KONE sees improved results in Q2

Finnish elevator and escalator company Kone reported improved business results in April-June of 2021, said the company in a press release on Tuesday, reported Xinhua.

The business result, or the adjusted earnings before interest and tax (EBIT), of KONE in the second quarter (Q2) reached 374.0 million euros, up from 324.6 million euros in the corresponding period of 2020, according to the press release.

Sales of KONE in Q2 grew by 11 percent to 2,810.8 million euros from 2,532.1 million euros in the same quarter last year. Orders received during Q2 increased by 16.2 percent to 2,410.7 million euros, from the 2,075.4 million euros year on year.

Henrik Ehrnrooth, president and chief executive officer (CEO) of KONE, said in the press release that the strong growth of new orders showed success in capturing opportunities driven by the recovery of the COVID-19 pandemic.

"Activity remained high in China, and business conditions improved elsewhere with the U.S. being a clear highlight," he said.

According to the press release, China was growing in the new equipment market "from its already high level," while in the rest of Asia-Pacific the new equipment markets witnessed a strong recovery compared to the previous year.

Across the EMEA region (Europe, the Middle East and Africa), the new equipment market grew slightly, while in North America, the market grew clearly, it added.

However, Ehrnrooth expressed concern over the challenges in the global supply chain environment. "Material costs are at a high level, sea freight costs have risen dramatically, and the shortage of semiconductors is impacting every business using advanced electronics," he said, adding that he expects the recovery to continue.

In its updated market outlook for 2021, KONE expects a 4-6 percent growth in sales for the whole year.