Back to:

Automation Portals

Schneider Electric / Square D News

Schneider Electric's third-quarter 2006 sales up 15.3%

Go to company's web site

Continued sustained organic growth of 9.9%

Favorable dynamics in Western Europe

Firm demand in North America

Excellent performance in emerging countries

Rueil Malmaison, October 24, 2006 – Sales for the third quarter of 2006 totaled €3,480 million, up a strong 15.3% on a current structure and exchange rate basis from the year-earlier period.

Acquisitions (primarily Juno Lighting, BEI Technologies, Merten and Clipsal Asia) contributed a significant €216 million, or 7.1% of growth for the period. The negative currency effect reduced sales by €47 million (or 1.7%), reflecting the euro’s relative weakness in the second half of 2005.

On a constant structure and exchange rate basis, sales growth, at 9.9% in third-quarter 2006, is remarkable taking into account a more demanding basis of comparison. In the year-earlier period, business began to pick up sharply as of September, notably in North America.

Schneider Electric benefited also from a higher-than-expected demand in Western Europe and continued to achieve excellent performance in emerging countries. With an average sales increase of 17%, these countries generated more than 50% of the Group’s organic growth during the period.

Schneider Electric aggregate sales for the first nine months ended September 30, 2006 rose 19.6% to €10,066 million, representing a 10.8% increase on a constant structure and exchange rate basis, from the year-earlier period.

In Europe, sales rose 8.7% during the quarter, confirming the rate of growth seen in the first half. Thanks to continuous enhancements in its product portfolio and customer service capabilities, Schneider Electric is benefiting fully from powerful momentum in its end markets.

The clear upturn in capital spending in the industry and non-residential building markets continued across virtually the entire region, with growth of more than 10% in Northern Europe, Spain and Italy. Sales increased by more than 20% in Eastern Europe, lifted by the Group’s action plans in a particularly buoyant environment.

In North America, sales growth of 5.6% was impacted by a higher basis of comparison than in the previous quarters. Nevertheless, the business trend remained solid, with strong demand in all non-residential construction segments amply offsetting the residential market’s slowdown. Services and energy management continued to expand sharply.

Sales in the Asia-Pacific region continued to increase at fast pace, up 15.0%. After making up for low invoicing volumes in the second quarter, operations in China were able to report growth in excess of 15% for the first nine months. Schneider Electric pursued its intensive development in India, where sales expanded by nearly 35% in the third quarter. Sales in the other Asian countries increased strongly against a backdrop of very favorable regional environment.

In the Rest of the World, sales gained 19.6% compared with nearly 20% in third-quarter 2005. This remarkable performance reflects ongoing expansion in the oil and mining industries in the

Middle East, South America and Africa, coupled with Schneider Electric’s high-quality positions in those regions.

“Schneider Electric growth model based on geographic expansion, technological innovation and new businesses’ integration allows us to offer more comprehensive solutions to our customers all around the world and to fully benefit from the long-term growth drivers of our industry, such as growing needs for electrification and energy savings” noted Jean-Pascal Tricoire, Chairman of the Management Board and CEO. “Assuming current economic conditions, Schneider Electric anticipates organic sales to grow around 10% for full-year 2006 and confirms its target of operating income to increase by around 25%, given the trend in the business mix and ongoing investments in our growth model.”

Fourth-quarter sales data will be released on January 19, 2007 and 2006 full-year financial results will be presented on February 21, 2007.

Schneider Electric is the world’s power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers’ requirements in the residential, building, industry and energy and infrastructure markets. With 92,000, employees and operations in 190 countries, Schneider Electric generated sales of €11.7 billion in 2005 through 13,000 distributor outlets.

Go to company's web site

Automation.com Real-time Information for the Automation Professional May. 25, 2012

Cart

Automation.com

NOTICE: Your use of Automation.com constitutes your agreement to the Legal Notices, Policies, Terms, and Conditions governing its use. You should review these terms before proceeding.Copyright © 2000-2010 Automation.com - automation.com, automationtechies.com, automationtechies, automationtechie, and Member-Match are all trade and service marks of Automation Resources, Inc. All Rights Reserved.