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Thursday, September 28, 2023

Schindler’s Revenue Increased in 2022, Anticipates Growth in China in 2023

BusinessSchindler's Revenue Increased in 2022, Anticipates Growth in China in 2023

Swiss elevator manufacturer Schindler is optimistic about its business outlook for 2023 due to the predicted recovery of the Chinese economy. In an interview with Xinhua, the company’s CEO, Silvio Napoli, said he was “sure the Chinese economy will bounce back.” Referring to China’s GDP target of around 5 percent for 2023, Napoli said, “I have lived in China long enough to know that the Chinese economy will always surprise everyone.”

Founded in 1874, Schindler is a multinational company that manufactures elevators, escalators, and moving walkways. Napoli explained that orders take 12 to 18 months before they turn into construction sites, so it will take at least until the second half of 2023 to return to growth. He added that the company is “not here for the short term only” and is patient in waiting for growth.

In 2022, Schindler’s revenue increased by 1 percent to 11.3 billion Swiss francs ($12.24 billion), while order intake decreased by 1.7 percent to nearly 12 billion Swiss francs. The company expects single-digit revenue growth in local currencies in 2023, with the outlook being one of positive caution.

According to Napoli, the main headwinds this year will come from an ongoing slowdown of the global economy, combined with pressure on the real estate and construction sectors. However, the markets are recovering in some countries, but not others, meaning the company is “cautiously optimistic.”

China currently accounts for around 17 percent of Schindler’s sales. Napoli said that China is the company’s second-largest R&D center and continues to produce amazing products and components systems, both on the hardware and software side. He also expressed his excitement about returning to China for a business trip soon to better understand customers’ requirements.

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