Kone Oyj Company Profile

Kone Oyj

Manufacturing

Establishment Year
1910
Headquarters
Finland
Key Management
Mr. Henrik Ehrnrooth (President)
Revenue (US$ Mn)
~ 11,906.2 (2021)
Headcount
~ 62,951 (2021)
Website
www.kone.com

Business Description

Kone Oyj produces elevators, escalators, and automatic building doors. It offers solutions and services throughout the entire life cycle of building projects, from the supply and installation of new equipment to maintenance and repair. It serves many sectors, including hotels, leisure facilities, and public spaces, as well as residential and commercial buildings, shopping centers, supermarkets, and railway stations.

The company has three reported business segments: New Equipment, Maintenance, and Modernization. At the end of FY2019, there were more than 150 subsidiaries. It operates in 60 countries and has authorized distributors and agents in over 100. The Espoo, Finland-based company was established in 1910.

Key Financials

Revenue (US$ Mn):

Kone Oyj’s annual revenue for 2021 was US$ 11,906 Mn, a 0.12% increase from 2020
From 2019’s annual revenues, Kone Oyj registered an 8.19% increase in 2020, amounting to US$ 11,892 Mn
Total revenue of US$ 10,991 Mn was generated in 2019 by Kone Oyj

Operating Income(US$ Mn):

The operating income generated by Kone Oyj in 2021 was US$ 283 Mn
At a 10.52% increase, Kone Oyj’s operating income of US$ 1,451 Mn was indexed in 2020
Kone Oyj generated an operating income of US$ 1,313 Mn in 2019

Net Income(US$ Mn):

Kone Oyj indexed a -86.86% decrease in net incomes from 2020, amounting to US$ 149 Mn in 2021
Kone Oyj generated a net income of US$ 1,134 Mn in 2020
A net income of US$ 1,034 Mn was indexed by Kone Oyj in 2019

Operating Margin % :

Kone Oyj’s operating margin for 2021 was 2%, a -81.15% decrease from 2020
From 2019’s operating margins, Kone Oyj registered a 2.52% increase in 2020, amounting to 12%
An operating margin of 12% was generated in 2019 by Kone Oyj

SWOT Analysis

Strengths

Territorial Presence

KONE’s extensive territorial presence allows it to gain access to major markets around the globe and increases its market share. The presence in a larger region reduces dependence on one market. The company is currently operating in 60 countries.

The company has agents and distributors in almost 100 countries. More than 500,000 customers worldwide. It operates manufacturing units in Europe, Asia Pacific, and the Americas.

R&D is the focus

Kone’s research and development (R&D), efforts lead to the development of innovative products which aid Kone’s growth. It is focused on R&D to develop new products using advanced technology. It also works to improve its current solutions and services.

The company has 9 R&D centers around the world. It spent EUR170.9million on R&D in FY2019. This was 1.7% of its total revenue. It had over 3,000 patents as of December 2019. The company launched a digital platform and renewed its product and service portfolio.