Schindler Holding AG: Sustained growth and improved profitability

OREANDA-NEWS. In the first half of 2015, Schindler continued on its growth path while, at the same time, improving its profitability. At CHF 4 977 million, orders received in Swiss francs were slightly higher than in the first half of 2014 (CHF 4 962 million), equivalent to an increase of 3.7% in local currencies.

Revenue grew by 3.5% to CHF 4 492 million (+7.4% in local currencies). Operating profit totaled CHF 476 million (first half of 2014: CHF 524 million – including the Mall of Switzerland extraordinary gain of CHF 82 million). Adjusted for this exceptional item, operating profit increased by 7.7% in Swiss francs and by 14.7% in local currencies. The EBIT margin was 10.6% (first half of 2014, comparable: 10.2%).

Net profit totaled CHF 358 million in the first half of 2015 and was 6.5% higher than the comparable figure of CHF 336 million for the first half of 2014 (CHF 371 million after exceptional items). Cash flow from operating activities improved by 17.7% to CHF 472 million.

Commenting on the financial results, CEO Silvio Napoli stated: “Our performance in the first half of 2015 underscores the successful implementation of our growth strategy. As we continue to expand our position in growth markets, we also gain scale. This is one of the requirements to achieve higher profitability.” He added: “Despite negative foreign exchange impacts, we were able to increase our revenue and operating profit in absolute terms and, at the same time, improved our EBIT margin. This encouraging increase in performance is the result of the organic development of our business combined with the consolidation of our Chinese joint venture, XJ-Schindler.”

Outlook for 2015

Schindler expects the global elevator and escalator market to show limited growth in 2015. China, the most important new installations market worldwide, is at most expected to achieve minimal growth this year. Other markets in Asia-Pacific and India are likely to achieve continued good growth in the second half of the year. In the Americas, Schindler expects to see further growth in the US market and a contraction in South America. Developments in Europe will remain mixed.

For the full year 2015, Schindler expects – excluding any unforeseeable events – ­revenue to grow by 6% to 8% in local currencies and that net profit will total CHF 700 million to CHF 750 million.