KONE upgrades its business outlook for 2020 following better than expected development in the third quarter

KONE Corporation, Inside information, September 22, 2020 at 9:30 a.m. EEST 

KONE upgrades its business outlook for 2020 following better than expected development in the third quarter

KONE upgrades its business outlook for 2020 following better than expected development in both sales and adjusted EBIT in the third quarter. KONE's new equipment sales have continued to grow in the third quarter driven by high level of activity in China. Service sales have seen improving momentum compared to the second quarter. Also, the adjusted EBIT has developed better than expected supported by the positive development in sales.

KONE will publish its third quarter results on October 22, 2020.

Business outlook for 2020:

KONE now estimates that in 2020, its sales growth will be in the range of -1% to 2% at comparable exchange rates as compared to 2019. The adjusted EBIT margin is expected to be in the range of 12.1% to 12.7%. 

For the full year, foreign exchange rates are estimated to impact the adjusted EBIT negatively by around EUR 50 million.

Previous business outlook: KONE previously estimated its sales growth to be in the range of -4% to 0% at comparable exchange rates as compared to 2019. The adjusted EBIT margin was expected to decline slightly or to be stable at best (2019 adjusted EBIT margin: 12.4%).

Market outlook for 2020:

KONE also upgrades the 2020 outlook for the Chinese new equipment market. Otherwise, the market outlook for 2020 is unchanged.

The new equipment market is expected to grow in China and to decline in other regions as a result of the increased uncertainty related to the COVID-19 pandemic.

The maintenance markets are expected to be resilient, excluding the direct impacts of the lockdown measures. In the modernization markets, the fundamental growth drivers are intact, but uncertainty could delay decision-making in modernization projects.

Previous outlook for Chinese new equipment market in 2020: The new equipment market was expected to be relatively stable in China.

For more information, please contact:
Sanna Kaje, Vice President, Investor Relations, tel. +358 204 75 4705  

Sender:
KONE Corporation 

Henrik Ehrnrooth
President and CEO  

Ilkka Hara
CFO 

About KONE
At KONE, our mission is to improve the flow of urban life. As a global leader in the elevator and escalator industry, KONE provides elevators, escalators and automatic building doors, as well as solutions for maintenance and modernization to add value to buildings throughout their life cycle. Through more effective People Flow®, we make people's journeys safe, convenient and reliable, in taller, smarter buildings. In 2019, KONE had annual sales of EUR 10 billion, and at the end of the year approximately 60,000 employees. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.
www.kone.com