Schindler makes more profit after nine months despite lower sales
Published: Thursday, Oct 17th 2024, 07:00
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The elevator and escalator manufacturer Schindler faced headwinds in the first nine months of the year. Sales and incoming orders shrank. On the other hand, profits rose.
From January to September, sales fell by 1.8 percent to 8.38 billion Swiss francs, as the Central Swiss company announced in a press release on Thursday. The strong franc had a negative impact on revenue. Foreign currency effects cost 307 million francs in sales.
Adjusted operating profit EBIT climbed by 7.6% to CHF 987 million. The operating margin improved to 11.8 percent from 10.7 percent in the previous year. The figures do not include certain items such as restructuring costs and expenses for the Building Minds program.
Taking these into account, EBIT rose by 5.9% to CHF 945 million. At the bottom line, net profit improved by 8.2% to CHF 748 million.
Schindler's figures missed analysts' expectations in terms of turnover, but exceeded them in terms of profit.
However, the basis for future results has shrunk somewhat. Incoming orders fell by 1.3 percent to 8.48 billion Swiss francs.
Previous outlook confirmed
In its outlook, Schindler confirms its sales forecast for the year as a whole. Accordingly, the Group anticipates sales growth in local currencies in the low single-digit percentage range and an EBIT margin of 11 percent. This includes restructuring costs of CHF 80 million.
Schindler once again refrained from issuing a profit forecast for the year as a whole. In 2023, Schindler had achieved a net profit of 935 million.
Share buyback program of 500 million
Schindler also announced a share buyback program for registered shares and participation certificates (PS) with a total value of up to CHF 500 million. This is to begin in November 2024 and be completed by November 2026 at the latest.
The program is to be executed via second trading lines on the SIX Swiss Exchange. The Board of Directors intends to propose capital reductions at future Annual General Meetings by canceling the repurchased registered shares and PS.
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