Q1 Profit, Orders Buoy KONE Outlook

Strong modernization demand, a thriving service business and the easing of supply chain disruptions brought about by the COVID-19 pandemic contributed to Finnish OEM KONE’s first-quarter (Q1) profit beating market expectations and the company raising its 2023 sales outlook, Reuters was among outlets to report on April 26. KONE’s adjusted operating profit beat analysts’ expectations of EUR221.6 million (US$244.8 million), rising 23.1% to EUR241.9 million (US$267.18 million) in Q1. “Order momentum was solid considering the market background,” KONE CEO Henrik Ehrnrooth observed. Despite new-equipment orders remaining constrained in China, which accounts for approximately 30% of KONE’s total sales, the company sees China construction activity recovering toward the end of the first half of 2023. KONE’s sales outlook for 2023 is expected to be “somewhat above” sales in 2022. The company had previously expected sales to be about the same as in 2022.