Profit declined 76 percent to $7.5 million, or 25 cents per share, from $30.8 million, or $1.01 per share, in the same period last year.
The latest quarter included 25 cents per share in restructuring charges.
Revenue declined 23 percent to $148.2 million from $193.6 million.
Chief Executive Jouni Salo said the third quarter showed signs of improvement both in order intake and operating income.
The company also will record lower-than-expected restructuring charges, Salo said.
Shares of KHD soared $1.89, or 19.5 percent, to $11.59 in afternoon trading. The stock has ranged from $6.50 to $13.59 over the past year.
