2014-10-21 11:30:00 CEST
2014-10-21 11:31:02 CEST
REGULATED INFORMATION
KONE Oyj - Interim report (Q1 and Q3)
Interim Report of KONE Corporation for January-September 2014
KONE Corporation, stock exchange release, October 21, 2014 at 12:30 p.m. EET
Interim Report of KONE Corporation for January-September 2014
KONE's Q3: Strong orders received and positive development overall
July-September 2014
* In July-September 2014, orders received totaled EUR 1,577 (7-9/2013: 1,327)
million. Orders received grew by 18.8% at historical exchange rates and by
17.4% at comparable exchange rates.
* Net sales grew by 8.0% to EUR 1,878 (1,739) million. At comparable exchange
rates the growth was 7.9%.
* Operating income was EUR 277.5 (257.5) million or 14.8% (14.8%) of net
sales.
* Cash flow from operations (before financing items and taxes) was EUR 372.1
(349.0) million.
* KONE specifies its outlook for 2014. KONE's net sales is estimated to grow
by 6-8% at comparable exchange rates as compared to 2013. The operating
income (EBIT) is expected to be in the range of EUR 1,015-1,045 million.
KONE previously estimated its net sales to grow by 6-9% at comparable
exchange rates as compared to 2013. The previous operating income (EBIT)
outlook was EUR 1,000-1,050 million assuming that translation exchange rates
would not materially deviate from the situation of the beginning of 2014.
January-September 2014
* In January-September 2014, orders received totaled EUR 5,109 (1-
9/2013: 4,678) million. Orders received grew by 9.2% at historical exchange
rates and by 12.3% at comparable exchange rates. The order book stood at EUR
6,996 (Sep 30, 2013: 5,642) million at the end of September 2014.
* Net sales grew by 5.5% to EUR 5,169 (4,900) million. At comparable exchange
rates the growth was 7.9%.
* Operating income was EUR 720.4 (660.7) million or 13.9% (13.5%) of net
sales.
* Cash flow from operations (before financing items and taxes) was EUR 977.6
(972.2) million.
Key Figures
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2014 2013 2014 2013 2013
-------------------------------------------------------------------------------
Orders received MEUR 1,577.2 1,327.2 5,108.8 4,677.8 6,151.0
Order book MEUR 6,995.8 5,642.1 6,995.8 5,642.1 5,587.5
Sales MEUR 1,877.9 1,739.2 5,168.6 4,899.6 6,932.6
Operating income (EBIT) MEUR 277.5 257.5 720.4 660.7 953.4
Operating income (EBIT) % 14.8 14.8 13.9 13.5 13.8
Cash flow from operations
(before financing items and
taxes) MEUR 372.1 349.0 977.6 972.2 1,213.1
Net income MEUR 215.2 207.8 563.2 527.3 713.1
Basic earnings per share EUR 0.41 0.40 1.07 1.01 1.37
Interest-bearing net debt MEUR -767.3 -817.7 -767.3 -817.7 -622.0
Total equity/total assets % 41.5 45.2 41.5 45.2 43.7
Gearing % -41.9 -43.4 -41.9 -43.4 -36.1
Henrik Ehrnrooth, President & CEO, in conjunction with the review:"We continued our solid performance in the third quarter. I am particularly
pleased with our strong order intake of EUR 1,577 million, which represented a
growth of 18.8%, as well as our very strong cash flow of EUR 372.1 million. Our
orders received grew in all regions. New equipment orders developed very
positively with good development in the volume business and an exceptionally
strong development in major projects.
Our sales developed also well, totaling EUR 1,878 million, with a growth of
8.0%. Sales grew in all businesses. On a regional basis, growth was the
strongest in Asia-Pacific. Also the EMEA region saw some growth. In North
America, our sales was stable. Operating income grew and was EUR 277.5 million.
Our growth continued to be profitable and the operating margin was at last
year's level at 14.8%.
We saw no major changes in the market environment during the third quarter. The
Chinese new equipment market continued to grow well, although the development
varied clearly between regions within the country. The rest of Asia-Pacific saw
a mixed development. In North America, good development continued with the
United States developing particularly well. In Europe, uncertainty in the market
increased again somewhat. Pricing competition remained intense in many markets
both in new equipment and in services. I want to thank our employees for
continuously delivering good results in these varying market situations.
To sustain our good development in the current environment, we continue to work
on further improving our understanding of the markets at a granular level as
well as on driving our sales activities. We also have strong focus on developing
the cost competitiveness of our products and on managing fixed costs.
Our development programs are progressing well. As a good example, the focus on
customer experience has resulted in improving customer loyalty, as we could see
in the results of our most recent customer loyalty survey, which was finalized
during the quarter. What is important for us going forward is to further improve
our interaction with our customers - both in terms of customer communication and
in receiving feedback from them. This helps us in serving our customers better
and strengthening our differentiation."
Operating environment in July-September 2014
In the third quarter of 2014, good growth in the global new equipment market
continued. Markets in Asia-Pacific and North America continued to grow, while
the development in the Europe, Middle East and Africa (EMEA) region was mixed.
The major projects segment was rather stable compared to the previous year, with
good activity in North America, China and the Middle East but a weaker
development in Europe. The modernization market was rather weak overall in
Europe, developed positively in North America and saw some growth also in Asia-
Pacific. Maintenance markets grew globally, although at low rates in such
countries, where new equipment activity has been weak for the past years.
Operating environment in January-September 2014
During January-September 2014, the new equipment market in Asia-Pacific
continued to grow, driven by clear growth in China. In the EMEA region, the
development of new equipment markets was varied. The market grew slightly in
Central and North Europe and saw positive development in the Middle East, but
remained on a declining trend in South Europe. In North America, strong
development in new equipment demand continued. In modernization, the market in
Central and North Europe saw some growth, but declined in South Europe. In North
America the modernization market developed very positively, and growth was seen
also in Asia-Pacific. The maintenance market continued to grow globally, driven
by Asia-Pacific following the positive development of the new equipment market
in the region. The pricing environment was challenging in all businesses, in
particular in countries suffering from a prolonged weakness in the new equipment
market.
Market outlook 2014
In new equipment, the market in Asia-Pacific is expected to grow clearly in
2014. The market in China is expected to grow by approximately 10%. The market
in the EMEA region is expected to grow slightly. In Central and North Europe,
the market is expected to remain stable or grow slightly, to further slightly
decline in South Europe, and to grow in the Middle East. The market in North
America is expected to continue to grow.
The modernization market is expected to be rather stable or grow slightly.
The maintenance markets are expected to develop rather well in most countries.
Business outlook 2014
KONE specifies its outlook for 2014.
KONE's net sales is estimated to grow by 6-8% at comparable exchange rates as
compared to 2013.
The operating income (EBIT) is expected to be in the range of EUR 1,015-1,045
million.
Previous business outlook
KONE's net sales is estimated to grow by 6-9% at comparable exchange rates as
compared to 2013.
The operating income (EBIT) is expected to be in the range of EUR 1,000-1,050
million, assuming that translation exchange rates do not materially deviate from
the situation of the beginning of 2014.
Press and analyst meetings
A meeting for the press, conducted in Finnish, will be held on Tuesday, October
21, 2014 at 2:15 p.m. EET.
A meeting for analysts, conducted in English, will begin at 3:45 p.m. EET. The
meeting will be available as a live webcast on www.kone.com. The meeting
participants can also join a telephone conference that will be arranged in
conjunction with the meeting. The telephone conference details can be found
below.
Both meetings will take place in the KONE Building, located at Keilasatama 3,
Espoo, Finland.
Telephone conference numbers:
US callers: +1 334 323 6203
UK callers: +44 (0)207 1620 177
Finnish callers: +358 (0)9 2313 9202
Participant code: KONE
An on-demand version of the webcast will be available on www.kone.com later the
same day.
For further information, please contact:
Katri Saarenheimo, Director, Investor Relations, tel. +358 (0) 204 75 4705
Sender:
KONE Corporation
Henrik Ehrnrooth
President and CEO
Eriikka Söderström
CFO
About KONE
KONE is one of the global leaders in the elevator and escalator industry. KONE's
objective is to offer the best People Flow® experience by developing and
delivering solutions that enable people to move smoothly, safely, comfortably
and without waiting in buildings in an increasingly urbanizing environment. KONE
provides industry-leading elevators, escalators, automatic building doors and
integrated solutions to enhance the People Flow in and between buildings. KONE's
services cover the entire lifetime of a building, from the design phase to
maintenance, repairs and modernization solutions. In 2013, KONE had annual net
sales of EUR 6.9 billion, and at the end of the year over 43,000 employees. KONE
class B shares are listed on the NASDAQ OMX Helsinki Ltd in Finland.
www.kone.com
[HUG#1864387]
© 2024 Nasdaq, Inc. All Rights Reserved |