Elevator maker Kone (KNEBV.HE) 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)