The Schindler Group reported an increase in both orders received and operating revenue in the first nine months of 2008 compared to the same period of 2007. Net profit improved significantly with a rise of 17.3%. In the elevator and escalator business, orders received increased by 7.5% and by as much as 13.8% in local currencies. The EBIT margin was 10.2% for the first nine months and 10.6% for the third quarter, representing a further improvement.
Reporting period: January 1 to September 30, 2008
Consolidated orders received grew by 7.5% (+12.2% in local currencies) to CHF 11 044 million. Consolidated operating revenue totaled CHF 10 228 million, representing an increase of 3.0% compared to the first nine months of 2007 (+7.3% in local currencies).
Net profit rose by 17.3% to CHF 475 million.
Elevator and escalator business
EBIT margin exceeds 10%
Orders received rose by 7.5% to CHF 7 188 million in the first nine months of 2008 compared to the same period of 2007. In local currencies, growth of 13.8% was recorded. In the third quarter of 2008, orders received increased by 5.0% (+10.6% in local currencies) compared to the same period of 2007. All market regions contributed to this pleasing growth, although orders received declined in certain overheated markets in recent months.
Operating revenue increased by 0.4% to CHF 6 446 million in the first nine months of 2008, reflecting foreign exchange impacts, but grew by 6.2% in local currencies. Operating profit (EBIT) rose by 11.4% to CHF 655 million, corresponding to a margin of 10.2%. The EBIT margin was 10.6% in the third quarter.
Improved operating revenue and operating profit
In the first nine months of 2008, ALSO grew its operating revenue by 7.8% to CHF 3 782 million (+9.3% in local currencies) in a challenging economic environment characterized by declining demand and increased pressure on distributors’ margins. Operating profit rose by 16.0% to CHF 29 million.
The consolidated result of CHF –0.3 million was down marginally compared to the same period of last year (CHF 0.1 million), reflecting significantly higher financing costs and higher taxes. Various measures have been initiated to achieve a sustained improvement in net profit.
Significant increase in net profit
A profit of CHF 475 million was reported at Group level, representing an increase of 17.3%. This pleasing improvement was driven by a good performance in the elevator and escalator business.
As announced at the annual results media conference on February 28, 2008 – and excluding any unforeseeable events – Schindler expects to report a net profit of over CHF 630 million and an operating margin of at least 10% in its core business for the financial year 2008.