August 16, 2016 / 6:36 AM / 2 years ago

UPDATE 2-Schindler sees slowest revenue growth in 4 years, hurt by weak China

* Shares down 4 pct - top Stoxx 600 faller

* Cuts FY revenue growth forecast to 3-5 pct in local currencies

* Q2 order growth slightly better than expected (Adds share price movement, analyst comments)

By Bartosz Dabrowski

Aug 16 (Reuters) - Swiss elevator manufacturer Schindler Holding AG expects the slowest revenue growth in four years as uncertainty in the Chinese construction market and the recession in Brazil continues to hurt.

The company cut the top-end of its revenue growth forecast and gave a lower-than-expected profit outlook, sending its shares down four percent in early trade on Tuesday, off the record highs the stock had set last week.

Housing inventories are on the rise in China, mainly in smaller cities, as investment growth in China’s real estate sector slowed in first half of 2016. This directly hurts global construction and building materials manufacturers.

Schindler said new installations in the Chinese market continued to decline, but it reported slightly better-than-expected order growth for the second quarter as it benefitted from better performance in Europe and the Americas region.

“Schindler continues to expect that the global elevator and escalator market will experience a slight decline in 2016, primarily due to weakening markets in China and Latin America,” the company said in a statement.

The company, which aims to boost unit sales in China, announced a new joint venture in June with Volkslift Elevator (China) Co in an attempt to successfully compete with rivals Kone and Otis, a unit of U.S.-based United Technologies.

For 2016, the company said it expects revenue growth of 3 to 5 percent in local currencies, down from its previous expectation of 3 to 7 percent growth. It expects net profit of 750-800 million Swiss francs.

At the top end of the new forecast, revenue growth would be the company’s slowest since 2012, when revenues rose 5 percent in local currencies.

This is in stark contrast with Finnish elevator maker Kone , which raised its profit forecast.

“The newly issued net profit guidance for 2016 is below our and market expectations, which is somewhat disappointing,” Kepler Cheuvreux analyst Martin Flueckiger said.

$1 = 0.9695 Swiss francs Reporting by Bartosz Dabrowski, Writing by Thyagaraju Adinarayan; Editing by Sherry Jacob-Phillips and Adrian Croft

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