Schindler raises 2020 guidance on China boost

Credit: REUTERS/ARND WIEGMANN

Swiss elevator and escalator manufacturer Schindler raised its full-year revenue and net profit guidance on Friday, citing increased activities in key markets, including China.

Adds context and peer performance

Oct 23 (Reuters) - Swiss elevator and escalator manufacturer Schindler SCHP.S raised its full-year revenue and net profit guidance on Friday, citing increased activities in key markets, including China.

The company raised the lower range of its 2020 revenue outlook and now sees a 0-3% decline in sales, compared to the previous outlook of a 0-6% fall. It sees full-year net profit of 720-760 million Swiss francs ($793-$837 million), compared to the previous forecast of 680-720 million francs.

The Chinese market, which accounts for 14% of Schindler's sales, locked down after the new coronavirus emerged there late last year, but rebounded swiftly, and in September HSBC said it expected the country's GDP in 2020 to grow by 2.4% year-on-year.

On Thursday, Finnish rival Kone reported an expected increase in third-quarter profit as demand for elevators and escalators picked up in China, but said rising competition from other engineering groups had put pressure on pricing.

Schindler's third-quarter net profit fell 3.7% from the previous year to 235 million francs.

($1 = 0.9077 Swiss francs)

(Reporting by Bartosz Dabrowski in Gdansk; Editing by Muralikumar Anantharaman)

((bartosz.dabrowski@thomsonreuters.com ; +48 587720995;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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