At the start of the year, the lift and escalator manufacturer Schindler felt, among other things, the strength of the Swiss franc and the ailing construction industry. However, incoming orders remain high and new products are beginning to be well received. Sales fell by 4.4 percent to 2.67 billion francs.
In local currencies it would have increased by 1.1 percent, as the central Swiss company announced. Schindler noticed that less construction was taking place in the new plant business. Demand remained subdued, particularly in China.
Legend: The central Swiss lift manufacturer remains on course despite falling sales. Keystone/Archive/URS FLUEELER
Things went better with modernization and service. According to the report, the lift manufacturer generated approximately more sales in the EMEA (Europe, Middle East and Africa) and America regions than in the same quarter of the previous year. In addition, the new standardized elevator platform introduced on the European market at the beginning of the year also achieved initial success. This has already accounted for around 40 percent of new business in the EMEA region, it goes on to say. The modular offering is expected to be launched worldwide in the next 18 months.
Profitability improved
Meanwhile, Schindler made progress in terms of profitability: the company increased its operating profit (EBIT) by 3.5 percent to 292 million francs. The EBIT margin climbed to 10.9 percent after 10.1 percent in the previous year. The bottom line was that Schindler achieved a net profit of 232 million francs. This corresponds to an increase of 9.4 percent compared to the same period last year. Meanwhile, incoming orders fell by 3.4 percent to 2.79 billion francs. However, this still means that more orders come in than Schindler processes.
With the figures, Schindler missed analysts’ expectations in terms of sales and growth in local currencies, but exceeded them in terms of EBIT and net profit.
Schindler remains true to his chosen course
“We defied the challenging conditions in the construction sector in the first quarter with price discipline and measures to increase efficiency. We remain true to our chosen course,” said CEO and Chairman of the Board of Directors Silvio Napoli in the statement. Accordingly, Schindler is sticking to its sales forecast for 2024. The group therefore expects sales growth in local currencies in the lower single-digit percentage range. The EBIT margin is expected to rise to 11 percent. As in previous years, the forecast for consolidated profit for 2024 will be announced with the publication of the half-year results.