RUEIL-MALMAISON, France — Schneider Electric announced today its second quarter revenues and first half results for the period ending June 30, 2015.
Highlights:
- H1 revenues reached €12.8bn up 9.8%, flat org. in Q2
- Adj. EBITA reached €1.6bn, up 6.4%, Adj. EBITA margin flat excl. Invensys in a challenging environment
- 2015 targets: Around flat organic growth in revenues and a significant growth in adj. EBITA at current FX rates, with a stable to moderate decline in adj. EBITA margin vs. 2014
The company’s net profit in the first half of the year fell to 719
million euros ($791 million) down from 821 million euros in the same period in 2014. The overall revenue was lifted by the weaker euro.
The electrical equipment maker cut its profitability target for the year as the collapse in oil prices and a weak economy in China dented its sales in the first half.
Jean-Pascal Tricoire, Chairman and CEO, commented: “In the first half we focused on deploying our strategy with ‘Schneider is On’ in an environment where headwinds from O&G and China were higher than expected. These headwinds, along with a high base of comparison for Invensys, particularly impacted our Industry business, which dragged down the Group performance. However, we saw solid growth in the U.S. construction market, improvements in Western Europe, good progress in adapting costs and in achieving Invensys synergies.
“In the second half our focus will be on driving the recovery of our Industry business, executing growth initiatives, delivering cost efficiency, and improving project margin. We expect continued growth in the U.S. construction market, sustained improvement in Western Europe, persistent weakness in China and in O&G related investments. Therefore, we target around flat organic growth in revenues, and a significant growth in adjusted EBITA at current FX rates, with a stable to moderate decline in adjusted EBITA margin versus 2014.
“As announced, we are working on a combination of a selected part of our industrial software assets with AVEVA to create a global leader in industrial software, and accelerate our development in this field.”
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