Financial Statement Bulletin of
Strong year in orders and sales; supply chain environment remains challenging
October-
- Orders received grew by 4.2% to
EUR 2,155.1 (10-12/2020: 2,068.7) million. At comparable exchange rates, orders grew by 0.4%. -
Sales grew by 5.6% to
EUR 2,766.8 (2,621.2) million. At comparable exchange rates, sales grew by 1.8%. -
Operating income (EBIT) was
EUR 351.9 (367.1) million or 12.7% (14.0%) of sales. The adjusted EBIT wasEUR 359.4 (380.6) million or 13.0% (14.5%) of sales.* -
Cash flow from operations (before financing items and taxes) was
EUR 525.0 (368.1) million.
January-
- Orders received grew by 8.2% to
EUR 8,852.8 (1-12/2020: 8,185.1) million. At comparable exchange rates, orders grew by 7.4%. -
Sales grew by 5.8% to
EUR 10,514.1 (9,938.5) million. At comparable exchange rates, sales grew by 5.3%. -
Operating income (EBIT) was
EUR 1,295.3 (1,212.9) million or 12.3% (12.2%) of sales. The adjusted EBIT wasEUR 1,309.8 (1,250.5) million or 12.5% (12.6%) of sales.* -
Cash flow from operations (before financing items and taxes) was
EUR 1,828.7 (1,907.5) million. -
The Board proposes a dividend of
EUR 1.75 per class B share for the year 2021. Further the Board proposes an extraordinary dividend ofEUR 0.35 per class B share and therefore the total proposed dividend isEUR 2.10 per class B share.
Business outlook for 2022
10-12/2021 | 10-12/2020 | Change | 1-12/2021 | 1-12/2020 | Change | ||
Orders received | MEUR | 2,155.1 | 2,068.7 | 4.2% | 8,852.8 | 8,185.1 | 8.2% |
Order book | MEUR | 8,564.0 | 7,728.8 | 10.8% | |||
Sales | MEUR | 2,766.8 | 2,621.2 | 5.6% | 10,514.1 | 9,938.5 | 5.8% |
Operating income | MEUR | 351.9 | 367.1 | -4.1% | 1,295.3 | 1,212.9 | 6.8% |
Operating income margin | % | 12.7 | 14.0 | 12.3 | 12.2 | ||
Adjusted EBIT* | MEUR | 359.4 | 380.6 | -5.6% | 1,309.8 | 1,250.5 | 4.7% |
Adjusted EBIT margin* | % | 13.0 | 14.5 | 12.5 | 12.6 | ||
Income before tax | MEUR | 360.1 | 372.5 | -3.3% | 1,320.8 | 1,224.2 | 7.9% |
Net income | MEUR | 278.1 | 287.2 | -3.2% | 1,022.7 | 947.3 | 7.9% |
Basic earnings per share | EUR | 0.53 | 0.55 | -2.6% | 1.96 | 1.81 | 7.9% |
Cash flow from operations (before financing items and taxes) | MEUR | 525.0 | 368.1 | 1,828.7 | 1,907.5 | ||
Interest-bearing net debt | MEUR | -2,164.1 | -1,953.8 | ||||
Equity ratio | % | 41.2 | 45.5 | ||||
Return on equity | % | 32.0 | 29.7 | ||||
Net working capital (including financing items and taxes) | MEUR | -1,468.2 | -1,160.1 | ||||
Gearing | % | -67.6 | -61.1 |
*
"The year 2021 ended on a positive note in many areas. Overall, it was an unusual year because of the significant disruptions in the global supply chain and the sharp increases in material and component costs. We managed the challenging situation strongly and were constantly able to deliver on customer promises. Our result for the year was good considering the significant headwinds that we faced. The actions that we have taken to offset these headwinds are progressing well, resulting in the sequential improvement in our margin of orders received during the fourth quarter. Improving pricing, securing productivity gains and lowering product costs remains high on our agenda.
Orders received in the quarter reached the previous year's high level, thanks to growth in the new equipment business. This was a good achievement considering the impact of liquidity constraints on the Chinese property markets. Our service business delivered strong performance yet again across several fronts. In the maintenance business, the service base continued to grow and both pricing and value-added services contributed to the strong growth in sales. I would like to thank everyone in our organization for their dedication and outstanding work during what has once again proved to be an exceptional year.
We have executed well on our 'Sustainable success with customers' strategy during its initial year. Driving differentiation through adaptability, user experience and sustainability has been at the core of our strategic ambitions. With this strategic phase, we are further accelerating this development. Our DX Class elevators have raised the bar for delivering value-added services through digital solutions. This provides improved user experiences and a new level of adaptability for building owners when they need to adjust their building to evolving needs. The
We have long seen that sustainability contributes to superior business outcomes. The renewal of
Looking at 2022, our demand outlook is positive with expectations for growth in the service markets and in the new equipment markets outside
Operating environment in October-
Recovery continued in the global elevator and escalator market during October-December. That said, market activity was somewhat impacted by global supply chain constraints and increasing cases of COVID-19 infections, which resulted in a slowdown in decision-making.
Activity in the new equipment market was broadly in line with that of the previous year, albeit with varied trends in regional demand. In
The service market developed positively with broad based growth in both maintenance and modernization.
The pricing environment remained adversely affected by intense competition. That said, market prices continued to improve in several areas as a response to the increased component and logistics costs.
Operating environment in January-
Activity in the global elevator and escalator markets was somewhat affected by the COVID-19 pandemic in the early part of the year, but recovered thereafter. However, global supply chain constraints affected the pace of the recovery in the second half. Throughout the year, activity was the strongest in the residential segment across all regions. The sentiment in the infrastructure segment was somewhat boosted by stimulus, whereas activity in the commercial segment remained limited.
Demand in the new equipment market increased clearly from 2020, when markets in most regions were heavily impacted by the pandemic. In
In the service market, maintenance activity picked up as of the second quarter and was largely at pre-COVID levels at the end of the year. Similarly, demand rebounded in modernization after a slow start to the year.
The pricing environment continued to be adversely affected by intense competition. That said, market prices started to improve in several areas in the second half of the year as a response to the increased component and logistics costs.
Market outlook 2022
The Chinese new equipment market is expected to remain solid although below that of 2021 due to the tightened liquidity situation in the property markets. In the rest of the world, the new equipment markets are expected to continue recovering. In
Modernization markets are expected to grow across regions supported by pent-up demand and stimulus measures.
Continuing global supply chain constraints and potential labor shortages may limit growth in construction activity, which could impact demand in the new equipment and modernization markets.
Maintenance activity is expected to return to pre-pandemic growth trajectory with slight growth in the more mature markets and clear growth in
Business outlook 2022
The key headwinds for the 2022 results are increased material, component and logistics costs, as well as the competitive dynamics and liquidity constraints in
The Board's proposal for the distribution of profit
The parent company's non-restricted equity on
Press and analyst meetings
A Microsoft Teams call for the press, conducted in English, will be held on
A webcast for analysts, conducted in English, will begin at
Participant code: 2714403
For further information, please contact:
Sender:
President and CEO
CFO
About
At
www.kone.com
https://news.cision.com/kone-oyj/r/financial-statement-bulletin-january-december-2021,c3497251
https://mb.cision.com/Main/18027/3497251/1528663.pdf
(c) 2022 Cision. All rights reserved., source