Manufacturers

Schneider Electric Reports Seven Percent Sales Growth for Third Quarter 2014

Rueil-Malmaison (France)—Schneider Electric reported third quarter revenues of €6,285 million, up +7% year-on-year on a reported basis. On an organic basis, revenues were up +1.6% and up +3.9% excluding Infrastructure.

The breakdown of revenues by business segment was as follows:

€ million

Q3 2014

9M 2014

Revenues

Organic growth

Reported growth

Revenues

Organic growth

Reported growth

Buildings & Partner

2,762

+4.2%

+5.3%

7,864

+3.8%

+2.0%

Industry

1,381

+5.4%

+44.2%

4,085

+5.2%

+41.1%

Infrastructure

1,273

-5.8%

-10.0%

3,637

-6.4%

-10.0%

IT

869

+1.2%

-1.1%

2,399

-0.9%

-6.5%

Group

6,285

+1.6%

+7.0%

17,985

+0.9%

­+4.5%

Jean-Pascal Tricoire, Chairman and CEO, commented “Third quarter revenues are up +7% in total and +1.6% organically. Our early cycle businesses deliver organic growth across all regions and IT turns positive. Infrastructure revenues are down organically, yet the business shows signs of improvement, with orders up high single digit driven by long-cycle projects. By geography and over the quarter, we see Western Europe stabilizing, U.S. improving and China slowing down as expected, while other new economies show a mixed picture.

Invensys integration is on track and we confirm our 2014 targeted cost synergies. Additionally, the currency impact on revenues is less negative than expected thanks to the recent weakening of the euro.

Looking ahead, we expect the environment to continue to be challenging. Our priorities remain organic growth, efficiency and integration of acquisitions and we maintain our full year 2014 targets.”

Highlights include:

  • Early cycle businesses continued to lead the growth, with Industry and Buildings & Partner revenues up +5.4% and +4.2% organically respectively
  • IT revenues turned positive, Infrastructure orders were up high single digit driven by long-cycle projects
  • Western Europe showed signs of stabilization, though fragile. All other regions grew
  • Invensys synergies execution is on track and FX headwinds are easing
  • Full year targets maintained
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