Kone numbers up but orders slow

By Chris Sleight22 October 2008

Kone's escalators at Berlin Central Railway Station.

Kone's escalators at Berlin Central Railway Station.

Elevator and escalator manufacturer Kone saw its sales rise +16% in the third quarter to € 1,12 billion, compared to the same period last year. Operating profit was up +13% to € 146 million. However, the company experienced a -3.7% decline in orders over the three month period, although it said that at comparable exchange rates the € 892 million of business won was equal to the third quarter of last year.

Over the first nine months of the year the company's sales were up +14% on last year to € 3,17 billion. At € 369 million, its operating profit provided a margin of 11,6%, although this excludes a provision of € 142 million related to the European Commission's final decision on anti-competition hearings.

Despite the downturn in orders in the third quarter, Kone's backlog stood at € 4,00 billion at the end of September - up +15% on a year previously. At the current pace of sales, this represents about 11,4 months of work.

Commenting on the performance, Kone president & CEO Matti Alahuhta said, "Even with the negative impact of raw material prices, Kone succeeded in growing its operating Income (EBIT) by +15%. In the current demanding market environment, our service business is a major asset to us. The new equipment market faced increasing uncertainty especially in Western Europe and North America."

Latest News
The Utility Expo hits record visitors
More than 21,000 attendees at Louisville show
United Rentals makes show of strength at Utility Expo
Rental company takes biggest stand ever at Lousiville show