Elevator maker Kone Q3 misses on earnings as China, supply disruptions weigh


HELSINKI, Oct 28 (Reuters) – Elevator maker Kone (KNEBV.HE) posted weaker-than-expected third quarter core earnings as uncertainty within the Chinese property sector, supply chain issues and rising materials prices harm profitability, driving its shares down greater than 5%.

“Activity in the Chinese property sector showed signs of tempering, as uncertainty around liquidity constraints increased in the quarter,” Chief Executive Henrik Ehrnrooth mentioned in an announcement.

Kone expects logistics and part prices to rise in direction of the tip of the yr.

The Finnish firm trimmed its estimate vary for annual income and now expects its 2021 adjusted working revenue margin to be 12.4-12.8% from 12.4-13%.

Kone’s shares had been final down 5.3% at 55.68 euros.

Investors have been on the lookout for any indicators of fallout from China’s property growth sector after the world’s most indebted developer China Evergrande Group’s difficulties to repay money owed unfold to different firms there.

Kone’s order consumption, a sign of future income, grew 14.5% year-on-year to 2.21 billion euros and quarterly gross sales remained steady at 2.6 billion, lacking the two.7 billion euro consensus estimate.

July-September working revenue fell to 326.5 million euros ($378.22 million) from 333 million a yr earlier, lacking the 348 million estimate of 13 analysts polled by Refinitiv.

($1 = 0.8633 euros)

Reporting by Essi Lehto; modifying by Jason Neely

Logo is displayed in an elevator at the KONE Academy of Finish elevators and escalators manufacturer KONE in Hanover, Germany, February 6, 2020. Picture taken February 6, 2020.  REUTERS/Fabian Bimmer