Schneider Electric confident for 2017 despite strong euro

Posted November 2, 2017 by schneiderelectricind

France’s Schneider Electric (SCHN.PA) raised its financial targets for the second time this year on Thursday, as strong third quarter growth made up for negative currency effects.

France’s Schneider Electric (SCHN.PA) raised its financial targets for the second time this year on Thursday, as strong third quarter growth made up for negative currency effects.

Schneider Electric has been pursuing a strategy of accelerating growth in its higher margin low voltage, IT and industrial automation businesses, while trying to withdraw from lower margin projects in its infrastructure business.

The firm said its low voltage and industrial automation businesses posted organic growth of 4.3 percent and 6.9 percent respectively in the third quarter.

“These two businesses are growing in our four major regions, we are in a dynamic phase which is continuing and accelerating,” Chief Financial Officer Emmanuel Babeau told Reuters.

The company is now targeting 2017 organic revenue growth of around 4 percent outside infrastructure, compared to 1-3 percent initially, and a 50-70 basis points organic adjusted EBITA margin improvement, compared to 20-50 basis points initially.

Schneider Electric said third quarter revenue of 5.9 billion euros (£5.27 billion) was up 2.7 percent on an organic basis, but it was below the 6.02 billion euros forecast by a poll conducted for Reuters.

A 206 million euro ($243 million) foreign exchange impact, mainly due to the depreciation of the U.S. dollar and the Chinese Yuan against the euro, was partly to blame.

“It is clear that if the appreciation of the euro against almost all currencies continues, it will have an impact on 2018 and we will make sure we take appropriate steps to respond,” Babeau said.

About Schneider Electric

Schneider Electric is the global specialist in energy management and automation. With revenues of ~€25 billion in FY2016, our 144,000 employees serve customers in over 100 countries, helping them to manage their energy and process in ways that are safe, reliable, efficient and sustainable. From the simplest of switches to complex operational systems, our technology, software and services improve the way our customers manage and automate their operations. Our connected technologies reshape industries, transform cities and enrich lives. At Schneider Electric, we call this *Life Is On*. Schneider Electric is the worldwide expert in energy administration and automation. With incomes of ~€25 billion in FY2016, our 144,000 representatives serve clients in more than 100 nations, Schneider Electric helping them to deal with their energy and process in ways that are protected, dependable, productive and practical. From the least difficult of changes to complex operational frameworks, Schneider Electric innovation, programming and administrations enhance the way our clients oversee and computerize their operations. Schneider Electric associated advancements reshape businesses, change urban communities and advance lives. At Schneider Electric, we call this Life Is On. Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment.
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Issued By Schneider Electric
Country India
Categories Business
Last Updated November 2, 2017