Elevators Schindler wants to eliminate duplication, especially in China
For the head of lift manufacturer Schindler, duplication within the company is "no longer acceptable". The greatest leverage lies in China, answered Silvio Napoli when asked by CH Media whether there would be job cuts in Switzerland.
The lift and escalator manufacturer is looking at all locations worldwide, said Napoli in an interview with "Schweiz am Wochenende" on Saturday. The duplications stem from many acquisitions.
The focus is now on China. Despite the real estate crisis, a third of global turnover in the elevator industry is still generated in China, said Napoli. Schindler "only" has just under 15 percent of its business in China. The company is therefore affected, but not dramatically.
Logistics made more difficult
The geopolitical tensions and the resulting restrictions would make logistics much more difficult. In addition to embargoes against countries, there are also embargoes against components. The company is preparing for this. "Even if it is painful," said Napoli.
The crisis team, which was originally convened due to internal problems, is still needed. This is because the external situation has now deteriorated, said the company boss. Napoli is both CEO and Chairman of the Board of Directors. As soon as the crisis has been overcome and the crisis team is no longer needed, the company will return to the old model with dual leadership.
More profit in the first quarter
In the first quarter of 2024, Schindler felt the effects of the strong Swiss franc and the ailing construction industry, among other things. However, order intake remained high and new products were initially well received. On balance, Schindler achieved a net profit of 232 million Swiss francs. This corresponds to an increase of 9.4 percent compared to the same period of the previous year.
For 2024, the Group expects revenue growth in local currencies in the low single-digit range and an EBIT margin of 11 percent. The medium-term target is 13%, Napoli said in an interview.
