By Bernadette Hogg
(Reuters) -Swiss lift and escalator maker Schindler will pass on some tariff costs to customers while also working to improve efficiency in its supply chain, CEO Paolo Compagna told Reuters on Wednesday.
The company estimates an annualised gross cost impact of 33 million Swiss francs ($40.01 million) from tariffs, with a gross cost impact of 23 million Swiss francs in 2025.
The company said in an investor presentation that it had lowered its market outlook for new installations in the Americas from its prior assessment, which Compagna said reflected a weaker start to the year in North America.
Schindler now expects the market to contract by up to 5% this year after previously estimating 2025 growth of up to 5%.
The Americas account for 29% of Schindler’s group revenue, and more than 95% of the raw materials and components that the company uses in products sold in the U.S. are sourced locally, analysts at Jefferies said.
“The China tariffs do play a big role to our suppliers,” Compagna said on a call with analysts, referencing suppliers which import aluminium and steel.
Compagna told Reuters that steel and aluminium price hikes were mostly mitigated for 2025 due to the company’s existing contracts with suppliers, but expressed less certainty for after 2025.
“So far, we don’t have signals of a visible slowdown,” Compagna said when asked about whether the company had seen any change in customer buying patterns in the U.S. since the tariffs were announced.
Lucerne-based Schindler reported a first-quarter order intake of 2.95 billion Swiss francs on Wednesday, a 6% rise from a year earlier in local currencies. The company reported organic growth across all regions except China, and reiterated its 2025 earnings guidance.
($1 = 0.8248 Swiss francs)
(Reporting by Bernadette Hogg; Editing by Christopher Cushing, Rachna Uppal, Kate Mayberry and Freya Whitworth)
