Schindler Names Napoli Chief to Replace Tinggren

Schindler Holding AG (SCHP) named Silvio Napoli as Chief Executive Officer of the Swiss elevator maker to replace Juergen Tinggren, who will leave the post after 2 years to join the board of directors.

Napoli, who has been on the company’s executive committee with responsibility for the Asian region since 2008, will start in January, the Ebikon-based company with a market valuation of 15.7 billion francs ($17.2 billion) said in an e-mailed statement today. Napoli joined Schindler in 1994 and held various positions including vice president South Asia, CEO of Schindler’s Indian operations and head of corporate planning.

The new CEO’s knowledge of Schindler’s Asian operations may help to boost the elevator maker’s profitability and finetune its expansion strategy after an Aug. 13 profit forecast cut because of costly investments in China and India. The shares dropped as much as 7.1 percent that day, the most in two years.

Schindler said at the time that it sees profit of around 550 million francs to 600 million francs this year, including a 155 million-franc charge on its investment in Hyundai Elevator Co. (017800) That compared with an earlier forecast of as much as 790 million francs. Profit fell 78 percent to 40 million euros in the second quarter. In contrast, Helsinki-based rival Kone Oyj (KNEBV) said second-quarter sales grew 14 percent on strong China demand.

Profitability in the second quarter was below market estimates because of the cost of new products and factories in new markets, as well as pricing pressure, Kepler Cheuvreux analyst Oliver Girakhou said at the time.

The Swiss company will start production at the world’s largest escalator plant in Jiading, China, at the end of this year, as well as expanding production in India, Slovakia and the U.S.

Schindler has risen 3.6 percent in Zurich trading this year, trailing the Swiss Market Index, which is up 18 percent.

Tinggren, who became CEO in Oct. 2011, will join the board of directors, pending a shareholder vote in March next year.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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