Schindler: China, Materials Issues, Costs Mean Challenging 2022

In discussing its 3rd Quarter 2021 financial results, Schindler said 2022, particularly the first half, will be challenging due to a slowdown in China, supply chain issues, materials shortages and rising costs, Reuters was among outlets to report on October 21. The Swiss manufacturer said it was unaffected by the debt situation of Chinese developer Evergrande, but that real estate slowdown in China will affect its business through at least the first half of the year. Schindler is optimistic that government actions will prompt the Chinese market, which accounts for at least two-thirds of elevator installations globally, to rebound in the second half of 2022. Because of stronger materials shortages, Europe was the main drag on Schindler revenue from January-September 2021, CEO Thomas Oetterli said, coming in at the 2019 pre-pandemic level at CHF8.28 billion (US$9 billion). Third quarter 2021 net profit was CHF234 million (US$255.6 million), slightly below a year earlier but beating analysts’ expectations.