Wed, Feb 14th 2024
Schindler bounces back with a significant profit increase in 2023, driven by enhanced operating efficiency, supply chain recovery, and strategic pricing, marking its best performance since 2018.
Schindler has made a strong comeback this year, reporting a significant uplift in its profit margins. The renowned elevator and escalator manufacturer revealed in a recent press release that its adjusted operating profit (EBIT) surged 19.9% to CHF 1.26 billion. This improvement in profitability is highlighted by an enhanced operating margin of 10.9%, up from 9.2% the previous year, excluding specific items like the “Top Speed 23” agility program and other restructuring costs.
The comprehensive EBIT, including all effects, rose impressively by 31.4% to CHF 1.19 billion. Schindler attributes this growth to increased operational efficiency, the recovery of supply chains, and the positive impacts of its pricing strategies.
The net profit increased, soaring by 41.9% to 935 million francs, marking the company’s best result since 2018. However, the solid Swiss franc posed a challenge, dampening sales growth, which saw a modest increase of 1.3% to 11.49 billion Swiss francs. Despite this, local currency growth stood at a robust 7.4%.
Schindler’s performance exceeded expectations, with growth across all product lines and regions, although China experienced a slight decline. To celebrate this achievement and the company’s 150th anniversary, Schindler announced a higher dividend of CHF 5.00 per share, including a special CHF 1.00 dividend.
However, the future presents uncertainties as incoming orders dipped by 4.4% to 11.44 billion Swiss francs, mainly due to currency impacts. Nevertheless, the company remains optimistic about its service and modernization business growth.
Schindler’s “Top Speed 23” program has successfully enhanced digital connectivity and competitiveness, paving the way for future sales growth and an expected EBIT margin increase to 11% in 2024.
The board will also see new faces, with ETH Professor Thomas Zurbuchen and Economiesuisse President Christoph Mäder slated to join, bringing fresh perspectives to Schindler’s strategic direction.
©Keystone/SDA
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