Schindler achieved sales of 11.35 billion Swiss francs. That’s 1.0 percent more than in 2021, the Ebikon LU-based group announced on Wednesday. The growth in local currencies was 2.5 percent.
As a result, net profit fell 25.2 percent to CHF 659 million. Schindler said the year-over-year decline was due to inflation in raw materials and components, as well as supply chain issues. These would have a negative impact on productivity and project execution.
“In 2022, we are focused on building on our legacy and adapting our business to rapidly changing market conditions,” said Silvio Napoli, Chairman and CEO. Schindler has been avoiding low-margin projects for some time. Also, the group has too many elevator models to offer, which is expensive.
“The development in the last two quarters shows that the recovery has started. The next step is to relaunch the simplified platform for modular elevators,” Napoli explained.
less profitable
Profitability deteriorated significantly. Adjusted operating profit EBITDA fell 16.4 percent to CHF 1.05 billion. Operating margin decreased to 9.2 percent after 11.1 percent the previous year. Figures do not include certain items such as restructuring costs and expenses for the “Top Speed 23” agility program, Building Minds program.
If these are taken into account, EBITDA came to 904 million francs. That’s minus 22.5 percent compared to 2021. In numbers, Schindler exceeded analysts’ expectations.
Despite the decrease in profit, shareholders will receive a constant dividend of CHF 4.00 per share and certificate of participation.
The basis for future profits has shrunk a little. Incoming orders fell 1.7 percent to 11.96 billion Swiss francs. While the Americas and Europe, Africa, Middle East regions have grown, there has been a significant decline in the Chinese new equipment market. The modernization and service areas continued to grow and softened the decline in new systems.
Slight growth expected
For 2023, Schindler projects low single-digit revenue growth in local currencies, except for unexpected events. Due to the global economic slowdown and pressure on the real estate and construction sectors, Schindler expects further declines in new facilities, while modernization and services are expected to continue to grow in all regions.
The group is counting on further increasing efficiency to be prepared for this challenging situation. As in previous years, the group profit forecast for 2023 will be announced with the announcement of the half year results. (SDA/kae)
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.
