Strong Order Intake Continued
- Kone Corporation demerged into two separately listed corporations, KONE Corporation and Cargotec Corporation, on 1 June 2005. This pro forma review presents KONE’s January–September 2005 financial performance according to the business and corporate structure prevailing after the demerger. The official Interim Report for the period June-September is also released in conjunction with this report.
- Third quarter order intake continued strong both in new equipment and modernizations. Order book was at a record high level.
- Programs for improving customer focus, product portfolio, productivity and cost competitiveness are progressing as planned.
- The main actions of the Development and Restructuring Program will be completed by the end of 2005.
- KONE maintains its outlook for achieving at least last year’s approximately 8 percent pro forma operating income margin for 2005, disregarding the EUR 89.2 million cost of the Development and Restructuring Program. Net sales for the calendar year are expected to reach EUR 3.1 billion.
|Order intake, MEUR||646.4||505.3||1,938.8||1,567.3|
|Order book, MEUR||2,371.7||1,938.6||2,371.7||1,938.6|
|Operating income, MEUR||78.1||72.4||177.9*||142.3|
|Cash flow from operations (before financial items and taxes), MEUR||90.3||68.1||218.0||165.8|
|Net income, MEUR||54.6||51.0||54.1||100.5|
|Net debt, MEUR||134.5||134.2||134.5||134.2|
|Total equity/total assets, %||29.5||23.6||29.5||23.6|
*Excluding a MEUR 89.2 provision for the development and restructuring program. Operating income in January-September 2005 including the provision was MEUR 88.7.
President of KONE, Matti Alahuhta, in conjunction with the review:
“We are pleased that our change programs have gained momentum. Our customer focus is improving, and we have responded quickly by developing our product offering to better meet customer requirements. Our programs to improve productivity have also progressed as planned.
“Global competition in the new equipment business, combined with production shifts to low-cost countries, has intensified competition. To enable profit growth, we must continuously improve our product offering and operations through our change programs and restructuring efforts.
“Business performance continued to be strong, and year-on-year third quarter order growth was over 20 percent in all market areas. Particularly pleasing is the strong development of the order intake in Asia.
“Based on our performance during the third quarter, we are confident that we will already achieve faster-than-market growth this year.”
Analyst and Media Conference and Conference Call
A meeting for the media and analysts will be held on 21 October, 2005 at 2:00 p.m. Finnish time at KONE Building, address Keilasatama 3, Espoo.
A telephone conference for analysts and investors, conducted in English, will begin at 4:00 p.m. Finnish time and will also be available as live audio web cast on the company website. Callers may access the conference directly at the following telephone numbers: +1-617-786-2962 (US callers) or +44-20-7365-8426 (Non-US callers), password: KONE Corporation. On demand copy of the conference will be available on the company website later the same day.
This pro forma review is unaudited.
In conjunction with this report, KONE has published the official Interim Report for the period 1 June–30 September, 2005. The Interim Report is divided into the periods June-September and July-September. The third quarter pro forma figures deviate from the official third quarter figures because the different accounting periods result in deviating average currency rates. KONE Corporation's first financial reporting period is 1 June, 2005–31 December, 2005.
Executive Vice President, Finance and Information Services
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
KONE is the world’s fourth largest elevator and escalator company and provides complete and innovative solutions for the installation, maintenance and modernization of elevators and escalators and the maintenance of automatic building doors. KONE provides safe and easy access to hundreds of millions of people daily in all parts of the world. KONE has annual net sales of approximately EUR three billion and about 27,000 employees. Its class B shares are listed on the Helsinki Exchanges.