KONE Lowers Outlook Due to China Market

Elevator maker KONE has lowered its sales and profit outlook for this year due to lower-than-expected second quarter sales and a weakened new equipment market outlook in China, Yahoo Finance reports. KONE now expects its 2022 adjusted operating profit to be between EUR1.13 billion and EUR1.21 billion (US$1.12billion-US$1.21 billion) down from a previous forecast of between EUR1.18 and EUR1.28 billion. Sales growth is now seen at between -1% and 3% compared to the previously guided range of growth of 2-5%. China, which accounts for 35% of KONE’s sales, experienced lockdowns to curb the spread of coronavirus, resulting in net sales declining by close to 40% in comparable currencies in the country, the company said in a statement.