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Investing.com -- Schindler (SIX:SCHP) on Wednesday has reported steady growth for 2024, despite ongoing challenges in the global market, sending shares up by over 2%.
The Swiss elevator and escalator manufacturer recorded an order intake of CHF 11.3 billion and revenue of CHF 11.2 billion.
While both figures represented a slight decline in absolute terms compared to the previous year, they showed a modest increase of 2.2% and 0.8%, respectively, when adjusted for local currencies.
The company’s operating profit (EBIT) rose to CHF 1.27 billion, with an EBIT margin of 11.3%, up from 10.3% in the previous year.
The adjusted EBIT margin stood at 12%, reflecting improvements driven by operational efficiencies, pricing adjustments, and product mix changes.
Net profit increased to CHF 1 billion, with a net profit margin of 9%. Cash flow from operating activities saw a significant rise of 25% to CHF 1.6 billion.
Schindler’s CEO, Paolo Compagna, emphasized that 2024 marked the third consecutive year of operational recovery. “Having laid out these solid foundations, we will now leverage our culture of innovation, enhance customer centricity, strengthen our competitiveness and, consequently, drive profitable growth,” he said.
The company faced challenges in new installations, particularly in China, where the construction market continued to decline.
However, Schindler saw growth in modernization and service segments, which helped offset losses.
The company also made progress in launching a new modular elevator platform in key European markets, with expansion in Asia-Pacific underway.
Additionally, Schindler introduced a new mid-rise product for the U.S. market, targeting the commercial and high-end residential sectors.
Foreign exchange fluctuations posed a headwind, negatively impacting order intake and revenue by CHF 365 million and CHF 348 million, respectively. The order backlog stood at CHF 8.7 billion, reflecting a 2.2% decline in local currencies.
On the corporate front, Schindler Holding closed the year with a net profit of CHF 752 million. The Board of Directors proposed a dividend of CHF 6.00 per registered share and participation certificate, increasing the previous year’s payout by CHF 1.00 and bringing the payout ratio to 68%.
The company also announced leadership changes. Josef Ming has been nominated to succeed Silvio Napoli as Chairman of the Board, while longtime board member Luc Bonnard will step down.
Schindler expects low single-digit revenue growth in local currencies for 2025 and projects an EBIT margin of approximately 12%. The company reaffirmed its mid-term objective of achieving an EBIT margin of 13%.