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KONE Corporation’s Interim Report for January-September 2007

Stock Exchange Release Published 23/10/2007

KONE Q3: Strong Growth in Orders Received and Profit

  • Orders received growth was 15 percent in January-September, or 18 percent at comparable exchange rates. Orders received totaled EUR 2,773 (2,404) million. In the third quarter, orders received growth was 25 percent, or 27 percent at comparable exchange rates. Orders received totaled EUR 926.3 (742.0) million.
  • Net sales grew by 13 percent to EUR 2,785 (2,455) million in January-September; at comparable exchange rates, growth was 16 percent. In the third quarter, net sales grew by 10 percent to EUR 971.6 (879.8) million. At comparable exchange rates, the growth was 13 percent.
  • Operating income was EUR 170.4 (236.7) million in January-September. Excluding the EUR 142.0 million fine for the European Commission’s decision, operating income was EUR 312.4 million or 11.2 (9.6) percent of net sales. In the third quarter, operating income was EUR 126.7 (101.1) million or 13.0 (11.5) percent of net sales.
  • KONE specifies 2007 outlook. KONE’s target for 2007 is to achieve a growth close to 15 percent in net sales, calculated at comparable exchange rates, compared to 2006. The operating income (EBIT) target is to achieve a growth close to 30 percent from the comparable 2006 figure of EUR 360 million. This target excludes the EUR 142.0 million fine for the European Commission’s decision and the possible fine from Austria.
Key Figures
7-9/ 20077-9/ 20061-9/ 20071-9/ 20061-12/ 2006
Orders receivedMEUR926.3
742.0
2,772.8
2,404.2
3,116.3
Order bookMEUR3,473.6
2,951.0
3,473.6
2,951.0
2,762.1
SalesMEUR971.6
879.8
3,473.6
2,455.2
3,600.8
Operating incomeMEUR126.7
101.1
312.4x)
236.1
360.1
Operating income%13.011.5
11.2x)
9.6
10.0
Cash flow from operations before financing items and taxes)MEUR158.7
127.4
264.0
274.0
371.7
Net incomeMEUR91.8
70.3
79.7
154.2
234.4
Interest-bearing net debtMEUR168.5
138.8
168.5
138.8
124.9
Total equity/total assets%
27.9
29.0
27.9
29.0
30.5
Gearing
%
25.9
21.1
25.9
21.1
17.9

x) Excluding the EUR 142.0 million fine for the European Commission’s decision.

KONE President & CEO, Matti Alahuhta, in conjunction with the review:

“I am pleased with our progress in profitable growth. Our strong growth both in orders received and operating income are clear signs of our improving competitiveness. We continue to have a lot of opportunities to improve our activities and we are in a great position to do that. I want to thank all KONE employees for their energized efforts.”

Analyst and Media Conference and Conference Call

A meeting for the press, conducted in Finnish, will be held on October 23, 2007 at 2:00 PM at KONE Building, Keilasatama 3, Espoo.

A combined analyst meeting and conference call/web cast, conducted in English, will be held on October 23, 2007 at 4:00 PM at KONE Building, Keilasatama 3, Espoo. Conference call participants may access the conference directly at the following telephone numbers:

US callers: +1 334 323 6201
Non-US callers: +44 (0)20 7162 0025
Participant code: KONE

The conference call will also be available as a web cast on the company website. An on demand version of the conference will be available at www.kone.com later the same day.

About KONE

KONE is one of the world’s leading elevator and escalator companies. It provides its customers with industry-leading elevators and escalators, with innovative solutions for their maintenance and modernization. KONE also provides maintenance of automatic building doors. In 2006, KONE had annual net sales of EUR 3.6 billion and approximately 29,000 employees. Its class B shares are listed on the OMX Nordic Exchange in Helsinki, Finland.

www.kone.com

For further information please contact:
Aimo Rajahalme, Executive Vice President, Finance, tel. +358 (0) 204 75 4484

Sender:

KONE Corporation

Aimo Rajahalme
Executive Vice President,
Finance

Minna Mars
Senior Vice President,
Corporate Communications & IR

Attachments:
The entire release in PDF format