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2015-04-22

KONE Oyj: Interim Report of KONE Corporation for January-March 2015

KONE Corporation, stock exchange release, April 22, 2015 at 12.30 p.m. EET

Interim Report of KONE Corporation for January-March 2015

January-March 2015: A good start to the year

* In January-March 2015, orders received totaled EUR 2,054 (1-3/2014: 1,730)
million. Orders received grew by 18.7% at historical exchange rates and by
5.5% at comparable exchange rates. The order book stood at EUR 8,530 (March
31, 2014: 6,175) million at the end of March 2015.
* Net sales grew by 17.3% to EUR 1,691 (1,442) million. At comparable
exchange rates the growth was 7.1%.
* Operating income was EUR 211.9 (179.6) million or 12.5% (12.5%) of net
sales.
* Cash flow from operations (before financing items and taxes) was EUR 212.2
(325.4) million.
* KONE specifies its operating income outlook for 2015. KONE's net sales is
estimated to grow by 6-9% at comparable exchange rates as compared to 2014.
The operating income (EBIT) is expected to be in the range of EUR
1,140-1,230 million, assuming that translation exchange rates would remain
at approximately the average level of January-March 2015. KONE's previous
outlook for its operating income (EBIT) was EUR 1,130-1,230 million,
assuming that translation exchange rates would have remained at
approximately the average level of January 2015.

Key Figures

----------------------------------------------------------------------
| 1-3/ 1-3/ 1-12/ |
| |
| 2015 2014 2014 |
| Orders received MEUR 2,053.8 1,729.7 6,812.6 |
| Order book MEUR 8,529.6 6,175.4 6,952.5 |
| Sales MEUR 1,690.9 1,441.8 7,334.5 |
| Operating income (EBIT) MEUR 211.9 179.6 1,035.7 |
| Operating income (EBIT) % 12.5 12.5 14.1 |
| Cash flow from operations MEUR 212.2 325.4 1,345.4 |
| |
|(before financing items and taxes) |
| Net income MEUR 151.1 143.3 773.9 |
| Basic earnings per share EUR 0.29 0.28 1.47 |
| Interest-bearing net debt MEUR -584.4 -371.3 -911.8 |
| Total equity/total assets % 36.7 35.0 43.6 |
| Gearing % -33.4 -28.1 -44.2 |
| |
----------------------------------------------------------------------
Henrik Ehrnrooth, President and CEO, in conjunction with the review:

"I am pleased with our good start to the year. Orders received totaled EUR
2,054 million, with a growth of 18.7% at historical and 5.5% at comparable
exchange rates. Favorable translation exchange rates had a very positive
impact on our reported figures. Sales was EUR 1,691 million, with a growth of
17.3% at historical and 7.1% at comparable rates. Our sales growth
accelerated from the end of last year and sales grew in all geographic
regions, with good growth in both Asia-Pacific and the Americas. Operating
income developed positively and was EUR 212 million. Our cash flow was
clearly lower than last year but it was solid at the level of the operating
income, EUR 212 million.

I want to express my thanks to our employees for their efforts and commitment.
These together with our strong culture are the most important drivers of our
good development.

For the most part, markets developed in line with our expectations in the
beginning of the year. In new equipment and modernization, market development
was overall rather subdued in Europe, but North America remained on a good
growth trajectory. In maintenance, both regions continued to grow, but with
varying development trends. In Asia-Pacific, the new equipment market in
China was rather stable at the previous year's good level as expected, but
uncertainty in the market increased somewhat. Maintenance markets in the
region continued to develop well.

Despite the overall lower new equipment market growth as compared to last year
and increased price pressure, we continue to see good opportunities for
profitable growth in all regions and businesses. Our good performance during
the first quarter shows again that the investments we have made in the
development of our competitiveness, as well as our sales capabilities, are
delivering results. Going forward, we will continue increasing our
investments in the development of innovative solutions and services for our
customers as well as the improvement of our cost competitiveness. Our
development programs provide a clear roadmap on how we will deliver upon
these actions. I am confident that with the strong execution of our team, we
will continue on a good development path."

Operating environment in January-March 2015

In the first quarter of 2015, the global new equipment market was rather
stable overall. In Asia-Pacific, growth in the new equipment market leveled
off, with the market volumes in China remaining approximately at the previous
year's high level. In the Europe, Middle East and Africa (EMEA) region, the
market declined slightly. In North America, the market continued to grow. The
major projects segment grew in the quarter, driven by activity in
Asia-Pacific. The modernization market grew in North America, but was on a
more stable trend overall in Europe. Maintenance markets grew globally,
although at low rates in such countries, where new equipment activity has
been weak for the past years.

Market outlook 2015

In new equipment, the market in Asia-Pacific is expected to grow slightly in
2015, with the expectation that the market in China will remain at the good
level of 2014 or grow slightly. In the Europe, Middle East and Africa region,
the market is expected to be rather stable. In Central and North Europe, the
market is expected to be stable or grow slightly, while in South Europe it is
expected to remain at a weak level. In the Middle East, the market is
expected to be stable at the previous year's level. The market in North
America is expected to continue to grow.

The modernization market is expected to remain rather stable in Europe, but to
continue to grow in North America and Asia-Pacific. This is expected to
result in a rather stable or slightly growing market globally.

The maintenance markets are expected to develop rather well in most countries.

Business outlook 2015

KONE specifies its operating income outlook for 2015.

KONE's net sales is estimated to grow by 6-9% at comparable exchange rates as
compared to 2014.

The operating income (EBIT) is expected to be in the range of EUR 1,140-1,230
million, assuming that translation exchange rates would remain at
approximately the average level of January-March 2015.

Previous business outlook

In 2015, KONE's net sales is estimated to grow by 6-9% at comparable exchange
rates as compared to 2014.

The operating income (EBIT) is expected to be in the range of EUR 1,130-1,230
million, assuming that translation exchange rates would remain at
approximately the average level of January 2015.

Press and analyst meetings

A meeting for the press, conducted in Finnish, will be held on Wednesday,
April 22, 2015 at 2:15 p.m. EET.

A meeting for analysts, conducted in English, will begin at 3:45 p.m. EET. The
meeting will be available as a live webcast on www.kone.com. The meeting
participants can also join a telephone conference that will be arranged in
conjunction with the meeting. The telephone conference details can be found
below.

Both meetings will take place in the KONE Building, located at Keilasatama 3,
Espoo, Finland.

Telephone conference numbers:

US callers: +1 334 323 6203
UK callers: +44 (0)207 1620 177
Finnish callers: +358 (0)9 2313 9202

Participant code: KONE

An on-demand version of the webcast will be available on www.kone.com later
the same day.

For further information, please contact:

Katri Saarenheimo, Director, Investor Relations, tel. +358 204 75 4705

Sender:

KONE Corporation

Henrik Ehrnrooth
President and CEO

Eriikka Söderström
CFO

About KONE

KONE is one of the global leaders in the elevator and escalator industry.
KONE's objective is to offer the best People Flow® experience by developing
and delivering solutions that enable people to move smoothly, safely,
comfortably and without waiting in buildings in an increasingly urbanizing
environment. KONE provides industry-leading elevators, escalators, automatic
building doors and integrated solutions to enhance the People Flow in and
between buildings. KONE's services cover the entire lifetime of a building,
from the design phase to maintenance, repairs and modernization solutions. In
2014, KONE had annual net sales of EUR 7.3 billion, and at the end of the
year over 47,000 employees. KONE class B shares are listed on the NASDAQ OMX
Helsinki Ltd. in Finland.

www.kone.com

KONE_Q1_2015_Interim_Report
http://hugin.info/3057/R/1913358/683287.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: KONE Oyj via Globenewswire

HUG#1913358

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