(Adds details, CEO comments)
July 17 (Reuters) - Finland-based engineering firm Kone reported a surprise rise in second-quarter profit on Friday helped by recovering demand for elevators and escalators in China.
Kone's operating profit of 315.5 million euros (360 million) topped the 246.8 million expected by analysts, Refinitiv Eikon data showed.
"In the second quarter, we had a strong performance in a very challenging environment," Chief Executive Henrik Ehrnrooth said in a statement.
Kone said its new orders fell 9.4% from a year earlier.
"Orders received continued to develop very positively in China and in some European countries, while orders received in the rest of the world declined significantly," Ehrnrooth said.
Kone said it now sees 2020 sales falling 0-4% while it had earlier forecast for 0-10% fall in annual sales.
Shares in Kone were 1% lower at 65.30 euros.
$1 = 0.8758 euros Reporting by Tarmo Virki in Tallinn; editing by Jason Neely