KONE Earnings: Strong Service Business Helps Offset Weak China, North America Markets

In its half-year financial report for January-June, KONE Corp. said strong service business performance is helping offset “challenging market dynamics” in China and a North America market that has “declined significantly from a high base.” Released on July 20, the report reflects KONE’s expectation that sales will grow at comparable exchange rates by 3.6% for 2023. Policy actions, KONE President and CEO Henrik Ehrnrooth said, remain key to alleviating weak consumer confidence affecting new equipment orders in China. In the rest of the Asia Pacific, activity grew clearly, KONE observed, buoyed by strong development in India and recovery in Southeast Asia. Activity declined significantly throughout Europe “mainly due to a weaker sentiment in the residential segment.” KONE’s new operational model that launched on July 1 promises to achieve EUR100 million (US$111.3 million) in annual savings, Ehrnrooth added.