Very strong organic growth in the third quarter: +10.3%
Sustained business in North America
Acceleration of demand in Western Europe
Continued positive momentum in emerging countries
Full year targets revised upwards Rueil Malmaison, October 20, 2005 – Sales for the third quarter of 2005 totaled €3,017 million, up a strong 14.3% on a current structure and exchange rate basis from the year-earlier period.On a constant structure and exchange rate basis, sales growth was particularly high at 10.3% in the third quarter 2005 compared to the same period last year. Acquisitions (PMI, ABS EMEA and Juno Lighting) added €78 million (+3.0%), while the currency effect had a slightly positive impact, adding €28 million (+1.0%).Schneider Electric aggregate sales for the first nine months ended September 30, 2005 rose 10.5% to €8,416 million, representing a 7.8% increase on a constant structure and exchange rate basis, from the year earlier period.Sales growth in July and August was in line with the first half performance and then picked up in September, in a context of rising demand in North America and a number of European countries.Schneider Electric continued to turn in an excellent performance in the emerging countries in a buoyant environment, with sales for the quarter up 14% overall. These countries now account for nearly 30% of total sales.Sustained growth in all regions In Europe, sales rose 7.9% during the third quarter 2005, thanks to a gradual upswing in demand in most countries, although the situation remains mixed. The period also benefited from a favorable basis of comparison, due to weak business volume in third-quarter 2004.Operations in Spain and the United Kingdom continued to enjoy solid growth driven by the buoyant building and infrastructure markets. Industrial spending began to recover in France and economic conditions improved in Italy. That said, invoicing for medium voltage projects remained low in both countries.Sales improved noticeably in Eastern Europe for the second quarter in a row, rising by more than 15% on the back of strong demand in the industry market and notably a good performance in Russia.In North America, sales rose a highly sustained 11.0% thanks to the impact of both very favorable market conditions and effective growth plans. Demand was strong across all end markets, with construction in solid expansion and industrial investment on a continued uptrend. The energy management business recorded significant gains, reflecting the growing need for energy efficiency solutions.In the Asia-Pacific region, sales growth remained high at 12.0%. Sales were again up by more than 10% in China, on a par with the first half, despite a slowdown in industrial investments. This trend was offset by substantial gains of more than 20% on average in South-East Asia and India. Sales also rose in Japan, confirming the upturn in business there.In the Rest of the World, the very positive momentum continued with sales up 18.5%. Demand was particularly strong throughout South America, fuelled by a high level of investments in the mining, oil, and food and beverage industries. The Middle East’s fast-growing economies, buoyed by rising oil prices, drove a sustained expansion in the construction and infrastructure markets. Annual targets revised upwards Commenting on the results, Henri Lachmann, Chairman and Chief Executive Officer, noted that: “Our geographic diversity and development in new activities such as energy management, building automation and ultra terminal allow us to take advantage of all growth opportunities in our markets, offer the broadest possible lineup to customers around the world and gain market share. Assuming current economic and currency conditions, we have again revised our full-year targets upwards, to 7% organic sales growth and 15%-20% increase in operating income."Schneider Electric’s full-year financial results and fourth quarter sales data will be released on February 16, 2006. Schneider Electric: Giving the best of the New Electric World to everyone, everywhere, at any timeSchneider 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 85,000 employees and operations in 130 countries, Schneider Electric generated sales of €10.4 billion in 2004 through the 13,000 distributors outletsVisit Schneider Electric at www.us.schneider-electric.com.
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