October 23, 2018 / 5:29 AM / a year ago

Swiss elevator maker Schindler's growth slows, shares drop

FILE PHOTO: The company's logo is seen on a test tower at Swiss elevator maker Schindler's components factory in the town of Ebikon, Switzerland May 31, 2016. REUTERS/Arnd Wiegmann/File Photo

(Reuters) - Shares in Schindler (SCHP.S) hit a six-month low on Tuesday after the Swiss elevator and escalator maker said its net profit growth had slowed to 0.4 percent in the third quarter as a result of adverse foreign exchange moves.

Schindler’s shares were down 7 percent at 207 Swiss francs by 0807 GMT after it reported net profit of 230 million Swiss francs, below the average of 240 million francs expected by analysts in a Reuters poll.

“It seems more likely that Schindler might report a full year net profit at the low end of the guidance,” Baader Helvea analyst Christian Obst said in a research note, adding that while it remains on a growth path, momentum is declining.

Schindler reaffirmed its full-year outlook of revenue growth of 5 percent to 7 percent and net profit in the 960 million to 1,010 million francs range.

Schindler said its sales rose by 3.6 percent to 2.68 billion Swiss francs (2.1 billion pounds), also missing the poll average of 2.72 billion Swiss francs. It said foreign exchange effects had impacted operating profit negatively by 10 million francs.

“Overall, we view the results as slightly negative,” Zuercher Kantonalbank said, adding that earnings due from rivals Otis and Finland’s Kone (KNEBV.HE) would put Schindler’s performance in context.

Kone’s net profit for the third quarter, which is due to be reported on Thursday, is seen down 7.1 percent, according to a Reuters poll.

Reporting by Bartosz Dabrowski; Editing by Vyas Mohan and Alexander Smith

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