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KONE Interim Report: January-June, 2003

Stock Exchange Release Published 22/07/2003

Sales and Profitability on Track

  • The value of orders received rose to MEUR 2,317 (Jan.-June, 2002: 1,108). KONE Elevators & Escalators accounted for MEUR 1,018 (1,108) of the total. At comparable exchange rates order intake was unchanged. KONE Materials Handling’s share of order intake was MEUR 1,298 (Jan.-June, 2002, not consolidated: 1,242), reflecting growth of 14 percent at comparable exchange rates.
  • Sales totaled MEUR 2,504 (1,378). Elevators & Escalators’ net sales amounted to MEUR 1,238 (1,378). (At comparable exchange rates, sales decreased by two percent). Materials Handling’s sales were MEUR 1,266 (1,213, reflecting growth of 13 percent at comparable exchange rates).
  • Operating income before goodwill amortization (EBITA) was MEUR 177.6 (117.3). In Elevators & Escalators, EBITA was MEUR 117.5 (117.3), or 9.5 (8.5) percent of net sales. Materials Handling’s EBITA was MEUR 67.1 (40.6), or 5.3 (3.3) percent of net sales. Unallocated corporate costs accounted for MEUR 7.0 (0.0).
  • Cash flow from operations before financial items and taxes was MEUR 185.0 (182.8). Elevators & Escalators accounted for MEUR 126.2 (182.8) and Materials Handling for MEUR 58.8 (27.5).
  • Interest-bearing net debt decreased to MEUR 952.7 (end of 2002: 1,252)
  • Net income amounted to MEUR 72.1 (60.8).
  • Earnings per share rose to EUR 1.15 from EUR 1.04.
  • New owners are being sought for the Tractors and Forest Machines businesses.

The figures for Materials Handling were consolidated into KONE’s figures as of July 1, 2002, and the comparison figures for January-June 2002 are, therefore, not consolidated. The comparison figures are calculated at the exchange rate for the comparison period and do not include Nordkalk and Paroc, which have been sold.

KONE Chairman of the Board Antti Herlin in conjunction with the interim report:

“KONE’s first half financial result is on track with our disclosed expectations for the full year.

In Elevators & Escalators the market for new equipment was challenging. KONE strengthened its market position in Europe and North America, however, and our service business progressed steadily. KONE’s success in China and Australia continued. Profitability in this division will improve as planned.

Sales and order growth in Materials Handling were favorable. Growth was almost exclusively organic, which is an indicator of good underlying potential. Profitability also improved clearly.

We have disclosed our decision to focus on Elevators & Escalators, and Container and Load Handling while seeking new owners for the Tractors and Forest Machines businesses. This process is well underway, and we will disclose information about progress in this effort during the fall.“

Sender:

KONE Corporation

Aimo Rajahalme
Executive Vice President,
Finance and Information Services

Outi-Maria Liedes
Senior Vice President
Corporate Communications & IR

For further information please contact:
Aimo Rajahalme
Executive Vice President
Finance and Information Services, KONE,
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 35,000 people. KONE's B shares are listed on the Helsinki Exchanges.

www.kone.com

Attachments:

Interim report, January-June 2003