Finnish elevator maker Kone reported a rise in second-quarter sales and profitability, as strong growth in its service and modernization businesses offset a continued slump in China's new equipment market.
Sales for the April-to-June period grew 1.8% to 2.85 billion euros, while the company's adjusted operating profit margin increased to 12.2% from 11.9% a year earlier, the company said.
The results were driven by a nearly 10% increase in service sales and an almost 20% jump in modernization sales.
"Service sales grew again by nearly 10% and is now our largest business," Chief Executive Philippe Delorme said in a statement.
Mr. Delorme added that the performance in services helped to "mitigate ongoing margin pressure in the Chinese new equipment market."
Kone said the global market for new building solutions declined clearly during the quarter, mainly due to weak conditions in China's property market, while service and modernization markets grew in all regions.
The company narrowed its full-year sales growth forecast to a range of 2% to 5% at comparable exchange rates, from a previous estimate of 1% to 6%.