Schindler Holding AG: Continued growth and improved profitability

OREANDA-NEWS. In the reporting period Schindler recorded continued improvements in orders received, revenue and net profit. Orders received increased by 3.9% in local currencies but decreased in Swiss francs by 0.7% to CHF 7 361 million due to negative foreign exchange impacts.

Revenue in Swiss francs grew by 2.2% to CHF 6 802 million and by 7.3% in local currencies.

Operating profit and net profit were impacted by exceptional items in 2014. For the first nine months 2015, comparable operating profit (EBIT) totaled CHF 725 million which represents an increase of 7.7% in Swiss francs and of 16.8% in local currencies. The improvement in the third quarter 2015 was 7.8% in Swiss francs and 20.8% in local currencies. For the first nine months the EBIT margin reached 10.7% compared to 10.1% in the same period of the previous year. In the third quarter an EBIT margin of 10.8% was achieved (third quarter of 2014: 10.0%). In the first nine months the comparable net profit improved by 5.7% to CHF 553 million compared to the same period of the previous year.

Commenting on the results, CEO Silvio Napoli stated: “We continue to deliver on our commitment to generate both top and bottom line growth in local currencies. The fact that this was achieved despite headwinds in some markets confirms that the execution of our growth strategy is on track.”

Outlook for 2015

Schindler expects the global elevator and escalator market not to achieve any growth this year. For the full year 2015, Schindler continues to expect that – excluding any unforeseeable events – revenue will grow by 6% to 8% in local currencies and that net profit will total CHF 700 million to CHF 750 million.