UPDATE 2-Lift maker Kone hikes 2010 view after strong Q3

Published 10/19/2010, 07:07 AM

* Q3 EBIT 185 mln euros vs 168 mln avg fcast in Reuters poll

* Order intake 865 million euros vs 852 million in poll

* Upgrades 2010 sales, EBIT forecasts

* Sees 2010 sales up 2-6 pct y/y, EBIT of 660-690 mln euros (Adds analyst's comment, updates share price)

By Terhi Kinnunen

HELSINKI, Oct 19 (Reuters) - Strong demand in Asia boosted Kone's third-quarter profits above expectations, and the Finnish lift and escalator maker raised its 2010 sales and profit forecasts, sending its shares higher.

Shares in Kone were up 5 percent at 37.96 euros by 1046 GMT, while the STOXX Europe 600 Industrial Goods and Services Index was up 0.7 percent.

July-September operating profit rose 15 percent from a year ago to 185 million euros ($257 million), beating all analysts' forecasts in a Reuters poll that ranged from 164 million to 176 million euros.

Sales grew around 10 percent to 1.24 billion euros, also beating forecasts.

"The report was excellent," said analyst Pekka Spolander from Pohjola Bank.

Kone said it expected good demand to continue from the Asia-Pacific region and upgraded its guidance for the year, saying it expected 2010 net sales to rise 2-6 percent, with operating profit between 660 million and 690 million euros.

It had previously forecast flat full-year net sales and operating profit between 630 and 660 million euros.

Analysts had to some extent anticipated strong demand ahead of the results with a consensus sales growth estimate of 2.2 percent for 2010 and a 659 million euros average operating profit forecast.

(Reporting by Terhi Kinnunen; Editing by Elaine Hardcastle) ($1=.7193 Euro)

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