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thyssenkrupp to Continue Profitable Growth in Elevator Business

Steel News - Published on Fri, 13 Dec 2019

Image Source: thyssenkrupp-elevator.com
At a Capital Markets Day in London today, the elevator management team of , thyssenkrupp Elevator led by CEO Mr Peter Walker presented their strategy and targets for the coming years to more than 100 investor representatives and analysts. The targets foresee low to mid single digit exchange rate adjusted growth for the fiscal years 2019/20 and 2020/21. Improving operating performance is at the core of the new strategy, with a targeted increase in the adjusted EBIT margin of 11.5 to 13.0 percent by fiscal year 2020/21. thyssenkrupp Elevator aims to achieve these targets by further standardizing products and optimizing the production network. In addition, thyssenkrupp Elevator plans to further expand and improve its service business while reducing complexity by streamlining the administration globally.

thyssenkrupp Elevator AG CEO Mr Peter Walker said “The global market for elevators and escalators is highly attractive. We expect that the market is growing long-term and has proven resilient against cyclical fluctuations. As one of the world’s leading suppliers with a strong focus on the service business, we believe thyssenkrupp Elevator is in an excellent position to benefit sustainably from this expanding market. We have defined specific levers how to drive the profitability of our businesses. Now it’s on us executing on this plan.”

The leadership trio’s main goal is to increase efficiency and thus improve margins. A number of different interlinked measures are designed to help achieve this:

Standardizing the product offering: By further harmonizing the product portfolio thyssenkrupp Elevator aims to reduce complexity and increase competitiveness. These measures are designed to enable thyssenkrupp Elevator to drive sales.

Optimizing manufacturing: thyssenkrupp Elevator continues to work on the transformation of the production network. While factories in Asia and South America are already operating on track with high flexibility and focused production setup, facilities in North America and Europe need further optimization.

Expanding and further developing the service business: The focus is on expanding what is thyssenkrupp Elevator’s most vital product – the service business – as well as improving processes and optimizing customer service. The IoT application MAX provides a digital solution that helps to boost efficiency and offer customers new, digital services.

Streamlining administration: Over the next three years, we target total gross savings of approximately €80 million globally by implementing shared service centers, optimizing IT and increasing organizational efficiency.

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Posted By : Rabi Wangkhem on Fri, 13 Dec 2019
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