Schneider Electric announces Half-Year Results: Strong margin improvement in first half, full year 2010 targets raised

Thursday, Aug 05, 2010

¹EBITA before restructuring costs and integration impact of Areva Distribution
²EBITA: EBIT before amortization and impairment of purchase accounting intangibles and impairment of goodwill.

Jean-Pascal Tricoire, President and CEO, comments: “Our businesses gained traction in the past months. We benefited clearly from our diversified end-market exposure, with the industrial market and data-centers the first to rebound. Robust momentum in the new economies continued with double-digit growth. And we captured new market opportunities, notably in the fields of energy efficiency and renewable energy.

We also delivered strong profitability improvement. The cost structure further improves as a result of the focused execution of our One program. Given the significant industrial productivity and operational efficiency already attained, we are well positioned to achieve the 3-year cost reduction target of € 1.6 billion by 2011. In parallel, we have already restarted investment for growth in new economies.

We therefore raise our full year guidance and now expect the second half organic sales progression to be broadly in line with the level of the first half, and target a full year EBITA margin of around 15.5% before restructuring costs and consolidation impact of Areva Distribution.

The integration of the Areva Distribution, a clear step-change for our medium voltage business, is well on track and will be a strong focus of the second half.” 

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Source: Schneider Electric