Schindler generated a net profit of CHF 152 million in the first quarter of 2010. In its core business, orders received grew by 7.5% (+8.1% in local currencies) to CHF 2,140 million and the EBIT margin was 11.8%.
Orders received rose by 7.5% to CHF 2,140 million compared to the first quarter of 2009 (an increase of 8.1% in local currencies), reflecting contributions from all market regions.
Operating revenue declined by 0.3% to CHF 1,947 million (+0.3% in local currencies). Operating profit (EBIT) totaled CHF 230 million, corresponding to an EBIT margin of 11.8%. Compared to the first quarter of 2009, adjusted for a one-time book gain of CHF 39 million, operating profit improved by 7.0% and the EBIT margin rose from 11.0% to 11.8%. This successful performance was mainly attributable to the efficiency measures that were initiated at an early stage, as well as systematic cost discipline.
ALSO grew its operating revenue by 2.4% to CHF 1,069 million and achieved a significantly higher net profit of CHF 7 million (first quarter of 2009: CHF 5 million). This improvement in performance was driven by targeted measures to strengthen profitability as well as more buoyant demand among corporate users.
Operating revenue rose by 0.7% to CHF 3,016 million (+1.8% in local currencies). Net profit totaled CHF 152 million (first quarter of 2009: CHF 156 million). Adjusted for a one-time bookgain of CHF 31 million recorded in the first quarter of 2009, net profit increased by 22%. Net income from financing and investing was CHF -23 million (first quarter of 2009: CHF41million). The negative impacts from operational currency hedges were reduced significantly compared to the first quarter of 2009. The cash flow from operating activities generated during the reporting period was maintained at a high level and amounted to CHF429million.
As of March 31, 2010, cash on hand totaled around CHF 2.1 billion.
Outlook for 2010
Elevators & escalators
At present, it is difficult to assess how developments in the construction industry, strong currency fluctuations and the rising costs of raw materials will affect the business. Thanks to its large order backlog, intensive market activities and competitive product range, Schindler is well positioned to respond rapidly to changes in individual markets.
ALSO currently expects Group net sales to remain in line with the previous year and net profit to increase significantly.
Group Schindler continues to expect that excluding any unforeseeable events, net profit after restructuring costs will be slightly lower in 2010.