With COVID-19 becoming a global pandemic, Schindler sees its previously announced revenue growth guidance for the full year 2020 of between 0% and 5% in local currencies at risk. Depending on the severity and duration of government measures worldwide in order to contain the COVID-19 spread, revenue growth is now expected to be contained between 0% and –10% in local currencies.
Furthermore, major foreign currencies have been further depreciating against the Swiss franc resulting in negative currency translation effects now estimated to be higher than earlier anticipated.
In addition, restructuring costs for the year are now expected to reach up to CHF 100 million, driven by the acceleration of efficiency programs in selected countries and by the factory closure in Spain. Approximately half of this restructuring cost amount will have to be recognized in the first quarter results of 2020.
The guidance for the 2020 net profit will be provided with the publication of half-year results. Considering COVID-19 impacts, foreign currency headwinds and higher restructuring costs, net profit for the year should be expected to come in below 2019, in the order of magnitude of 20%. On the basis of customer focus, operational measures and strategic initiatives, Schindler expects to continue growing faster than the market.