Kone Oyj, the elevator supplier to London’s Shard skyscraper, fell the most in three months after third-quarter order growth missed analyst estimates.
Kone dropped as much as 3.4 percent, the steepest intraday decline since July 22, and was trading down 0.8 percent at 66.75 euros at 2:23 p.m. in Helsinki. That pared the stock’s gain this year to 20 percent, valuing the manufacturer at 17.4 billion euros ($23.8 billion).
New sales contracts in the quarter rose 2.4 percent from a year earlier, slowing the nine-month order increase to 12 percent, amid a “mixed” global market, the Espoo, Finland-based company said in a statement today. Demand for new and replacement equipment in Europe “continued to decline” amid a general economic “weakness” and delays in construction projects, Kone said.
“Orders were a little bit soft,” Pekka Spolander, an analyst at Pohjola Bank Oyj in Helsinki said by phone. “Unfavorable currency exchange rates explain a part of it, but not all.”
Third-quarter net income rose 13 percent from a year earlier to 203 million euros, exceeding analyst estimates by 2.8 percent. Kone proposed an extra dividend of 1.30 euros per B-class share, and its board is seeking a share split that shareholders will vote on at a meeting in December.
Last month, Kone raised its forecast for the third time this year, citing strong demand in China due to the economy’s improved liquidity, even as it predicted slowing industry growth. A track record that has helped Kone quadruple its market value in five years has raised investor expectations to an almost unattainable level, according to Spolander.
“It’s a case where nothing is quite enough,” the Pohjola Bank analyst said. “When people have come to expect at least the norm and rather a bit more from Kone, the slightest soft spot isn’t good enough, even if it’s a good figure as such.”