Finnish elevator and escalator maker Kone backed full-year guidance despite booking hefty costs related to its planned acquisition of German rival TK Elevator as well as restructuring measures.
The company announced in April plans to buy TK Elevator for around 20 billion euros ($22.80 billion) in a deal that would create the world's biggest elevator maker by sales. Costs related to the deal totaled 24.3 million euros in the second quarter, while restructuring and pension expenses brought overall one-offs in the quarter to 47.7 million euros.
Kone said it registered sales growth in its service and modernization businesses during the quarter, which offset a slight decline in new building work due to lower deliveries in Greater China.
Order intake grew 11% to 2.56 billion euros, buoyed by new building and modernization projects in the Americas, Europe, and Asia-Pacific, Middle East and Africa regions. Orders received in Greater China declined clearly, it said.
A Vara Research consensus forecast had seen order intake at 2.43 billion euros.
"The global new building solutions market declined slightly during the second quarter due to the continued weak market conditions in China," the company said. "Intense competition continued to impact the new building solutions pricing environment in China, while elsewhere pricing was more stable."
The company reported second-quarter adjusted earnings before interest and tax of 369.9 million euros, up from 347.2 million euros, as sales grew 3.1% to 2.94 billion euros. The adjusted EBIT margin rose to 12.6% from 12.2%.
A consensus forecast compiled by Vara Research forecast adjusted EBIT of 373.5 million on sales of 2.97 billion euros.
It still expects to report sales growth this year of 3%-6% at comparable exchange with an adjusted EBIT margin of 12.3%-13.0%.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
July 22, 2026 07:02 ET (11:02 GMT)
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