Schindler AG: Very good level of orders received

Orders received and order backlog
There is a good level of demand for Schindler products globally. Despite the very different economic developments in individual regions, it was possible to maintain a high level of growth in orders received. The Asia/Pacific region generated the strongest growth, followed by the North, Central, and South America region. In Europe, a slight decline was reported. The order for the major project ‘Warsaw Spire’ is a testimony to the high level of acceptance of Schindler products. Schindler will install 14 Schindler 7000 high-rise elevators and 27 Schindler 5500 elevators, as well as 4 Schindler 9300 AE escalators, in the highest commercial building in Poland. Of the total of 41 elevators, 38 will be equipped with PORT technology – a highly customized, interactive system that optimizes the flow of traffic within buildings and generates energy savings.

Orders received exceeded the first quarter of 2012 by 7.5% and reached CHF 2357 million (+7.5% in local currencies). The order backlog at the end of the first quarter of 2013 was CHF 7 843 million, an increase of 10.7% compared to December 31, 2012 (+7.9% in local currencies).

Revenue and operating profit
Revenue grew by 4.0% to CHF 1 980 million (+4.2% in local currencies). This increase was achieved primarily in the new installations business in growth markets. Several new installation and modernization projects were delayed or postponed in various European markets. Overall, revenue growth therefore leveled off in this region. In other regions, growth was in line with expectations.

From the start of the new financial year, operating profit (EBIT) is only being shown at Group level in the reporting of selected key figures. However, the operating profit of the elevators and escalators business will continue to be shown in the segment information in the Interim Report and Annual Report.

At Group level, operating profit of CHF 217 million was generated in the first quarter of 2013 (first quarter of 2012: CHF 214 million). Due to the relatively modest growth in revenue as well as continued pricing and cost pressure, only a slight rise in operating profit of 1.4% was reported (+2.8% in local currencies). The EBIT margin decreased slightly to 11.0% (first quarter of 2012: 11.2%), party also reflecting the strong growth in the new installations business in the Asia/Pacific region.

Net income from financing and investing activities
Net income from financing and investing activities totaled CHF 8 million (first quarter of 2012: CHF 3 million). This positive development was mainly attributable to income from associates.

Net profit and cash flow from operating activities
Net profit totaled CHF 166 million (first quarter of 2012: CHF 156 million), corresponding to an increase of 6.4%. Cash flow from operating activities amounted to CHF 305 million in the period under review (first quarter of 2012: CHF 331 million).

Outlook for 2013
Although the first quarter of 2013 was slightly below our expectations, Schindler continues to expect that-excluding any unforeseeable events – revenue growth will be around 6% in local currencies and net profit will total around CHF 740 million to CHF 790 million for the full year 2013.

Media Contact:
Dr. Barbara Schmidhauser Chief Communications Officer Tel. +41 41 445 30 60 barbara.schmidhauser@ch.schindler.com

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