KONE’s Financial Result Improved Again
- KONE acquired the Finnish-based industrial engineering company Partek. Partek’s figures have been consolidated into KONE’s financial statements as of 1 July, 2002.
- KONE comprises two strong divisions: KONE Elevators & Escalators and KONE Materials Handling.
- Net sales totaled MEUR 4,342 (2001: 2,816). KONE Elevators & Escalators’ net sales rose 5.5 percent to MEUR 2,970 (2,816). KONE Materials Handling’s sales in the second half the year were MEUR 1,372 (7–12/2001: 1,379).
- Operating income before goodwill amortization (EBITA) in KONE Elevators & Escalators was MEUR 287.0 (256.4), representing 9.7 (9.1) percent of net sales. KONE Materials Handling’s EBITA was MEUR 64.2 (60.8), or 4.7 (4.4) percent of net sales. Unallocated corporate costs accounted for MEUR 11.
- Net income improved 11 percent to MEUR 157.1 (141.1).
- Earnings per share rose to EUR 2.54 from EUR 2.42.
- Cash flow from operations before financial items and tax rose by nearly 80 percent to MEUR 615.6. KONE Elevators & Escalators accounted for MEUR 460.7 and KONE Materials Handling for MEUR 154.9.
- The board of directors proposes that the dividend be raised to EUR 1.50 from EUR 0.73 per class B share.
CEO Antti Herlin in Conjunction with KONE’s 2002 Financial Statements:
“The efficiency of the elevators and escalators business improved yet again, and we achieved record profits. The most significant event of year 2002 was the acquisition of Partek. After the transaction our gearing rose clearly. We successfully started the divestment of non-core holdings and measures to improve Partek’s profitability already in 2002. The sale of non-core businesses in conjunction with our strong cash flow will rapidly reduce gearing.
Growth makes it possible for share value and earnings per share to increase. In the long term, KONE has been one of the best performers on the Helsinki Exchanges. It is especially gratifying that during 2002 the number of KONE shareholders rose by more than 70 percent to nearly 8,000. We want to share our success with our owners. KONE’s board of directors proposes that 59 percent of the year’s income be paid out in dividends. This means 1.5 euros per B share. We will do our best to continue to be worthy of our shareholders’ confidence in the future.”
Executive Vice President,
Finance and Information Services
Senior Vice President,
Corporate Communications & IR
For further information please contact:
Aimo Rajahalme, tel. +358 (0)204 75 4484
KONE is a global service and engineering company that specializes in moving people and goods. Annual net sales total EUR 5,500 million, and we employ nearly 36,000 people. KONE's B shares are listed on the Helsinki Exchanges.