KONE Q3 2023
Henrik Ehrnrooth, President & CEO Ilkka Hara, CFO
Q3 2023 Highlights
- Excellent performance in Service and Modernization
- Momentum in China regained and growth opportunities in India and the Middle East captured
- Stable development in orders received, good achievement considering market backdrop
Q3 2023 key figures
Orders received stable; strong growth in Service and Modernization sales
Q3/2023 | Q3/2022 | Change | Comparable | |||
change | ||||||
Orders received | MEUR | 1,989.9 | 2,155.5 | -7.7% | 0.3% | |
Order book | MEUR | 8,839.5 | 9,890.5 | -10.6% | -3.7% | |
Sales | MEUR | 2,749.9 | 2,998.2 | -8.3% | -1.4% | |
Operating income (EBIT) | MEUR | 316.5 | 303.9 | 4.1% | ||
Operating income margin (EBIT %) | % | 11.5 | 10.1 | |||
Adjusted EBIT | MEUR | 315.9 | 305.8 | 3.3% | ||
Adjusted EBIT margin | % | 11.5 | 10.2 | |||
Cash flow from operations | MEUR | 342.1 | 336.1 | |||
(before financing items and taxes) | ||||||
Basic earnings per share | EUR | 0.47 | 0.46 | 3.7% | ||
1-9/2023 key figures
Sales growth and improved profitability; market backdrop impacted orders received
1-9/2023 | 1-9/2022 | Change | Comparable | |||
change | ||||||
Orders received | MEUR | 6,528.5 | 7,187.1 | -9.2% | -4.6% | |
Order book | MEUR | 8,839.5 | 9,890.5 | -10.6% | -3.7% | |
Sales | MEUR | 8,142.4 | 7,995.2 | 1.8% | 6.5% | |
Operating income (EBIT) | MEUR | 837.9 | 664.0 | 26.2% | ||
Operating income margin (EBIT %) | % | 10.3 | 8.3 | |||
Adjusted EBIT | MEUR | 889.8 | 711.6 | 25.0% | ||
Adjusted EBIT margin | % | 10.9 | 8.9 | |||
Cash flow from operations | MEUR | 1,104.1 | 721.4 | |||
(before financing items and taxes) | ||||||
Basic earnings per share | EUR | 1.26 | 0.97 | 30.2% | ||
Appointment to the Executive Board
Axel Berkling
Axel Berkling has been appointed Executive Vice President, Commercial & Operations as of 11 October 2023. Axel will also continue to lead the Strategy & Transformation organization until a successor has been appointed to this role.
Philippe Delorme appointed President and CEO of KONE Corporation as of 1 January 2024
- Accomplished leader with over 25 years of business leadership experience from Schneider Electric, most recently as Executive Vice President, Europe Operations
- Member of the Schneider Electric Executive Committee 2009-2023
- Past key positions in strategy, technology and sales in Europe, the US and Asia
Market development
New Building Solutions market in Q3 2023
Markets impacted by continued weakness in China and slower construction activity in Europe and North America
North America | EMEA | China | Rest of Asia-Pacific |
--- | -- | --- | ++ |
<5% of | <20% of | >65% of | >10% of |
global | global | global | global |
market | market | market | market |
(in units) | (in units) | (in units) | (in units) |
• Market declined significantly | • Weakness in the residential | • Activity declined significantly | • Activity grew clearly with |
from a high base | markets drove a significant | as weak consumer sentiment | continued strong demand in |
decline in Europe | weighed on demand | India and Southeast Asia |
• In the Middle East, activity was on a high level
- - Significant decline (>10%), - - Clear decline (5-10%), - Slight decline (<5%), Stable, + Slight growth (<5%), + + Clear growth (5-10%), + + + Significant growth (>10%). The development of the operating environment compared to the corresponding period last year. Based on KONE's estimate, includes markets where KONE has presence.
Service and Modernization markets in Q3 2023
Positive development continued with growth across all regions
North America | EMEA | China | Rest of Asia-Pacific | ||||
Service | Modernization | Service | Modernization | Service | Modernization | Service | Modernization |
+ | + | + | + | ++ | ++ | ++ | +++ |
<10% of | <35% of | <40% of | <40% of | <50% of | <20% of | >5% of | <10% of |
global market | global market | global market | global market | global market | global market | global market | global market |
(in units) | (in monetary value) | (in units) | (in monetary value) | (in units) | (in monetary value) | (in units) | (in monetary value) |
- - Significant decline (>10%), - - Clear decline (5-10%), - Slight decline (<5%), Stable, + Slight growth (<5%), + + Clear growth (5-10%), + + + Significant growth (>10%).
The development of the operating environment compared to the corresponding period last year. Based on KONE's estimate, includes markets where KONE has presence.
Market activity in China
- Weak consumer sentiment continued to weigh on new construction activity, policy actions central to recovery
- Pricing environment characterized by intense competition
- Continued focus on completion of unfinished projects
- Strong growth in Service and Modernization markets
Q3 2023 y/y | YTD 2023 y/y | |
Real estate investment | -11.5% | -9.1% |
Residential sales volume | -13.9% | -6.3% |
New starts | -21.3% | -23.4% |
Completions | 21.7% | 19.8% |
New home prices in 70 largest cities (Sep) | -0.57% |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Kone Oyj published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 10:16:02 UTC.