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2022-08-26
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Schneider Electric announced its second quarter results

[Guide: Schneider Electric announced its second quarter results. In the second quarter, its sales reached a double-digit growth rate, its EBITA raito increased by 3.6 percentage points to 15.2%, its net profit doubled to 735 million euros, and its EBITA raito target in 2010 increased to 15.5%]

rue Maison (France), July 30, 2010 - Schneider Electric, a global energy efficiency management expert, today released its performance report for the second quarter of 2010 to protect the trading order; In terms of strengthening the law enforcement of consumer rights protection and business performance in the first half of the year as of June 30, 2010

Jean Pascal tricoire, chairman and CEO of Schneider Electric, said: our business has achieved significant growth in the past few months. This achievement is obviously due to our continuous expansion of diversified end markets, especially the industrial and data center businesses. The new economy still maintained a steady double-digit growth momentum. In addition, we have also repeatedly won business opportunities in new markets such as energy efficiency and renewable energy, and achieved strong profitability. With the vigorous promotion of a company plan, the cost structure has been further improved. At present, we have significantly improved industrial productivity and operational efficiency, and will be able to achieve the goal of reducing costs by 1.6 billion euros in three years in 2011. On the other hand, we have also restarted our investment in the growth of new economies. Therefore, we put forward the guidance target for the whole year, with the expectation that the organic growth rate of sales in the second half of the year will be basically the same as that in the first half of the year, and set the annual EBIT ratio at about 15.5% without considering the impact of restructuring costs and AREVA's distribution business integration. The integration of Areva's distribution business has made us further in the medium voltage business, which has been on track and will be the focus of our business in the second half of the year

performance focus in the second quarter of 2010

sales in the second quarter of 2010 achieved double-digit growth in both powdery and granular forms. All businesses and regions resumed growth, with total sales reaching 4.661 billion euros. Based on the current structure and exchange rate, the growth rate was 18.5%. If the influence of structure and exchange rate was excluded, the growth rate was 10.2%

according to business areas, Schneider Electric distribution business sales accounted for 56% of the total sales in this quarter, with a year-on-year increase of 5.8%. In terms of medium voltage business, despite the continued weakness of the construction market and the reduction of public facilities expenditure, it has remained stable. The growth of low-voltage business accelerated in the second quarter, mainly due to the rebound in industrial demand and the strong pull of new economies, which made up for the still weak power demand in the mechanical resonance mature market led by Western Europe. Due to the steady growth of projects in the Asia Pacific region and the successful deployment of renewable energy projects in Europe, solutions and services have been able to achieve strong continuous improvement. All regions are recovering growth, with Asia Pacific ranking first, followed by Western Europe and North America

the sales of industrial automation business accounted for 20% of the total sales, with a significant increase of 27.1%. As in the previous quarter, the global recovery of end market demand was the main driver of the business growth, especially the cooperation with original equipment manufacturers and the recovery of infrastructure investment in new economies. The recovery was strengthened by the reduction of the shortage of some components due to some expected customer orders. The successful introduction of new supplies by original equipment manufacturers has led to strong growth in the solution business. All regions have shown strong growth momentum, especially the Asia Pacific region

it business sales accounted for 14% of total sales, with a year-on-year increase of 10.0%. Small systems continue to benefit from the continued demand for commercial networks and new product launches. While large-scale systems have achieved rapid growth in most regions, reflecting the increasing demand for data centers. Services also continue to contribute to growth. By region, Eastern Europe, led by Russia, experienced the largest rebound in the second quarter. The Asia Pacific region is facing a shortage of some raw materials for strong potential demand. North America led the rebound, while the recovery in Western Europe was relatively slow

the sales of building business accounted for 8% of the total revenue, achieving an organic year-on-year growth of 2.4%. The increasing demand for security products in new economies has made up for the continued weakness of construction related businesses to some extent. In the field of solutions, due to the energy-saving and efficiency enhancement projects in North America and Western Europe, the installation of basic services and advanced services continued the good momentum of the previous quarter

cst business sales accounted for 2% of total revenue, with a year-on-year increase of 30.2%. Compared with the record low sales in the second quarter of last year, the growth in this quarter is due to the strong recovery of automotive and truck customer demand and the global rebound in general industrial demand, which is the main end market of this business at present

by region, the sales in Western Europe accounted for 32% of the total sales, with a year-on-year increase of 6%. Sales in North America accounted for 26% of total sales, with a year-on-year increase of 6%. Sales in the Asia Pacific region accounted for 25% of total sales, with a significant increase of 24%. Sales in other parts of the world accounted for 17% of total sales, with a year-on-year increase of 8%. Among them, sales in new economies increased by 17% in the second quarter, accounting for 35% of sales in the first half of 2010

recent news

Alstom and Schneider Electric signed an agreement with AREVA on January 20, 2010 to acquire the latter's power transmission and distribution business, namely, AREVA power transmission and distribution. Schneider Electric completed the transaction on June 7, 2010, acquiring the distribution business of Areva power transmission and distribution. The cash impact of this transaction totalled 1.024 billion euros and remains to be adjusted

on July 1st, 2010, the supervisory board of Schneider Electric appointed Mrs. Dominique senequier as a non voting member. The nomination of members of its board of directors will be put forward at the 2011 Annual General Meeting of shareholders

on July 9, 2010, Schneider Electric announced the issuance of two bonds totaling 800million euros and the acquisition of some of its bonds due in July 2013. The purpose of these transactions is to refinance some of the group's debt, especially the 900million Euro bonds due in August, and to extend the average debt maturity. Repurchasing some bonds maturing in July 2013 is also to reduce the financing cost from 2011

outlook

Schneider Electric expects that the organic growth of sales in the second half of the year will be roughly the same as that in the first half. The recovery of industrial and it businesses is expected to continue, but it is more challenging to continue to improve based on the good status quo. The building and medium voltage businesses may start to recover continuously in the later stage. The strong momentum of new economies should continue to support growth in the second half of the year, while mature markets are likely to return to the path of slow recovery. Therefore, Schneider Electric will now track and learn the spirit of Olympic athletes without the impact of restructuring costs and Areva's power distribution business merger. The TA raito target is about 15.5%

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