Schindler to cut up to 2,000 jobs


Schindler to cut up to 2,000 jobs

Friday, 24.07.2020

The CEO of the group, Thomas Oetterli. (Keystone)

Elevator and escalator maker Schindler posted lower half-year results but beat analyst estimates. The Hergiswil group plans to cut 2,000 jobs worldwide in the next two years as part of a savings program launched because of the negative impact of Covid-19 on business.

The restructuring measures will cost up to 150 million francs and the elimination of the 2,000 jobs also concerned the plant, a statement said on Friday.

During the period under review, sales fell by 8.7% to 4.96 billion francs and by 3.1% at constant exchange rates (cc). New orders fell 12.1% to 5.4 billion and 6.6% cc.

Profitability has also suffered from the pandemic. Operating profit (EBIT) slipped 29.4% to 421 million and the related margin was 8.5% against 11% previously.

Net profit for its part sagged 28.2% to 313 million.

The results remain above analysts’ expectations.

For the full year, Schindler expects sales to decline between 0% and 6% in local currencies and net profit is expected to be between 680 and 720 million taking into account restructuring costs of 130 million over the period. . (AWP)

Read also: The coronavirus pushes Schindler and his competitors to innovate even faster

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