The logo of Swiss elevator maker Schindler is seen during the annual news conference in Zurich, Switzerland February 14, 2020. REUTERS
April 23 (Reuters) – Swiss elevator maker Schindler is working on pricing actions and applying surcharges where possible to offset cost pressures, as energy and logistics costs have spiked due to the conflict in the Middle East.
Schindler CEO Paolo Compagna said on a call with analysts that the company was facing additional cost inflation in terms of logistics, fuel and energy costs and commodities.
The company’s finance chief, Carla De Geyseleer, said logistics and fuel costs would add approximately 15 million Swiss francs ($19 million) each to annual costs, while energy would add costs of less than one million Swiss francs.
For raw materials, De Geyseleer said there was no change to the estimated 15 to 20 million annual cost inflation the company had communicated in February.
Compagna said that, while the top line impact of the Middle East remained modest as sales in the region make up less than 2% of total sales, serving customers had become challenging, particularly for new installations.
He said the company had around 200 units produced on hold or in transit which they are looking to deliver via alternative routes.
($1 = 0.7844 Swiss francs)
Reporting by Bernadette Hogg; Editing by Matt Scuffham