Despite the difficult environment, the Schindler Group recorded a significant increase in orders received and further improved its performance in 2010. Net profit grew by 8.9% to CHF 711 million compared to the previous year. In the elevators and escalators business, operating profit increased to CHF 980 million and the EBIT margin improved from 11.6% to 12.0%.
The comments relating to the Group key figures refer to the figures for the previous year, which have been adjusted retrospectively to reflect the disposal of the ALSO Group following the completion of the merger between ALSO and Actebis.
Operating revenue and operating profit reflect negative foreign exchange impacts
Consolidated operating revenue totaled CHF 8 187 million, a decrease of 1.1% compared to 2009. Lower exchange rates had a negative impact on operating revenue in the amount of CHF 291 million. In local currencies, operating revenue grew by 2.4%. Consolidated operating profit (EBIT) rose by 1.7% to CHF 950 million. The negative foreign exchange impact amounted to
CHF 35 million.
Strong demand for Schindler products
Orders received totaled CHF 8 778 million in the reporting year, an increase of 4.3% compared to the previous year (+7.7% in local currencies). All regions contributed to this pleasing trend – especially Asia / Pacific, followed by Latin America. In the new installations business, Schindler won a number of notable major orders in all market regions, including subway and rail projects in London, New York, Mexico City and China.
12.0% EBIT margin in the elevators and escalators business
Operating profit in the elevators and escalators business improved by 1.9% to CHF980million. As a result, the operating margin rose to 12.0% (previous year: 11.6%). Lower exchange rates had a negative impact in the amount of CHF 35 million. Restructuring costs before taxes of CHF 25 million were incurred in continued weak markets (2009: CHF45million).
Increased net profit at Schindler Holding Ltd.
Schindler Holding Ltd. closed the financial year 2010 with a net profit of CHF 670 million (previous year: CHF 491 million). The growth in profit is attributable to higher dividend payments from group companies. The payment of an ordinary dividend of CHF 2.00 (previous year: CHF 2.00) as well as an additional dividend of CHF 1.00 per registered share and per participation certificate will be proposed to the forthcoming General Meeting on March 15, 2011.
Schindler expects growth to continue in China, India, Latin America and the Gulf region. It will expand its research & development and management capabilities in China and India in order to strengthen its market position in these markets. The economic climate in Europe and North America is expected to recover further.
In weak markets Schindler expects to incur restructuring costs. The revaluation of the stake in ALSO will result in an accounting gain of CHF 40 million to CHF 50 million in the first quarter of 2011. The strong Swiss franc is likely to have a further negative impact on the Group's financial results.
Including the above-mentioned effects and excluding any unforeseeable events, Schindler expects its net profit for 2011 to be slightly lower than in the previous year.