Schindler delivers the largest profit in its history

Consolidated operating revenue grew by 1.4% to CHF 14 027 million in the reporting year. The increase in local currencies was 6.5%. Consolidated operating profit (EBIT) improved by 7.1% to CHF 889 million. Net profit totaled CHF 634 million, up 11% from the comparable prior-year profit of CHF 571 million. Consolidated orders received rose by 2.6% to CHF 14 479 million (an increase of 7.8% in local currencies). The consolidated order backlog declined by 5.3% to CHF 6 396 million but grew by 7.1% in local currencies. The Group’s total headcount dropped by a marginal 0.3%, to 45 063 employees.

Elevators and escalators business: EBIT margin exceeds 10% Orders received rose by 2.6% to CHF 9 259 million. The increase in local currencies was 9.1%. Growth was recorded in all market regions. The order backlog declined by 4.7% to CHF 6 291 million. In local currencies, this translated into an increase of 7.9%. Reported operating revenue rose by just 0.1% to CHF 8 761 million (an increase of 6.4% in local currencies). Operating profit (EBIT) grew by 11.6% to CHF 895 million (an increase of 18.6% in local currencies). The operating margin improved from 9.2% to 10.2%.

ALSO The two subsidiaries in Poland and Sweden, where operations were discontinued at the end of 2008, led to an overall reduction in the result of CHF 34.5 million, which meant that the Group reported a net loss of CHF 11.2 million for the year. However, continuing operations generated a profit of CHF 23 million.

Schindler Holding Ltd.: increased dividend Schindler Holding Ltd. closed the financial year 2008 with a net profit of CHF 428 million. The net profit of CHF 874 million in the previous year was attributable to one- off earnings from intra-group transactions of affiliated companies. An increased dividend of CHF 2.00 (previous year: CHF 1.60) per registered share and per bearer participation certificate will be proposed to the General Meeting on March 16, 2009.

Election of new members to the Board of Directors The Board of Directors will propose to the General Meeting that the following two candidates be newly elected to the Board for a term of three years: the member of the Council of States Rolf Schweiger, from Baar, who is a lawyer and notary in Zug, and Dr. oec. HSG Klaus W. Wellershoff from Zurich, who is Chief Economist at UBS and a member of the Group Managing Board of UBS.

Other important management change It is intended that Prof. Dr. Peter Athanas, the former CEO of Ernst & Young Switzerland, will be appointed as the successor to Alfred Spörri, who retired from the Executive Committee of the Board in 2008. Due to the statutory waiting period, Prof. Dr. Peter Athanas cannot be elected to the Board of Directors until 2010 (Ernst & Young Switzerland is the statutory auditor of Schindler Holding Ltd.). In the interim, he will support the Executive Committee of the Board as a non-exclusive advisor.

Outlook Economic growth will weaken further in 2009, impacting the level of orders received in the elevators and escalators business. Many countries are already in a recession, and it is extremely difficult to anticipate how the economy will develop. Excluding any unforeseeable events, Schindler expects to maintain net profit in 2009 at the current level, barring any negative impacts or costs related to the recession.

Editor's note: Image rights belong to the respective publisher.