Q2 2024 Kone Oyj Earnings Call Transcript
Key Points
- Strong service sales growth at 9% and record high modernization orders.
- Sixth consecutive quarter of profitability improvement.
- Double-digit growth in orders in three out of four areas.
- Employee engagement improved and is well above the global benchmark.
- Solid cash flow from operations at EUR 330 million.
- Challenging market conditions in China, leading to a downgrade in market outlook.
- Significant decline in new building solutions sales driven by China.
- Persistent cost inflation increasing fixed costs.
- Logistics challenges in the Red Sea affecting inventory levels.
- Slight decline in the book-to-bill ratio in China, indicating slower order book rotation.
Good morning and welcome to KONE's Q2 results presentation. I'm Sanna Kaje, Head of KONE's Investor Relations, and I have here with me today our President and CEO, Philippe Delorme; and CFO Ilkka Hara.
But before I let Philippe and Ilkka present today, a short notification. We've heard that there are currently some global telecoms issues and there is a risk at the moment that we might not be able to take your questions online. So I wanted to give that as a heads up, but let's see how things develop. But with that, I'll hand over to Philippe.
Good morning, Sanna and good morning, everyone. Glad to be with you today. So I'd like to start by sharing a couple highlights from the quarter. First and foremost, I'm very pleased that the focus on service and modernization is delivering results. We saw again strong service sales growth at 9% and record high modernization holders. We also saw the sixth consecutive quarter of
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