Schindler recorded a 5.4% increase in orders received to CHF 2 193 million and a 3.1% rise in revenue to CHF 1 904 million in the first quarter of 2012, despite negative foreign exchange impacts. In local currencies, orders received grew by 9.5% and revenue rose by 7.3%. The elevators and escalators business generated an operating profit (EBIT) of CHF 224 million, corresponding to an EBIT margin of 11.8% (first quarter of 2011: 11.5%).
Net profit totaled CHF 156 million in the reporting period. Adjusted for the one-off accounting gain of CHF 31 million in the first quarter of the previous year, net profit exceeded the result for that period by 2.6%.
Sustained good level of demand for Schindler products
Schindler products continue to experience a good level of demand globally. At CHF 2 193 million, orders received were 5.4% higher than in the first quarter of 2011 (+9.5% in local currencies). This pleasing development was driven by all regions – especially Asia/Pacific, followed by the North, Central, and South America region.
The order backlog at the end of the first quarter of 2012 was CHF 6 795 million, an increase of 5.5% compared to December 31, 2011 (+7.8% in local currencies).
Revenue and operating profit
Revenue grew by 3.1% to CHF 1 904 million (+7.3% in local currencies). Lower exchange rates had a negative impact in the amount of CHF 77 million or 4.2%. The pleasing increase in revenue was achieved primarily in the new installations business in growth markets.
The elevators and escalators business generated an operating profit (EBIT) of CHF 224 million (first quarter of 2011: CHF 212 million). Lower exchange rates reduced the operating profit (EBIT) by CHF -12 million (first quarter of 2011: CHF -25 million). In the first quarter of 2012, the EBIT margin rose to 11.8% from 11.5% in the same period of the previous year. Thanks to increased productivity and an enhanced cost structure, Schindler was able to further improve its EBIT margin despite the extremely challenging pricing environment.
The package of measures referred to as LEAP (Leading in Execution and Accelerating Performance) is being implemented as planned.
Net income from financing and investing activities
Net income from financing and investing totaled CHF 3 million (first quarter of 2011: CHF 12 million). This reflected negative foreign exchange impacts on the one hand, and a positive contribution from the participation in ALSO-Actebis Holding AG on the other.
Net profit and cash flow from operating activities
Reported net profit amounted to CHF 156 million, corresponding to a decline of 14.8%. Adjusted for the one-off accounting gain of CHF 31 million in the first quarter of the previous year, net profit exceeded the result for that period by 2.6%.
Cash flow from operating activities totaled CHF 331 million in the reporting period (first quarter of 2011: CHF 367 million). This slight decline mainly reflects the less favorable development of net working capital.
Outlook for 2012
Schindler’s operating performance in the first quarter was in line with expectations for the full year 2012. LEAP will deliver further operational improvements in the coming quarters. It is anticipated that the strong Swiss franc will continue to negatively impact Schindler’s financial results in the second quarter of 2012 at least.
Excluding any unforeseeable events, Schindler expects net profit for 2012 to be significantly higher than in the previous year.