New KONE Posts Good Sales and Order Growth, Improved Profits before Restructuring Provision
- KONE’s elevator and escalator business (New KONE) orders received amounted to MEUR 604.1 (Q1 2004: 518.3), representing 18% growth at comparable exchange rates. The order book at the end of March increased to MEUR 2,023 (end of 2004: 1,796).
- Net sales rose to MEUR 649.3 (557.1). At comparable exchange rates, sales rose 18%.
- Operating income excluding the MEUR 89.2 provision for the development and restructuring program was MEUR 39.0 (27.4), representing 6.0 (4.9) percent of net sales. Pro forma operating income including the MEUR 89.2 provision was MEUR –50.2.
- Cash flow from operations (before financial items and taxes) totaled MEUR 68.8 (69.1).
- Net income amounted to MEUR –39.8 (19.6).
- Net debt increased to MEUR 31.3 (end of 2004: –61.4).
- The end-March total equity/total assets ratio was 32.5% (end of 2004: 35.2%).
- Gearing was 4.6% (end of 2004: -8.4%).
- KONE reiterates its outlook for unchanged operative profitability for the calendar year 2005, disregarding the EUR 89.2 million costs of the development and restructuring program.
KONE Corporation will be demerged on 31 May, 2005 into two corporations, KONE Corporation (new KONE), comprising KONE Corporation’s elevator, escalator and automatic building door service operations, and Cargotec Corporation, comprising KONE Corporation’s cargo-handling business. The two corporations will be listed on the main list of the Helsinki Stock Exchange on 1 June in accordance with the disclosed demerger plan. In order to facilitate the evaluation of the financial performance and status of New KONE, this pro forma review presents New KONE’s January-March 2005 financial results according to the business and corporate structure that will prevail after the demerger. It is based on KONE Corporation’s Financial Statements and the elevator operations of recently acquired MacGREGOR Group.
The most significant deviation between KONE Corporation’s Financial Statements and New KONE’s pro forma figures is due to the allocation of corporate costs to New KONE. The pro forma information also includes the marine elevator operations of MacGREGOR Group, which will be transfered to New KONE.