Kone: share up on outlook driven by China

(CercleFinance.com) - The Finnish life and escalator manufacturer Kone announced on Tuesday that it had raised its forecasts for 2020, integrating stronger-than-expected demand in China.


Kone now says that it is targeting an adjusted operating margin of between 12.1% and 12.7% for the full year, on sales ranging from -1% to +2% at constant exchange rates.

The group previously expected a flat adjusted operating margin (EBIT), or even one that is down slightly compared to the 12.4% recorded for the year 2019, while it forecast its sales to fall by between 0% and 4%.

Kone explains that sales of new equipment continued to grow in the third quarter, driven by a strong business in China. Meanwhile, its service business also improved from quarter to quarter, the group said.

After these announcements, the Kone share was up around 3% on the Helsinki Stock Exchange on Tuesday.



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