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Schindler warns of high franc after profit rise

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Schindler warns of high franc after profit rise
Photo: Schindler
11:58 CET+01:00
Schindler Management, the Swiss elevator and escalator company, almost doubled its profit in 2014 from the previous year on the back of higher revenues but it warned that the strong franc would cut into margins for this year.

The company, based in Ebikon in the canton of Lucerne, said on Friday that net profit rose to 902 million francs last year, a lift of 95 percent from 2013.

Revenue rose five percent to 9.25 billion francs, Schindler said.

The company received orders last year amounting to more than 9.9 billion francs, with growth strongest in the Asia Pacific region, led by China, India and southeast Asia.

Schindler also benefited from the uptick in the US market, while “small growth” was recorded in Europe, despited declines in some markets.

The company said it expected to see the elevator and escalator market to continue to grow “above GDP rates” during 2015.

It said China will remain the firm’s dominant market, although the growth rate there is expected to slow down slightly.

While the company forecast revenue growth of seven to nine percent this year in local currencies, it warned that the impact of the strong Swiss franc would negatively impact results by around 10 percent.

Schindler’s board is recommending an additional one franc per share dividend on top of the 2.20-franc ordinary dividend disbursed last year.

The company, which employs more than 53,000 people in more than 100 countries, said it increased its workforce last year by 6,000 people.

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