KONE improves results in 2020 despite COVID-19 crisis

The operating income of the Finland-based lift and escalator maker KONE grew during the fourth quarter (Q4) of 2020 to 380.6 million euros from 367.5 million in Q4 2019, said the company in a press release issued on Thursday, reported Xinhua.

KONE's sales of Q4 2020 declined by 2.4 percent to 2,621.2 million euros, from 2,684.6 million euros in 2019. The value of orders was 2,068.7 million euros, up four percent from 1,988.3 million euros in Q4 a year ago.

For the whole year of 2020, KONE's operating income (EBIT) was 1,212.9 million euros, up by 1,1 percent from 2019. Annual sales declined 0.4 percent to 9,938.5 million euros year on year, but grew by 1.4 percent at comparable exchange rates. Orders received in 2020 declined by 2.6 percent to 8,185.1 million euros from 8,399.8 million euros in 2019.

Henrik Ehrnrooth, chief executive officer (CEO) of KONE, noted in the press release that the adjusted EBIT (earnings before interest and taxes) margin improved both in Q4 and the full year. "We have been consistently taking actions to improve profitability and I am pleased that this is now visible in the results," he said.

Ehrnrooth said that from Q2 onwards China was driving the growth while other markets were more impacted by the COVID-19 crisis. He added that during Q4 the growth in China was more moderate and in the second and third quarters the volumes in China were extraordinarily high.

Looking ahead to 2021, Ehrnrooth said the new equipment market is expected to be stable or to grow in China, while in the rest of the world, the market is expected to decline year-on-year in the first quarter due to a high comparison point and then to start recovering.

Following the results announcement, the stock of KONE at the Helsinki Stock Exchange showed a 3.8 percent increase.