term demand outlook, the sales in 2016 are expected to be higher than in 2015. We expect the 2016 adjusted operating profit to improve from 2015.

KEY FIGURES

 1-3/2016

 1-3/2015

Change
%

 R12M

 2015

Orders received, MEUR

425.1

518.8

-18.1

1,871.8

1,965.5

Order book at end of period, MEUR

1,035.6

1,111.1

-6.8

  

1,036.5

Sales total, MEUR

458.6

474.9

-3.4

2,109.9

2,126.2

Adjusted EBITDA, MEUR *)

27.1

25.8

4.8

167.7

166.5

Adjusted EBITDA, % *)

5.9

5.4

  

7.9

7.8

Adjusted operating profit, MEUR *)

14.8

14.2

4.0

118.3

117.7

Adjusted operating margin, % *)

3.2

3.0

  

5.6

5.5

EBITDA, MEUR

14.3

24.6

-41.8

106.8

117.1

EBITDA, %

3.1

5.2

  

5.1

5.5

Operating profit, MEUR

0.3

11.8

-97.4

51.5

63.0

Operating margin, %

0.1

2.5

  

2.4

3.0

Profit before taxes, MEUR

-7.1

8.1

-187.8

40.3

55.4

Net profit for the period, MEUR

-5.1

5.6

-190.9

20.1

30.8

Earnings per share, basic, EUR

-0.09

0.10

-189.8

0.34

0.53

Earnings per share, diluted, EUR

-0.09

0.10

-189.9

0.34

0.53

Gearing, %

52.7

46.8

    

44.6

Return on capital employed %

      

7.4

9.5

Free cash flow, MEUR

-6.9

-62.6

  

54.3

-1.4

Average number of personnel during the period

11,748

11,944

-1.6

  

11,934

*) Adjustments in 2016 include transaction costs, which contain advisory, legal and consulting fees related to Konecranes Terex merger and restructuring costs. Full year 2015 adjustments included transaction costs, restructuring costs and the unwarranted payments due to the identity theft and fraudulent actions. See also note 12 in the interim report.

President and CEO Panu Routila:

“Our first-quarter figures were a reflection of tough market conditions, but there are signs of improving earnings capacity thanks to restructuring actions. Business Area Equipment order intake came in 29 percent below the last year’s level. The decline was entirely explained by the port cranes business; the port cranes order intake was low in the first three months of the year. Our recently announced shipyard crane order and offer base point to stronger port crane orders in the second quarter. Otherwise, the first-quarter orders received were basically flat overall in the other equipment businesses whereas order intake decreased by 1 percent from the previous year in Business Area Service.

Sales in Business Area Equipment fell 6 percent below last year’s level due to a lower order book for industrial cranes and timing of deliveries in the port cranes and lift trucks businesses. Despite the sales decline, its adjusted EBIT rose by EUR 4 million from the previous year, which shows that the restructuring and cost savings actions are showing results. Business Area Service’s sales decreased by 2 percent and adjusted EBIT by 12 percent on a year-on-year basis due to temporary business interruption related to the implementation of the new IT systems and processes, timing of deliveries and market softness in commodity driven industries, and changes in spare parts distribution, which affected deliveries during the quarter.

Our efficiency improvement actions and organizational changes announced in February are proceeding as planned, which will support the EBIT in the coming quarters. We expect the full-year 2016 sales growth to be generated in the second half of the year given the timing of port crane deliveries.”

DISCLOSURE PROCEDURE

Konecranes follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Konecranes Plc’s interim report January-March 2016. The complete report is attached to this release in pdf format and is also available on Konecranes’ website at www.konecranes.com.

Analyst and press briefing

An analyst and press conference will be held at the restaurant Savoy’s Salikabinetti (address: Etel?esplanadi 14) at 11.00 a.m. Finnish time. The Interim Report will be presented by Konecranes’ President and CEO Panu Routila 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 dated April 5, 2016 for the conference call details.

KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations

FURTHER INFORMATION
Mr. Panu Routila, 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 Wegm?ller, Vice President, Marketing and Communications, tel. +358 20 427 2008

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 2015, Group sales totaled EUR 2,126 million. The Group has 11,600 employees at 600 locations in 48 countries. Konecranes is listed on the Nasdaq Helsinki (symbol: KCR1V).

DISTRIBUTION
Nasdaq Helsinki
Media
www.konecranes.com

Forward Looking Statements 

This document contains forward-looking statements regarding future events, including statements regarding Terex or Konecranes, the transaction described in this document and the expected benefits of such transaction and future financial performance of the combined businesses of Terex and Konecranes based on each of their current expectations. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. When included in this document, the words “may,” “expects,” “intends,” “anticipates,” “plans,” “projects,” “estimates,” and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. Terex and Konecranes have based these forward-looking statements on current expectations and projections about future events. These statements are not guarantees of future performance.

Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond the control of Konecranes, include, among others: the ability of Terex and Konecranes to obtain shareholder approval for the transaction, the ability of Terex and Konecranes to obtain regulatory approval for the transaction, the possibility that the length of time required to complete the transaction will be longer than anticipated, the achievement of the expected benefits of the transaction, risks associated with the integration of the businesses of Terex and Konecranes, the possibility that the businesses of Terex and Konecranes may suffer as a result of uncertainty surrounding the proposed transaction, and other factors, risks and uncertainties that are more specifically set forth in Terex’s public filings with the SEC and Konecranes’ annual and interim reports. Konecranes disclaims any obligation to update the forward-looking statements contained herein.

IMPORTANT ADDITIONAL INFORMATION

This document relates to the proposed merger of Terex and Konecranes through which all of Terex common stock will be exchanged for Konecranes ordinary shares (or American depositary shares, if required). This document is for informational purposes only and does not constitute an offer to purchase or exchange, or a solicitation of an offer to sell or exchange all of Terex common stock, nor is it a substitute for  the Preliminary Prospectus included in the Registration Statement in Form F-4 (the “Registration Statement”) to be filed by Konecranes with the SEC, the Prospectus/Proxy to be filed by Terex with the SEC, the listing prospectus of Konecranes to be filed by Konecranes with the Finnish Financial Supervisory Authority (and as amended and supplemented from time to time, the “Merger Documents”). No offering of securities shall be made in the United States, except by means of a prospectus meeting the requirements of section 10 of the U.S. Securities Act of 1933.

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE MERGER DOCUMENTS AND ALL OTHER RELEVANT DOCUMENTS THAT KONECRANES OR TEREX HAS FILED OR MAY FILE WITH THE SEC, NASDAQ HELSINKI, OR FINNISH FINANCIAL SUPERVISORY AUTHORITY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION THAT INVESTORS AND SECURITY HOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING THE PROPOSED MERGER.

The information contained in this document must not be published, released or distributed, directly or indirectly, in any jurisdiction where the publication, release or distribution of such information is restricted by laws or regulations. Therefore, persons in such jurisdictions into which these materials are published, released or distributed must inform themselves about and comply with such laws or regulations. Konecranes and Terex do not accept any responsibility for any violation by any person of any such restrictions. The Merger Documents and other documents referred to above, if filed or furnished by Konecranes or Terex with the SEC, as applicable, will be available free of charge at the SEC’s website (www.sec.gov) or can be requested by writing to Anna-Mari Kautto, Investor Relations Assistant, Konecranes Plc, P.O. Box 661, FI-05801 Hyvink??, Finland or Elizabeth Gaal, Investor Relations Associate, Terex, 200 Nyala Farm Road, Westport, CT 06880, USA.

Konecranes and Terex and their respective directors, executive officers and employees, and other persons may be deemed to be participants in the solicitation of proxies in respect of the transaction. Information regarding Konecranes' directors and executive officers is available in Konecranes’ annual report for fiscal year 2015 at www.konecranes.com. Information about Terex directors and executive officers and their ownership of the Terex ordinary shares is available in its Schedule 14A filed with the SEC on April 1, 2016. Other information regarding the interests of such individuals as well as information regarding Konecranes and Terex directors and officers will be available in the proxy statement/prospectus when it becomes available. These documents can be obtained free of charge from the sources indicated above.