2 Min Read
HELSINKI (Reuters) - Elevator-maker Kone posted weaker-than-expected first-quarter core earnings on Wednesday and trimmed its full-year outlook, hit by supply chain constraints and a decline in its China business even as overall order intake increased.
January-March operating profit fell to 171.1 million euros ($181.6 million) from 249.8 million euros a year earlier, missing the 225.8 million euro estimate of ten analysts polled by Refinitiv.
Kone’s order intake rose to 2.42 billion euros in the first quarter from 2.08 billion a year ago.
The company’s share price rose by 1.9% at 1001 GMT, outperforming a 1.3% rise in Finland’s benchmark stock index.
“As sanctions imposed on Russia and COVID-19 related restrictions in China intensify the strain on global supply chains, taking further actions to clearly improve our margins remains our top priority,” Chief Executive Henrik Ehrnrooth said in a statement.
“Based on the progress we have made, I am confident that we can overcome these headwinds,” he added.
Kone now expects revenue to grow by between 2% and 5% this year, down from an earlier projection of 2-7%, while adjusted operating income is seen in the range of 1.18 billion-1.28 billion euros against 1.18 billion-1.33 billion seen earlier.
($1 = 0.9423 euros)
Reporting by Anne Kauranen and Terje Solsvik, editing by Gwladys Fouche
