On Thursday, Swiss elevator and escalator manufacturer Schindler (SCHP.S) announced a 47% increase in first-quarter profit, driven by robust residential demand despite a tough economy.
For the quarter that ended March 31, net profit was 212 million Swiss francs ($236 million), exceeding experts’ projections of 166.5 million.
Schindler said maintenance and repair growth and supply chain recovery supported the firm despite cost inflation and declining worldwide trends for new installations.
In the first quarter, new installations in China, which account for 17% of group sales, began to slow.
China’s COVID-19 lockdowns, which had disrupted elevator and escalator supplies, ended at the start of the year, easing global supply chain problems.
In a note, J.P. Morgan analyst Andrew Wilson said the earnings report showed operational initiatives benefit margins.
Schindler reported a 49 million franc operational improvement in the first quarter from restructuring, digitization, and a one-time real estate gain.
Sales were 2.80 billion francs, exceeding a corporate average of 2.62 billion.
Julius Baer pre-market signals showed Schindler shares up 2.6% at 0620 GMT.
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