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KONE Corporation's Interim Report for January-September 2006

Stock Exchange Release Published 24/10/2006

KONE’s Q3: Strong Improvement in Profitability

  • Full year guidance reiterated.
  • Order intake growth remained strong at approximately 24 percent during January-September.
  • Net sales grew by 10 percent and totaled EUR 2,455 (2,234) million during January-September.
  • Operating income improved by 33 percent to EUR 236.7 (177.91)million during January-September.

Key Figures

7-9/20067-9/20051-9/2006Pro forma 1-9/2005Pro forma 1-12/2005Previous accounting period 6-12/2005
Orders received, MEUR742.0649.42,404.21,938.82,639.21,622.1
Order book, MEUR2,951.02,371.72,951.02,371.72,326.82,326.8
Sales, MEUR879.8804.72,455.22,233.83,242.22,101.4
Operating income, MEUR101.179.1236.7177.9 x)272.0 x)194.7
Cash flow from operations (before financial items and taxes), MEUR127.490.0274.0218.0329.4215.4
Net income, MEUR70.355.8154.254.1108.8124.0
Net debt, MEUR138.8134.5138.8134.599.399.3
Total equity/total assets, %29.029.529.029.531.231.2
Gearing, %21.121.421.121.414.814.8

x) Excluding a EUR 89.2 million provision for the development and restructuring program. Operating income, including the provision, was EUR 182.8 million in 2005 and EUR 88.7 million for the period 1- 9/2005.

Remarks by Matti Alahuhta, KONE President:

“I am pleased with the continuing strengthening of our market position with simultaneous positive development in profitability. Geographically, progress in Asia was especially encouraging. Order intake growth was again highest in China. Orders continued to increase strongly also in Europe.

Profitability development was a result of sales growth, healthy sales margins and improving productivity. Our development programs continued to contribute to this positive development. During the next twelve months we will put energy especially on implementing our Customer Focus and Operational Excellence programs.”

Analyst and Media Conference and Conference Call

A meeting for the press, conducted in Finnish, will be held on 24 October, 2006, at 2:00 p.m. at KONE Building, address Keilasatama 3, Espoo. A joined analyst meeting and conference call, conducted in English, will be on 24 October, 2006, at 3:30 p.m. at KONE Building, address 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 be available also as audio webcast on the company website. On demand version of the conference will be available on the company website www.kone.com later the same day.

Sender:

KONE Corporation

Aimo Rajahalme
Executive Vice President,
Finance

Minna Mars
Senior Vice President,
Corporate Communications & IR

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

KONE is one of the world's leading elevator and escalator companies. It provides its customers with industry-leading elevators and escalators and innovative solutions for their maintenance and modernization. KONE also provides maintenance of automatic building doors. In 2005, KONE had annual net sales of EUR 3.2 billion and about 27,000 employees. Its class B shares are listed on the Helsinki Stock Exchange.

www.kone.com

Attachments:

The entire release in PDF format