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  • 2007-01-26 KONE Corporation’s Review: January–December 2006 (with Pro Forma Comparison Figures for January-December, 2005)

KONE Corporation’s Review: January–December 2006 (with Pro Forma Comparison Figures for January-December, 2005)

Stock Exchange Release Published 26/01/2007

KONE achieved 10 percent operating income (EBIT) already in 2006

  • Order intake growth for January-December 2006 exceptionally strong at 18 percent.
  • Net sales grew by 11 percent and totaled EUR 3,601 (3,242) million for January-December 2006.
  • Operating income (EBIT) improved by 32 percent to EUR 360.1 (272.0) million, corresponding to a 10.0 (8.4) percent operating income (EBIT) margin.
  • KONE’s target for 2007 is to achieve an approximate 10 percent increase in net sales, calculated at comparable exchange rates, compared to 2006. The operating income (EBIT) target is to achieve growth of approximately 20 percent from the comparable 2006 figure of EUR 360 million.
  • In 2008, KONE’s objective is to achieve an about 12 percent operating income (EBIT) margin.
  • The Board of Directors proposes a dividend of EUR 1.00 per class B share.

Key Figures

Orders received, MEUR712.1702.53,116.32,639.21,622.1
Order book, MEUR2,762.12,326.82,762.12,326.82,326.8
Sales, MEUR1,145.61,013.43,600.83,242.22,101.4
Operating income, MEUR123.493.6360.1272.0 (x194.7
Cash flow from operations
(before financing items and taxes), MEUR
Net income, MEUR80.253.8234.4108.8124.0
Net debt, MEUR124.999.3124.999.399.3
Total equity/total assets, %30.531.230.531.231.2
Gearing, %17.914.817.914.814.8

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.

Matti Alahuhta, President & CEO, says:

”I am very satisfied with KONE’s performance last year. In comparison with competition, we succeeded very well in increasing our orders and especially our profitability. We strengthened our market position in the Asia-Pacific region, continued to improve the profitability of our U.S. operations and also advanced strongly in many European markets. Our comprehensive development program has progressed well and produced results.”

KONE Corporation’s first financial reporting period was 1 June–31

December, 2005. KONE’s reporting period follows the calendar year

as of 2006. In order to facilitate evaluation of the financial performance and status of the company KONE has, in addition to the Financial Statements Bulletin, published this separate pro forma

review, in which the company has used 1 January–31 December 2005 data for comparison.

KONE Corporation’s audited Financial Statements are available on

the company’s website at www.kone.com.

Analyst and Media Conference and Conference Call

A meeting for the press, conducted in Finnish, will be held on Friday 26 January, 2007 at 2:00 p.m. Finnish time at KONE Building, address Keilasatama 3, 02150 Espoo.

A telephone conference and a meeting for analysts, conducted in English, will begin on Friday 26 January, 2007 at 3:30 p.m. Finnish time at KONE Building, address Keilasatama 3, 02150 Espoo.

The telephone conference will also be available as webcast on the company website. Callers 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

An on demand version of the conference will be available at www.kone.com later the same day.

KONE’s Financial Statement Bulletin and Pro Forma Report for 2006, and presentation material will be available in the meetings. The presentation material and KONE’s Annual Report for 2006 will be available in pdf-format on the company’s website as of 2:00 p.m. The printed Annual Report will be published in the week starting 5 February.


KONE Corporation

Aimo Rajahalme
Executive Vice President,

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, with innovative solutions for their maintenance and modernization. KONE also provides maintenance of automatic building doors. In 2006, KONE had annual net sales of EUR 3.6 billion and approximately 29,000 employees. Its class B shares are listed on the OMX Nordic Exchange in Helsinki, Finland.



The entire release in PDF format

2007-01-26 KONE Corporation’s Review: January–December 2006 (with Pro Forma Comparison Figures for January-December, 2005)

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