# Elevator maker Kone hikes outlook as Q1 profit, orders beat forecasts
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Kone Elevator Maker Raises Outlook After Q1 Beat
Meta Description: Finnish elevator maker Kone surpasses market expectations with strong Q1 performance and increases sales forecast for 2023.
URL: https://financedigest.com/elevator-maker-kone-hikes-outlook-as-q1-profit-orders-beat-forecasts-2html

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# Elevator maker Kone hikes outlook as Q1 profit, orders beat forecasts

(Reuters) -Finnish elevator maker Kone raised its 2023 sales outlook on Wednesday after its first-quarter profit beat market expectations supported by strong demand in its modernization business.

Kone shares traded around 4% higher at 1041 GMT.

The Helsinki-listed company sees full-year sales “somewhat above” 2022 levels at comparable exchange rates. It had previously guided for 2023 [sales in line with last year’s](https://www.financedigest.com/e-prescribing-market-sales-revenue-to-substantially-surge-in-the-next-ten-years.html "E-Prescribing Market Sales Revenue to Substantially Surge in the Next Ten Years").

Kone said it still expects construction activity in China, which makes up about 30% of its total sales, to start recovering towards the end of the first half of 2023.

Global [supply chain disruptions eased](https://www.financedigest.com/european-shares-rise-on-easing-energy-supply-worries-draghi-speech-in-focus.html "European shares rise on easing energy supply worries; Draghi speech in focus") at the turn of the year, aided by the end of aggressive COVID-19 lockdowns in China.

[Kone’s adjusted operating profit](https://www.financedigest.com/elevator-maker-kone-hikes-outlook-as-q1-profit-orders-beat-forecasts.html "Elevator maker Kone hikes outlook as Q1 profit, orders beat forecasts") rose 23.1% to 241.9 million euros ($267.18 million) in the first quarter, ahead of analysts’ estimate of 221.6 million euros in a company-provided poll.

Order [momentum was solid considering the market](https://www.financedigest.com/innovation-based-sanity-to-maintain-the-momentum-of-dermatophytic-onychomycosis-therapeutics-market.html "Innovation-Based Sanity To Maintain The Momentum Of Dermatophytic Onychomycosis Therapeutics Market") backdrop,” CEO Henrik Ehrnroot said in an earnings statement.

Kone’s order intake fell 6.6% in the quarter to 2.26 [billion euros](https://www.financedigest.com/volkswagen-boosts-electric-car-investment-in-spain-to-10-billion-euros.html "Volkswagen boosts electric car investment in Spain to 10 billion euros"), but exceeded the 2.14 billion euros expected by analysts.

Orders for new equipment were weighed down by low activity in Kone’s main market China, where [property developers’ access to financing](https://www.financedigest.com/bridging-finance-for-property-development.html "Bridging Finance for Property Development") remained constrained in the quarter, Ehrnroot said.

Kone expects the new [equipment market](https://www.financedigest.com/warewashing-professional-equipment-market-is-projected-to-reach-us-6-94-bn-by-2027.html "Warewashing Professional Equipment Market is Projected to Reach US$ 6.94 Bn by 2027") in China to decline “close to” 10% this year. It had earlier [forecast a decline of “somewhat over” 10%](https://www.financedigest.com/electrodeposited-copper-foils-market-is-anticipated-to-expand-at-a-cagr-of-close-to-10-over-the-forecast-period-of-2021-2031.html "Electrodeposited Copper Foils Market Is Anticipated To Expand At A CAGR Of Close To 10% Over The Forecast Period Of 2021-2031").

Meanwhile, its [services business](https://www.financedigest.com/lockdown-unlocked-testimonials-of-hospitality-businesses-reinventing-the-service-experience.html "Lockdown Unlocked:  Testimonials of hospitality businesses reinventing the service experience") delivered “yet another excellent quarter”, Ehrnroot said.

($1 = 0.9054 euros)

(Reporting by Greta Rosen Fondahn and Elviira Luoma in Gdansk; Editing by Milla Nissi, Alexandra Hudson)


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