Rueil-Malmaison, January 13, 2005 – In launching its new² company program, Schneider Electric ambition is to reveal its key potentials and position itself as a leading provider of innovative solutions. Schneider Electric has set ambitious financial objectives for 2005-2008:
- Achieve organic sales growth of more than 5% assuming an annual growth of its underlying market by 3%.
- Sustain an operating margin between 12.5% and 14.5% over the business cycle (based on the French GAAP accounts).
- Increase return on capital employed by 2 to 4 points from 2004 level.
- Pay out a dividend equivalent to 50% of net earnings before goodwill starting in 2005 (versus 39% in 2004) and re-leverage the balance sheet within a period of 2 years, to offer shareholders an attractive return on investment.
Schneider Electric has identified three areas that offer significant scope for improvement: Growth, Efficiency and People.
The Company will drive Growth by bolstering its marketing expertise, speeding up the pace of new product launches and developing less cyclical, high-growth businesses such as Automation for the Building and Industry markets, Secured Power, Services and Ultra Terminal.
It will enhance Efficiency by innovating in customer service, deploying a worldwide coherent information system and re-balance costs and revenues, in terms of regions and currencies.
Schneider Electric will focus more strongly on the safety and progress of its People by improving occupational health and safety, developing talent and unleashing an entrepreneurial spirit.
The program’s action plans will allow Schneider Electric to give priority to Customer satisfaction, foster Employee development, take on additional Community responsibilities and be its Shareholders’ preferred investment.
Schneider Electric will announce its fourth quarter 2004 sales on January 20, 2005 and present its full-year 2004 financial results on February 17, 2005.
Schneider Electric: Giving the best of the New Electric World, to everyone, everywhere, at any time
About Schneider Electric
Schneider Electric is the world’s power and control specialist.
Through its world-class brands, MerlinGerin, Square D and Telemecanique, Schneider Electric manufactures and markets a comprehensive range of products and services for the residential, buildings, industry, and energy and infrastructuremarkets.
Schneider Electric has 85,000 employees worldwide, operations in 130 countries and recorded sales of €8.8 billion in 2003 through 13,000 sales outlets
