LIMOGES, France — Legrand releases its results for the first quarter of 2015 today. In the first four months of 2015, group sales rose by +7.4% in total to reach nearly €1.2 billion, underpinned by favorable exchange-rate effects (+6.5%) and the broader scope of consolidation resulting from acquisitions (+2.6%). Sales in the USA/Canada region were up almost 41% in the first quarter of 2015, buoyed by favorable exchange-rate effects, the acquisition of Lastar and healthy organic(1) growth. As expected, the United States is now the group’s number one country by sales.
Excluding France, the organic change in sales is steady (+0.1%). Healthy growth in the USA/Canada region and in most countries in Southern Europe(2), Eastern Europe excluding Russia and South-east Asia offset declines in business observed in other mature European countries as well as in Russia and China.
In France, the organic change in sales came to -8.1%, including, as announced, a reverse effect of -5 points from high demand from distributors in France observed in the fourth quarter of 2014.
For the group as a whole, the organic change in sales was -1.7% in the first quarter, in line with 2015 target.
Adjusted operating income stood at €218.6 million in the first quarter of 2015, up +3.1% from the first quarter of 2014. Adjusted operating margin before acquisitions(4) for the first quarter of 2015 was 19.0% of sales (18.8% including acquisitions), in line with the group’s full-year target.
Net income excluding minorities rose to total €127.4 million or nearly 11% of sales.
Generation of free cash flow remained very solid, allowing the group to continue self-financing its development over the long term.
2015 Targets Confirmed
Based on 2015 first-quarter achievements, Legrand confirms its 2015 targets(5) which call for “organic growth in sales of between -3% and +2%”, and “adjusted operating margin before acquisitions(4) at between 18.8% and 20.1% of sales”.
Legrand will also pursue its strategy of value-creating acquisitions. In this respect, Legrand today announced two new acquisitions—IME(6) in Italy and Valrack in India—representing combined additional sales of over €30 million.
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