KONE Describes Strong Half Year, Remaining Challenges

In a financial report covering January-June 2021, KONE described strong financial performance and market recovery as it continues to navigate global supply-chain and pricing challenges. Orders grew by 16.2% in that timeframe to EUR2.41 billion (US$2.8 billion), and sales by 11% to EUR2.81 billion (US$3.29 billion). President and CEO Henrik Ehrnrooth said activity remains high in China, and pointed to the U.S. as a particular highlight. Strong orders demonstrate the success of KONE’s “efforts to capture recovery-driven opportunities.” He said he was especially pleased to see maintenance business rebound to pre-pandemic levels. However, Ehrnrooth said, the global supply-chain environment remains challenging, with materials and sea freight costs rising “dramatically.” In particular, a shortage of semiconductors is impacting all businesses that use advanced electronics. Rising costs are being passed on to elevator and escalator customers, and Ehrnrooth praised the KONE team for working with them. He expects logistics and component availability to start easing toward the beginning of 2022.