Jan. 24 (Bloomberg) -- Kone Oyj, the Finnish elevator supplier to London’s Shard skyscraper, dropped the most in three months after profit missed analyst estimates and the company said the European market for new equipment will fall this year.
Kone declined as much as 4.6 percent, the biggest intraday drop since Oct. 23, and was down 2.5 percent at 57.45 euros as of 3:27 p.m. in Helsinki, where the company is based. The volume traded was more than double the three-month daily average and it was the third-biggest drop on the benchmark OMX Helsinki 25 Index today.
Fourth-quarter net income declined 27 percent to 180 million euros ($240 million) from a year earlier, the company said in a statement today. That missed the 193.3 million-euro average estimate of analysts surveyed by Bloomberg. Kone forecast that this year’s earnings before interest and taxes will be 840 million euros to 920 million euros.
“Expectations have got out of hand,” Pekka Spolander, an analyst at Pohjola Bank Oyj, said by telephone. The consensus estimate for this year’s operating income “was 940 million euros, while Kone’s upper range now ends at 920 million euros.”
For new equipment, the market in central and north Europe will “decline slightly” this year and south Europe will “further decline from an already weak level,” Kone said in today’s statement.
“In 2013 we expect the markets to be mixed in a way similar to 2012,” Chief Executive Officer Matti Alahuhta said in the statement. “We look forward to 2013 with confidence on the basis of our high order book, strong positions in Asia, and our extensive efforts in developing our competitiveness.”
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