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KONE Corporation’s board of directors decided in its meeting on 19 October, 2004 to initiate preparations for a development and restructuring program in order to secure the long-term competitiveness and profitability of its elevator and escalator business. The aim of the program is, in particular, to improve the profitability of the new equipment business, which has weakened in 2004.
In the interim report for the first quarter of 2004, KONE reported that delays in completions of construction projects was one reason for weaker profitability. In the second quarter, profitability in the new equipment business did not improve as expected, and KONE told of undertaking actions to increase profitability.
Detailed plans of the program will be completed by the end of March. The total one-time after-tax cost of the program, including possible impairment losses on fixed assets and goodwill, is estimated to be approximately EUR 70 million.
Director, Secretary to the Board of Directors
Senior Vice President, Corporate Communications & IR
For further information, please contact:
Aimo Rajahalme, Executive Vice President, Finance and Information Services,
tel. +358 (0)204 75 4484