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Adjusted operating profit EBIT increased by 19.9 percent to 1.26 billion francs, the Swiss-based company announced in a statement published on Wednesday. Operating margin increased to 10.9 percent, after 9.2 percent in the previous year. The figures do not include some items such as the “Top Speed 23” agility program, restructuring costs, real estate sales and spending on the Building Minds program.
Considering these, EBIT increased by 31.4 percent to 1.19 billion francs. As a result, net profit increased by 41.9 percent to 935 million francs.
However, sales slowed down due to the strong franc. Schindler’s total turnover was 11.49 billion francs. This is 1.3 percent more than in 2022. It was said that the exchange rate effect would reduce sales by 688 million francs. Growth in local currencies reached 7.4 percent.
By the numbers, Schindler exceeded analysts’ expectations, except for incoming orders. The group also fell somewhat short of its own targets. Schindler had targeted sales growth of 6 to 8 percent in local currencies and consolidated profits of 880 to 910 million francs.
Shareholders now need to receive more dividends: Schindler wants to pay 5.00 francs per share and participation certificate. This includes a special dividend of 1.00 francs to celebrate the group’s 150th anniversary. This was the highest dividend since 2016, when 5.00 francs were also distributed, including a special payment.
But the basis for future results has narrowed somewhat. Order intake fell 4.4 percent to 11.44 billion francs.
Schindler expects sales growth in the low single-digit range in local currencies for 2024, barring any unexpected events. EBIT margin needs to reach 11 percent. As in previous years, the consolidated profit forecast for 2024 will be announced with the announcement of the half-year results. In the medium term, the company wants to further increase its competitiveness and achieve an EBIT margin of 13 percent.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
