Elevator and escalator manufacturer Machine The result improved as expected towards the end of the year.
In October -December, the company’s adjusted operating profit settled to EUR 386.5 million, compared with EUR 358.6 million a year ago.
The EBIT business profit was EUR 332.5 million, which is slightly lower than the comparison period EUR 362.1 million.
The company’s net sales increased to EUR 2,975.6 million from EUR 2,809.9 million during the comparison period.
Analysts following the company predicted that Kone’s net sales in October-December increased to EUR 2927.9 million. The company’s adjusted operating profit analysts predicted that it had grown slightly to EUR 379.2 million. For earnings forecasts, the fork is EUR 362-415 million. Database Spare research The consensus forecast collected was based on 16 analyst estimates.
In a quarter, the company registered new orders for EUR 2,119.0 million. During the comparison period, orders amounted to EUR 2,049.2 million, and the quarter of the analysts’ forecast was EUR 2,029.2 million.
Reported earnings per share fell to EUR 0.47 from EUR 0.53.
Last year, the company’s Board of Directors proposed a dividend per share of EUR 1.80 for each B-Series share. Analysts expected an average of EUR 1.85 for a dividend proposal of 2024, with a dividend paid EUR 1.75 for the previous year.
For the whole year, the company’s adjusted operating profit settled to EUR 1 303.0 million, slightly higher than the previous year EUR 1,248.4 million. Orders received increased by 2.1 per cent to EUR 8,758.9 million.
In its business prospects, the company estimates that net sales will increase slightly with comparable exchange rates in 2025. The improved operating margin of operating profit is expected to continue.
Key drivers for revenue growth are positive prospects for maintenance and modernization businesses and a strong order backlog. The decline in the market for new construction solutions in China is a burden on growth prospects. The key drivers of profitability are the growth of net sales in maintenance and modernization businesses and programs to improve efficiency. Challenging new construction solutions market in China and the subscriptions of the order in 2024 in 2024 are expected to negatively affect profitability.
According to the company, market outlook is positive or stable from eleven to twelve markets. In the market for new construction solutions, activity is expected to vary regionally. Activity is expected to grow slightly in North America. In Europe, the market is expected to be stable. In the Asian and Pacific, the Middle East and Africa, the market is expected to grow clearly. In China, the market is expected to decline significantly.
“Our financial development in the last quarter of the year was once again an indication of the resilience of our business. Our growth continued at a good level, with more than 10 % outside China, both with orders and net sales. Service and modernization once again had a great quarter of a quarter as the turnover of both businesses increased in double digits. What important, the fourth quarter was the eighth consecutive quarter of profitability, ”CEO Philippe Delorme says in the company’s bulletin.
“Maintenance and modernization businesses were key drivers for earnings growth, while margin and delivery volumes in China again burdened the result.”