Schindler Holding AG: Successful execution of growth strategy

OREANDA-NEWS. As a result of the disciplined implementation of its strategy, Schindler succeeded in materially strengthening its position across the world’s largest markets in the reporting year. It delivered marked increases in orders received, revenue, EBIT margin and cash flow. Orders received improved by 4.6% in local currencies and revenue by 6.7%. However, the figures in Swiss francs were substantially affected by negative foreign exchange impacts. In Swiss francs, orders received declined by 0.1% to CHF 9 967 million, and revenue grew by 1.6% to CHF 9 391 million. Operating profit (EBIT)¹ and net profit² for the previous year were strongly impacted by exceptional items. On a comparable basis, EBIT rose by CHF 70 million to CHF 1 002 million, corresponding to an improvement of 7.5% (+16.8% in local currencies) and an EBIT margin of 10.7%. Before restructuring cost EBIT margin reached 11.0% in the reporting year. Net profit rose slightly to CHF 747 million and cash flow reached CHF 1 076 million.

Outlook for 2016

Schindler expects to see a slight decline in the global elevator and escalator market in 2016 due primarily to the weakening of the Chinese market. Pricing and currency pressures are expected to persist in many markets. However, the long-term drivers of growth remain intact: advancing urbanization, expanding middle classes, population aging and use of energy-efficient products. As a result, the elevator density per person will continue to increase, stimulating the elevator and escalator business.

The Group will pursue its growth strategy and its measures to improve profitability. Schindler expects to generate an increase in revenue of around 3% to 7% in local currencies for 2016. As in the past, Schindler will issue its net profit 2016 forecast in combination with its half-year results.