Schindler Cuts Revenue Guidance Due to China Market

Schindler recently announced that it has cut its revenue guidance for the year, citing a slowdown in its key China market, which the Swiss elevator and escalator manufacturer expects to continue, according to a report by today. Schindler’s shares were down 6.5% after the company said it expects between a 2% decline and 2% growth in its 2022 revenue. It had previously guided for growth of 1% to 6%. CEO Silvio Napoli said on a conference call that China’s market could contract by 15% to 30% this year. China accounted for around 18% of Schindler’s sales last year. Schindler has been hit by falling demand for new equipment in China, as China’s real estate sector is in crisis, along with rising interest rates in the U.S. and Europe. Schindler’s second-quarter net profit came in at 152 million Swiss francs (US$157 million), down 37% from a year earlier but in line with a consensus figure cited by J.P. Morgan analysts. Schindler expects 2022 net profit to reach 620-660 million francs (US$647-688 million), below its 2021 result of 881 million francs (US$919 million).