HELSINKI (Reuters) -Finnish elevator maker Kone reported on Thursday a smaller-than-expected rise in third-quarter adjusted operating profit and narrowed its 2024 margin outlook to a lower range, citing a decline in its margin in China.
Adjusted operating profit in July-September was 319 million euros ($344.17 million), against 316 million euros a year earlier and below a mean forecast of 340 million euros in an analyst poll compiled by Vara.
CEO Philippe Delorme said the market for new equipment weakened further in China.
“On the negative side, we saw a decline in our margin in China, increase in bad debt provisions and cost increases driven by inflation,” he said.
Kone, which also makes escalators, moving walkways and automatic building doors, said it now expects a full-year adjusted group operating profit margin of between 11.5 and 11.9%, lowering the upper range from previous 12.2%.
It also narrowed its sales growth outlook to 0–3% from 0–4% at comparable exchange rates.
($1 = 0.9269 euros)
(Reporting by Anne Kauranen in Helsinki, editing by Louise Rasmussen)
