July 18 (Reuters) - Swiss lift and escalator maker Schindler (SCHP.S) , opens new tab reported a 5.7% drop in its second-quarter sales on Friday due to negative currency exchange effects related to the strong Swiss franc.

It posted quarterly revenue of 2.75 billion Swiss francs ($3.43 billion), down from 2.92 billion francs a year earlier, but beat analysts' average forecast of 2.65 billion francs, according to LSEG data.

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Currency exchange headwinds had a negative impact of 186 million francs on its sales in the first half of the year, the company said in a statement.

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.

"Notably, 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.

The group's 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.

Schindler's quarterly order intake amounted to 2.93 billion Swiss francs, compared to 2.99 billion francs a year earlier.

The company confirmed its full-year guidance for 2025, expecting revenue to grow in a low single-digit percentage in local currencies, with an operating profit margin of around 12%.

($1 = 0.8027 Swiss francs)

https://www.reuters.com/markets/europe/schindlers-revenue-falls-q2-beats-market-forecasts-2025-07-18/