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Finnish elevator maker Kone cuts 2022 outlook after weak China sales
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HELSINKI (Reuters) -Elevator maker Kone on Thursday lowered its sales and profit outlook for this year due to lower-than-expected second quarter sales and weakened new equipment market outlook in China.
HELSINKI (Reuters) -Elevator maker Kone on Thursday lowered its sales and profit outlook for this year due to lower-than-expected second quarter sales and weakened new equipment market outlook in China.
Lockdowns to curb the spread of coronavirus in China, which accounts for 35% of Kone’s sales, had resulted in net sales declining by close to 40% in comparable currencies in the country, the company said in a statement.
Kone now expects its 2022 adjusted operating profit to be between 1.13 billion and 1.21 billion euros ($1.12-$1.21 billion) down from a previous forecast of between 1.18 and 1.28 billion euros.
Sales growth is now seen at between -1% and 3% compared to the previously guided range of growth of 2-5%.
($1 = 0.9984 euros)
(Reporting by Essi Lehto, editing by Stine Jacobsen)
Adjusted operating profit is a measure of a company's profitability that excludes certain non-recurring items, providing a clearer view of ongoing operational performance.
Net sales refer to the total revenue from goods sold or services provided, minus returns, allowances, and discounts. It reflects the actual income generated from sales.
The new equipment market involves the sale of newly manufactured equipment, such as elevators, which is influenced by factors like demand, economic conditions, and market trends.
Sales growth measures the increase in sales over a specific period, expressed as a percentage. It indicates how well a company is expanding its revenue.
Lockdowns can significantly reduce sales by limiting business operations and consumer access, leading to decreased demand and revenue, as seen in various industries during the COVID-19 pandemic.
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