European Lift Makers 2Q Order Intake Above Expectations

Schindler and KONE posted second-quarter order intake above expectations, but warned China’s construction slowdown was weighing on new installations, Reuters reports. Schindler’s order intake was down 0.4% from a year earlier in local currencies, but just ahead of analysts’ forecast in a poll compiled by Vara, and the volume of new installations in China fell between 5% and 10% in the quarter compared to last year. KONE’s order intake grew 3.6% in local currencies, surpassing analysts’ forecast by about 3%, based on Vara consensus, and the 11.1% fall in second-quarter sales for its new buildings business was mostly due to its performance in China. Chinese construction starts fell by nearly 24% in the first half of 2024, but renovation and maintenance business will continue to grow around the world. Schindler is less exposed to China with approximately 15% of its revenue coming from China last year, versus 30% for Kone, according to estimates. Although Schindler confirmed its outlook for the year, it warned that new installations in the Asia-Pacific region without China would be worse than expected. In addition, urbanizing India is a key growth market for both companies.