Declining turnover, but growing profit for Schindler (cross-border guide)

Context

In a nutshell

• Turnover decreased by 3% to CHF 5.3 billion.
• Earnings up 2% to CHF 542 million.
• New orders down 2% to 5.8 billion francs.

Key facts

• What: Schindler
• When: first six months of the year
• Where: Switzerland
• Who: Schindler
• Amount: CHF 706 million

The Lucerne-based giant in the field of elevators and escalators saw its EBIT operating result increase by 5% to CHF 706 million, while net profit rose by 2% to CHF 542 million, according to the indications provided today.

The Schindler group recorded a turnover of CHF 5.3 billion in the first half of 2023, down 3% compared to the same period of the previous year. Despite this, the company achieved a net profit of CHF 542 million, an increase of 2% compared to the same period of the previous year.

The new order fell 2% to CHF 5.8 billion, which could be a sign of a market where companies are struggling to compete.

The Lucerne-based giant also announced that it had reached a new sales record for elevators and escalators, with over 100,000 units sold in the first half of 2023.

Schindler's net profit growth was made possible by reduced costs and increased productivity. The company has also invested heavily in research and development, with a budget of CHF 100 million for the first half of 2023.

According to the

Operational details

Declining turnover, but growing profit for Schindler

Schindler, a world leader in the production of elevators and vertical transport solutions, continued to implement its disciplined and profitable growth strategy, achieving a solid operating profit. These results underscore the validity of its strategy and put us in an optimal position to continue creating long-term value for our customers, employees and shareholders.

According to recently published financial data, Schindler's turnover fell slightly by 2.5% compared to the same period last year, from CHF 4.2 billion to CHF 4.1 billion. However, the company continued to record a growing operating profit, with an increase of 10% compared to the same period of the previous year, going from CHF 350 million to CHF 385 million.

This operating profit growth was made possible by the company's continued focus on efficiency and cost reduction. Schindler has implemented a number of measures to reduce costs, including reducing staff and reorganizing operations. In addition, the company continued to invest in research and development, with an increase of 15% compared to the same period last year.

The growth of Schindler's operating profit was also possible thanks to the demand for vertical transport solutions growing in the Swiss market.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Practical Implications

Schindler's growth strategy led to an increase in profits, despite a decline in turnover. New installations outside of China have been an important factor for growth.

Step-by-step procedure

To better understand Schindler's situation, it is necessary to verify the company's financial results and analyze the growth strategy. Here are some steps to follow:

• Checking Schindler's financial results: this involves analysing the company's financial statements and accounts to see if there have been any significant changes in turnover and profits.
• Analyse Schindler's growth strategy: It is important to understand how the company has achieved its growth objectives and whether there have been any significant changes in strategy.

Deadlines

Schindler's growth strategy has been in place for several years, so it is important to analyze historical data to understand how the company has achieved its growth goals. Some examples of new installations outside of China include:

• A new elevator factory in Basel, opened in 2018 with an investment of 20 million Swiss francs.
• A new Schindler headquarters in Zurich, opened in 2020 with an investment of 15 million Swiss francs.

Operational Checklists

To better understand Schindler's situation, it is necessary to check the following aspects:

• Turnover: it is necessary to check if there are

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Source: tio.ch