KONE Corporation, stock exchange release, July 14, 2022 at 8.30 am EEST
KONE lowers full year sales and adjusted EBIT outlook and provides preliminary key figures for the second quarter
The demand environment remained healthy in most areas during the second quarter and our services business development continued to be strong. However, KONE's second quarter net sales and adjusted EBIT were significantly impacted by the COVID-19 lockdowns in China which resulted in China's net sales declining by close to 40% at comparable currencies. Operations in China have been fully ramped up in June and are running at normal levels. While we expect a recovery during the second half of 2022, we have lowered our full year sales and adjusted EBIT outlook. This is a result of weak second quarter deliveries and somewhat weaker than anticipated new equipment market outlook in China.
Revised business outlook for 2022:
KONE expects its sales growth in 2022 to be in the range of -1% to +3% at comparable exchange rates as compared to 2021. The adjusted EBIT is expected to be in the range of EUR 1,130-1,210 million, assuming that foreign exchange rates would remain at the July 2022 level. Foreign exchange rates are estimated to impact EBIT positively by around EUR 80 million.
Previous business outlook for 2022:
KONE estimates that in 2022, its sales growth will be in the range of 2% to 5% at comparable exchange rates as compared to 2021. The adjusted EBIT is expected to be in the range of EUR 1,180-1,280 million, assuming that foreign exchange rates would remain at the April 2022 level. Foreign exchange rates are estimated to impact EBIT positively by around EUR 70 million. The outlook is dependent on the COVID-19 restrictions in China being lifted during the second quarter and a rapid recovery thereafter.
Preliminary key figures
| EUR million | 4-6/2022 | Change | Comparable change | 1-6/2022 | Change | Comparable change |
| Orders received |
2,609.0 |
8.2% |
0.6% |
5,031.7 |
12.1% |
5.2% |
| Sales |
2,555.1 |
-9.1% |
-15.2% |
4,997.0 |
-2.7% |
-8.5% |
|
New equipment |
1,213.3 |
-24.1% |
-30.1% |
2,373.1 |
-15.2% |
-21.3% |
|
Maintenance |
960.3 |
13.1% |
7.6% |
1,885.6 |
12.9% |
8.2% |
|
Modernization |
381.5 |
5.3% |
-0.5% |
738.3 |
10.2% |
5.0% |
| Operating income |
189.0 |
-48.5% | | 360.2 |
-41.6% | |
| Operating income margin, % |
7.4 | | |
7.2 | | |
| Adjusted EBIT |
209.3 |
-44.0% | | 405.8 |
-35.0% | |
| Adjusted EBIT margin, % |
8.2 | | |
8.1 | | |
KONE will publish its Half-year Financial Report for January-June 2022, on Wednesday, July 20, 2022, at 12:30 p.m. EEST. There will be a webcast and teleconference on the same day with the opportunity to ask questions. The webcast and teleconference details will be published on KONE's website at http://www.kone.com/en/investors/.
For further information, please contact:
Natalia Valtasaari, Head of Investor Relations, KONE Corporation, tel. +358 204 75 4705
Sender:
KONE Corporation
Henrik Ehrnrooth
President and CEO
Ilkka Hara
CFO
About KONE
At KONE, our mission is to improve the flow of urban life. As a global leader in the elevator and escalator industry, KONE provides elevators, escalators and automatic building doors, as well as solutions for maintenance and modernization to add value to buildings throughout their life cycle. Through more effective People Flow®, we make people's journeys safe, convenient and reliable, in taller, smarter buildings. In 2021, KONE had annual sales of EUR 10.5 billion, and at the end of the year over 60,000 employees. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.
www.kone.com
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