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Schindler sees greater prices and provide chain bottlenecks to have an effect on This autumn

Oct 21 (Reuters) – Swiss elevator and escalator producer Schindler (SCHP.S) reported on Thursday a 0.4% drop in third-quarter internet revenue year-on-year, citing rising prices and disruptions in international provide chains, and stated the challenges would proceed into the fourth quarter.

Higher uncooked supplies costs, hovering price inflation and provide chain bottlenecks made Schindler cautious about its 2021 outcomes, although the corporate’s working consequence was again at pre-pandemic ranges.

“Different recovery in some key markets combined with supply chain issues causes delays in construction activities”, Chief Executive Thomas Oetterli stated on a press release on Thursday.

The firm stated it was monitoring newest developments in China property market extra carefully now, because the market which makes up 14% of Schindler gross sales is affected by efforts to handle the nation’s property market.

Beijing has stepped up measures to rein in China’s property market this 12 months, together with higher limits on builders’ debt ratios and restrictions on purchases. learn extra

Schindler’s internet revenue got here in at 234 million Swiss francs ($254.74 million), barely beneath 235 million francs a 12 months earlier, however beating the analysts’ estimates of 220 million francs.

The Swiss firm’s order consumption for the June-September interval returned to pre-pandemic ranges at 3.0 billion Swiss francs, above the two.92 billion francs registered in the identical interval of 2019.

The firm confirmed its full-year gross sales steering, anticipating a development between 4-7%.

($1 = 0.9186 Swiss francs)

Reporting by Aida Pelaez-Fernandez and Bartosz Dabrowski in Gdansk
Editing by Riham Alkousaa

The logo of Swiss elevator maker Schindler is seen during the annual news conference in Zurich, Switzerland February 14, 2020. REUTERS/Arnd Wiegmann/File Photo