Highlights of 2007 and Outlook 2008
- In 2007, orders received growth was 18 percent, or 21 percent at comparable exchange rates. Orders received totaled EUR 3,675 (3,116) million.
- Net sales increased by 13 percent and was EUR 4,079 (3,601) million. At comparable exchange rates, growth was 16 percent.
- Operating income was EUR 320.8 (360.1) million. Excluding EUR 152.4 million (which includes the European Commission’s fine, the Austrian Cartel Court fine and the profit from the sale of the KONE Building), operating income was EUR 473.2 million or 11.6 (10.0) percent of net sales.
- Earnings per share were EUR 1.44 (1.86).
- KONE´s target for 2008 is to achieve, at comparable exchange rates, a growth of about 10 percent in net sales, compared to 2007. The operating income (EBIT) target is to achieve a growth close to 20 percent compared to the 2007 figure of EUR 473 million. This corresponds to an operating income (EBIT) margin of at least 12.0 percent.
- The Board proposes a dividend of EUR 1.30 per class B share.
Highlights of the last quarter of 2007
- In October-December, orders received growth was 27 percent, or 31 percent at comparable exchange rates. Orders received was strong in all geographical regions and totaled EUR 901.9 (712.1) million.
- Net sales increased by 13 percent to EUR 1,294 (1,146) million. At comparable exchange rates, the growth was 16 percent.
- Operating income was EUR 150.4 (123.4) million. Excluding the Austrian Cartel Court’s fine and the profit from the sale of the KONE Building, operating income was EUR 160.8 million or 12.4 (10.8) percent of net sales.
|Orders received, MEUR||901.9||712.1||3,674.7||3,116.3|
|Order book, MEUR||3,282.3||2,762.1||3,282.3||2,762.1|
|Operating income, MEUR||160.8 (x||123.4||473.2 (xx||360.1|
|Operating income, %||12.4 (x||10.8||11.6 (xx||10.0|
|Cash flow from operations (before financing items and taxes), MEUR||116.0||97.7||380.0||371.7|
|Net income, MEUR||100.6||80.2||180.3||234.4|
|Interest-bearing net debt, MEUR||91.7||124.9||91.7||124.9|
|Total equity/total assets, %||31.7||30.5||31.7||30.5|
|Basic earnings per share, EUR||0.80||0.64||1.44||1.86|
(x Excluding a EUR 22.5 million provision for the Austrian Cartel Court's fine decision and a EUR 12.1 million sales profit from the sale of KONE Building
(xx Excluding a EUR 142.0 million fine for the European Commission’s decision, a EUR 22.5 million provision for the Austrian Cartel Court's fine decision and a EUR 12.1 million sales profit from the sale of KONE Building
KONE President & CEO, Matti Alahuhta, in conjunction with the review:
“2007 was a very good year for KONE Corporation both in terms of operational financial performance and change progress. We achieved a high growth both in orders received and in operating income. I am particularly pleased that our year-on-year growth in orders received accelerated in Q4. KONE´s business performance development outperformed the industry overall, which is a sign of our improving competitiveness. This is in line with our long term goal, which is to develop KONE into a very strong company in its industry both in terms of market position and operating income,” says Matti Alahuhta, President and CEO of KONE Corporation
KONE’s outlook for 2008 is also positive. According to Alahuhta, the most significant mega trend of the next decades impacting KONE is urbanization. “The expanding urban environments need an increasing number of solutions to move a growing number of people smoothly, safely, comfortably and efficiently.”
“We are pleased with our accomplishments and at the same time, we see great potential to develop KONE further in order to fully exploit the changes in our operating environment. Our 3-year-long first phase of change will continue to bring results. Now we will move into the next phase to make KONE a truly market-driven company,” Alahuhta notes.
KONE’S Annual Report is available on the company’s website at www.kone.com. The Annual Report includes Financial Statements condensed from the audited Financial Statements of KONE Corporation.
Analyst and Media Conference and Conference Call
A meeting for the press, conducted in Finnish, will be held on January 25, 2008 at 2:00 PM in the KONE Building, Keilasatama 3, Espoo.
A combined analyst meeting and conference call/web cast, conducted in English, will be held on January 25, 2007 at 15:30 PM in the KONE Building, Keilasatama 3, Espoo. Conference call participants may access the conference directly with 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 KONE´s website. An on demand version of the conference will be available at www.kone.com later the same day.
KONE is one of the world’s leading elevator and escalator companies. It provides customers with industry-leading elevators, escalators and innovative solutions for maintenance and modernization. KONE also provides maintenance services for automatic building doors. In 2007, KONE had annual net sales of EUR 4.1 billion and approximately 32,500 employees. Its class B shares are listed on the OMX Nordic Exchange in Helsinki, Finland.
For further information please contact:
Aimo Rajahalme, Executive Vice President, Finance, tel. +358 (0) 204 75 4484
Executive Vice President,
Senior Vice President,
Corporate Communications & IR