Kone Oyj

Latest Results (17.12.2024):

Orders Received

In the third quarter of 2024, Kone Oyj reported a 4.4% increase in orders received, reaching EUR 2,076.6 million compared to EUR 1,989.9 million in the same period of 2023. When adjusted for comparable exchange rates, the growth was 5.5%. This growth was primarily driven by significant increases in the Modernization segment, despite a slight decline in New Building Solutions orders.

Sales Performance

Kone Oyj's sales for Q3 2024 showed a marginal increase of 0.1%, totaling EUR 2,753.6 million, compared to EUR 2,749.9 million in Q3 2023. At comparable exchange rates, sales grew by 1.1%. The Service and Modernization segments experienced robust growth, which offset the decline in New Building Solutions sales, particularly in Greater China.

Operating Income

For the third quarter of 2024, Kone Oyj's operating income (EBIT) was EUR 319.4 million, representing 11.6% of sales, up from 11.5% in the same quarter of the previous year. The adjusted EBIT margin also improved to 11.6%. This improvement was attributed to a favorable business mix and better margins in deliveries outside China, although challenges in China and inflationary pressures impacted overall profitability.

Cash Flow and Debt

During Q3 2024, Kone Oyj reported a cash flow from operations (before financing items and taxes) of EUR 344.8 million, slightly up from EUR 342.1 million in Q3 2023. The company maintained a strong financial position with interest-bearing net debt at EUR -1,013.4 million, indicating a net cash position.

Business Outlook

Kone Oyj has specified its business outlook for 2024, expecting sales to grow between 0% and 3% at comparable exchange rates. The adjusted EBIT margin is anticipated to be in the range of 11.5% to 11.9%. The company is focusing on strategic initiatives to enhance performance, particularly in Service and Modernization, while addressing challenges in the Chinese market and inflationary cost pressures.