2016-07-19 11:30:36 CEST
2016-07-19 11:30:36 CEST
REGULATED INFORMATION
KONE Oyj - Half Year financial report
Interim Report of KONE Corporation for January-June 2016
KONE Corporation, stock exchange release, July 19, 2016 at 12.30 p.m. EEST
Interim Report of KONE Corporation for January-June 2016
April-June 2016: Strong execution and profitable sales growth
* In April-June 2016, orders received totaled EUR 2,068 (4-6/2015: 2,193)
million. Orders received declined by 5.7% at historical exchange rates and
by 1.9% at comparable exchange rates.
* Net sales grew by 2.8% to EUR 2,273 (2,210) million. At comparable exchange
rates the growth was 6.0%.
* Operating income (EBIT) was EUR 348.6 (325.2) million or 15.3% (14.7%) of
net sales.
* Cash flow from operations (before financing items and taxes) was EUR 393.3
(426.0) million.
* KONE slightly upgrades its operating income (EBIT) outlook for 2016. In
2016, KONE's net sales is estimated to grow by 2-6% at comparable exchange
rates as compared to 2015. The operating income (EBIT) is expected to be in
the range of EUR 1,250-1,330 million, assuming that translation exchange
rates would remain at approximately the average level of January-June 2016.
KONE's previous outlook for its operating income (EBIT) was EUR 1,220-1,320
million, assuming that translation exchange rates would have remained at
approximately the average level of January-March 2016.
January-June 2016: Solid operating performance
* In January-June 2016, orders received totaled EUR 4,010 (1-6/2015: 4,247)
million. Orders received declined by 5.6% at historical exchange rates and
by 3.1% at comparable exchange rates. The order book stood at EUR 8,764
(June 30, 2015: 8,627 million) at the end of June 2016.
* Net sales grew by 3.1% to EUR 4,021 (3,901) million. At comparable exchange
rates the growth was 5.2%.
* Operating income was EUR 570.0 (537.1) million or 14.2% (13.8%) of net
sales.
* Cash flow from operations (before financing items and taxes) was EUR 699.0
(638.2) million.
Key figures
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
-----------------------------------------------------------------------------
Orders received MEUR 2,067.8 2,193.5 4,010.1 4,247.3 7,958.9
Order book MEUR 8,763.6 8,627.4 8,763.6 8,627.4 8,209.5
Sales MEUR 2,272.6 2,210.4 4,020.9 3,901.2 8,647.3
Operating income (EBIT) MEUR 348.6 325.2 570.0 537.1 1,241.5
Operating income (EBIT) % 15.3 14.7 14.2 13.8 14.4
Cash flow from operations
(before financing items and
taxes) MEUR 393.3 426.0 699.0 638.2 1,473.7
Net income MEUR 276.6 266.0 464.7 417.1 1,053.1
Basic earnings per share EUR 0.54 0.51 0.90 0.80 2.01
Interest-bearing net debt MEUR -1,145.4 -955.3 -1,145.4 -955.3 -1,512.6
Total equity/total assets % 40.2 40.7 40.2 40.7 45.4
Gearing % -52.4 -46.9 -52.4 -46.9 -58.7
Henrik Ehrnrooth, President and CEO, in conjunction with the review:
"Our strong execution and profitable sales growth continued during the second
quarter. Orders grew in all other regions apart from China, where they declined
significantly. Orders received declined by 5.7% at historical and 1.9% at
comparable rates, but they were at a high level of EUR 2,068 million. Sales was
EUR 2,273 million with a solid growth rate of 2.8% at historical and 6.0% at
comparable rates. The operating income developed very positively in the quarter,
reaching EUR 348.6 million. The relative operating income improved to 15.3% of
net sales. Our cash flow remained strong at EUR 393.3 million.
I am particularly pleased to see solid service sales as well as significant
growth in our modernization orders in the quarter and in the first half of the
year. This is a good basis for continuing our work towards the target of further
accelerating the growth of our service businesses. In a highly competitive new
equipment market environment, we have been focusing on attractive growth
opportunities. Our overall performance demonstrates that our competitiveness is
strong and that we can deliver results also in a more challenging environment. I
would like to thank everyone at KONE for their contribution and commitment
across our businesses.
During the second quarter, global market trends continued to be varied. In
China, the new equipment market volumes declined less than in the first quarter,
but pricing pressure in the market intensified. In this environment, we
developed roughly in line with the overall market during the quarter. The market
in the rest of the Asia-Pacific region grew. In Europe, the most positive
development was seen in Central and North Europe and the markets in South Europe
continued to stabilize. In North America, new equipment and service markets
showed a sustained good level of activity. Our progress in all of these regions
was good.
With two quarters now behind us, we have slightly upgraded our operating income
outlook. We continue to expect sales growth of 2-6% at comparable rates in
2016. Operating income is now expected to be in the range of EUR 1,250-1,330
million, assuming that translation exchange rates would remain at the average
level of January-June 2016."
Operating environment in April-June 2016
In the second quarter of 2016, the global new equipment market volumes weakened
as compared to the previous year, following a market decline in China. In the
Europe, Middle East and Africa (EMEA) region as well as in North America, both
new equipment and modernization demand continued to see growth. Also the
maintenance market continued to grow globally, with the strongest rate of growth
in the Asia-Pacific region and more moderate development in Europe and North
America.
Operating environment in January-June 2016
During January-June 2016, the new equipment market volumes in Asia-Pacific
weakened driven by a decline in the significant China market. In the EMEA
region, market volumes saw clear growth in Central and North Europe compared to
the previous year. In South Europe, the new equipment market was rather stable
and the Middle East saw a marginally positive trend despite uncertainty in the
region. In North America, the new equipment market continued to grow slightly
from a high level. The large European modernization market grew clearly in
Central and North Europe and showed signs of stabilization in South Europe. In
North America, the modernization market continued to grow slightly, and also the
markets in the Asia-Pacific region continued to present increasing modernization
opportunities. The maintenance markets continued to grow globally, with the
fastest rate of growth seen in the Asia-Pacific region. The pricing environment
remained challenging in many markets, with the new equipment market in China
seeing the most intense competition in pricing.
Market outlook 2016
In new equipment, the market in China is expected to decline by 5-10% in units
ordered and also the price competition to continue intense. In the rest of Asia-
Pacific and in North America, the market is expected to see some growth. Also
the market in Europe, Middle East and Africa region is expected to grow slightly
with growth in Central and North Europe and a more stable development in South
Europe and the Middle East.
The modernization market is expected to grow slightly in Europe, to continue to
grow in North America, and to develop strongly in Asia-Pacific.
Maintenance markets are expected to see the strongest growth rate in Asia-
Pacific, but to develop rather well also in other regions.
Business outlook 2016
KONE slightly upgrades its operating income (EBIT) outlook for 2016.
KONE's net sales is estimated to grow by 2-6% at comparable exchange rates as
compared to 2015.
The operating income (EBIT) is expected to be in the range of EUR 1,250-1,330
million, assuming that translation exchange rates would remain at approximately
the average level of January-June 2016.
Previous operating income (EBIT) outlook
The operating income (EBIT) is expected to be in the range of EUR 1,220-1,320
million, assuming that translation exchange rates would remain at approximately
the average level of January-March 2016.
Press and analyst meetings
A meeting for the press, conducted in Finnish, will be held on Tuesday, July
19, 2016 at 2:15 p.m. EEST.
A meeting for analysts, conducted in English, will begin at 3:45 p.m. EEST. 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: +1 646 254 3366
UK callers: +44 (0)20 3427 1901
Finnish callers: +358 (0)9 6937 9590
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. +358 204 75 4705
Sender:
KONE Corporation
Henrik Ehrnrooth
President and CEO
Max Alfthan
Executive Vice President, Marketing and Communications
KONE as a company
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 2015, KONE had annual net sales of EUR 8.6
billion, and at the end of the year close to 50,000 employees. KONE class B
shares are listed on the Nasdaq Helsinki Ltd. in Finland.
www.kone.com
[HUG#2029352]
© 2024 Nasdaq, Inc. All Rights Reserved |