Schindler net profit posts modest lift

Elevator and escalator manufacturer Schindler said on Tuesday that the global economic downturn had impacted both orders and revenues.

First half profit was flat and the company warned that a drop in orders would have consequences for its fourth quarter results.

Net profit rose by two per cent, to SFr320 million ($296 million) in the first half of 2009 compared with the same period in 2008. Operating profit increased by 13 per cent.

Consolidated orders fell by 17.2 per cent to SFr6.075 billion. Consolidated operating revenue declined by 11.5 per cent to SFr5.969 billion over the same period.

“The elevators and escalators business takes a long time to react to economic developments. The decline in orders received in the new installation business in the first half of 2009 will begin to affect results in the fourth quarter of 2009 and will continue to have an impact in 2010,” the group said in a statement.

The group forecast 2009 net profit at the same level as last year, excluding “recession-related restructuring costs” estimated at around SFr100 million. Schindler reported 2008 net profit of SFr634 million.

Shindler’s technology group, ALSO, saw its net sales drop 21.8 per cent to SFr1.949 billion. It blamed a weak market for information technology products.

swissinfo.ch and agencies