Half-year Financial Report of
Orders and sales grew in all regions, margin expansion continued
April-
- Orders received grew by 16.2% to
EUR 2,410.7 (4-6/2020: 2,075.4) million. At comparable exchange rates, orders grew by 17.2%. -
Sales grew by 11.0% to
EUR 2,810.8 (2,532.1) million. At comparable exchange rates, sales grew by 12.7%. -
Operating income (EBIT) was
EUR 367.1 (315.5) million or 13.1% (12.5%) of sales. The adjusted EBIT wasEUR 374.0 (324.6) million or 13.3% (12.8%) of sales.* -
Cash flow from operations (before financing items and taxes) was
EUR 513.2 (592.3) million.
January-
- Orders received grew by 7.2% to
EUR 4,486.6 (1-6/2020: 4,184.7) million. At comparable exchange rates, orders grew by 9.3%. -
Sales grew by 8.6% to
EUR 5,137.3 (4,730.3) million. At comparable exchange rates, sales grew by 11.0%. -
Operating income (EBIT) was
EUR 616.9 (512.7) million or 12.0% (10.8%) of sales. The adjusted EBIT wasEUR 623.9 (530.2) million or 12.1% (11.2%) of sales.* -
Cash flow from operations (before financing items and taxes) was
EUR 938.6 (939.2) million.
Business outlook for 2021 (specified)
In 2021,
4-6/2021 | 4-6/2020 | Change | 1-6/2021 | 1-6/2020 | Change | 1-12/2020 | ||
Orders received | MEUR | 2,410.7 | 2,075.4 | 16.2% | 4,486.6 | 4,184.7 | 7.2% | 8,185.1 |
Order book | MEUR | 8,272.5 | 8,307.3 | -0.4% | 7,728.8 | |||
Sales | MEUR | 2,810.8 | 2,532.1 | 11.0% | 5,137.3 | 4,730.3 | 8.6% | 9,938.5 |
Operating income | MEUR | 367.1 | 315.5 | 16.3% | 616.9 | 512.7 | 20.3% | 1,212.9 |
Operating income margin | % | 13.1 | 12.5 | 12.0 | 10.8 | 12.2 | ||
Adjusted EBIT* | MEUR | 374.0 | 324.6 | 15.2% | 623.9 | 530.2 | 17.7% | 1,250.5 |
Adjusted EBIT margin* | % | 13.3 | 12.8 | 12.1 | 11.2 | 12.6 | ||
Income before tax | MEUR | 372.1 | 315.3 | 18.0% | 624.3 | 512.6 | 21.8% | 1,224.2 |
Net income | MEUR | 288.3 | 244.4 | 18.0% | 483.8 | 397.2 | 21.8% | 947.3 |
Basic earnings per share | EUR | 0.55 | 0.47 | 17.6% | 0.92 | 0.76 | 21.1% | 1.81 |
Cash flow from operations (before financing items and taxes) | MEUR | 513.2 | 592.3 | 938.6 | 939.2 | 1,907.5 | ||
Interest-bearing net debt | MEUR | -1,501.4 | -1,330.2 | -1,953.8 | ||||
Equity ratio | % | 38.4 | 40.8 | 45.5 | ||||
Return on equity | % | 33.3 | 27.0 | 29.7 | ||||
Net working capital (including financing items and taxes) | MEUR | -1,311.0 | -1,057.7 | -1,160.1 | ||||
Gearing | % | -57.3 | -49.4 | -61.1 |
*
"The second quarter was characterized by strong financial performance and solidifying market recovery. Activity remained high in
Developing smart and sustainable solutions that adapt to future needs is central to ensuring that we remain our customers' partner of choice. The DX class elevator rollout is progressing well, and we have actively introduced enhancements to the related offering for both new equipment and modernization. The momentum for 24/7 Connected services continued to improve, with strong growth in all regions during the quarter. To ensure that we remain competitive in the eyes of our customers, we will continue to invest into connecting new solutions and services to our elevators and escalators. These solutions can cost-efficiently be tailored to the specific needs of our customers thanks to our digital platform and application programming interfaces. An example of this is the connected wheelchair concept - a solution, which provides wheelchair users with improved access and better mobility.
Ensuring the success of our 'Sustainable success with customers' strategy requires empowered people and loyal customers. During the quarter we conducted our annual employee engagement and customer loyalty surveys. The results for both were positive. Our employees continue to see
With six months behind us we have specified our business outlook for the year. Thanks to strong sales momentum, we now expect full year to sales to grow by 4-6%. However, the effects of the inflationary cost environment will be increasingly visible in the coming quarters. Consequently, we expect the adjusted EBIT margin to be 12.4-13.0%. We have initiated actions to raise prices in several markets to counteract the margin headwinds we face, and I am encouraged to also see broader signs of improving market prices. This, together with our continuous focus on productivity and differentiation through value adding solutions, provides a solid foundation for future performance."
Operating environment in April-
Recovery continued in the global elevator and escalator market during the second quarter of 2021. Activity was strongest in the residential segment.
Demand in the new equipment market increased all around the world from a comparison period which was strongly impacted by the COVID-19 pandemic. In
In the service market, maintenance activity started to normalize and demand picked up also in modernization.
The pricing environment continued to be adversely affected by intense competition. That said, market prices started to improve towards the end of the quarter.
Operating environment in January-
Although the global elevator and escalator market continued to be impacted by the COVID-19 pandemic during the first half of 2021, the signs of recovery seen in the early part of the year solidified during the second quarter. In the residential segment, activity was supported by the demand for affordable housing, while stimulus measures boosted sentiment in the infrastructure segment. Activity in the commercial segment remained limited.
Demand in the new equipment market increased clearly. In
In the service market, maintenance activity was resilient and started to normalize towards the end of the first half. In modernization, markets were still impacted by delayed decision-making in the first quarter, but demand started to pick up in the second quarter.
The pricing environment continued to be adversely affected by intense competition. That said, market prices started to improve towards the end of the period.
Market outlook 2021 (updated)
In
With normalizing maintenance activity around the world, the maintenance markets are expected to grow clearly in
Similarly, the modernization markets are expected to grow across all areas with the strongest growth in
Business outlook 2021 (specified)
In 2021,
The key headwinds for 2021 results are the increased component and logistics costs.
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: 1989111
For further information, please contact:
Sender:
President and CEO
CFO
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