By Ozan Ergenay and Cian Muenster
(Reuters) -Swiss lift maker Schindler reported a nearly 6% drop in its second-quarter sales on Friday due to negative currency exchange effects related to the strong Swiss franc, driven by the trade war.
U.S. President Donald Trump’s tariff announcements have driven up the Swiss currency, seen as a safe haven amid global economic turmoil. The franc’s value against the U.S. dollar has grown around 12% since the start of the year.
As Schindler makes a vast majority of its sales in foreign currencies, this means their value suffers a negative impact when converted into francs.
The company, which also makes escalators and moving walkways, posted revenue of 2.75 billion francs ($3.43 billion) for the quarter, down 5.7% from a year earlier but above analysts’ forecast of 2.65 billion, according to LSEG data.
Currency conversions had a negative impact of 186 million francs on sales in the first half of the year, it said in a statement.
“In a turbulent market environment with significant (foreign exchange) distortions, Schindler demonstrates strong resilience,” Vontobel analyst Alexander Koller said in a research note.
Schindler shares, which have gained 18.7% since the start of the year, were marginally up in early trading.
“Our efforts in modernization are paying off, driving solid organic growth at a time of macro-economic uncertainty and severe currency headwinds,” CEO Paolo Compagna said.
Schindler has focused on digitalization in recent years, a move that it expects to drive growth through enhanced customer loyalty as services become more efficient.
Its modernization business grew strongly in the second quarter while the service unit continued to grow at a steady pace. Orders for new installations were stable overall despite market weakness in China, it said.
Quarterly order intake was 2.93 billion francs, compared to 2.99 billion a year earlier.
The company confirmed its full-year guidance for 2025, including low single-digit percent revenue growth in local currencies and an operating margin of around 12%.
($1 = 0.8027 Swiss francs)
(Reporting by Ozan Ergenay and Cian Munster in Gdansk, editing by Milla Nissi-Prussak)
