Schneider Electric Increases Revenue Target For Second Time This Year
Posted by Schneider Electric on November 22nd, 2017
The French automation business, which is buying Britain's Aveva, claimed good dynamics in the third quarter as it increased its growth target to 4% for 2017.
French industrial and software group Schneider Electric SE (SBGSF) , which has agreed to buy Britain's Aveva Group Plc (AVEVF) , increased its 2017 earnings targets for the second time this year.
Schneider said Thursday, Oct. 26, that third quarter organic revenues, which strip out currency fluctuations, climbed 2.7% year-on-year to €5.9 billion (.97 billion) boosted by double-digit sales growth in China and "acceleration in Western Europe and Rest of the World."
Schneider's reported growth, which includes currency fluctuations, dipped 1.9% as a strong euro took its toll on overseas earnings, costing the company a total €206 million in revenues.
"Third quarter underlying performance shows a further acceleration vs first-half with revenues up about 3.3%," once the sales figure is adjusted for a reduction in working days over the period, the company said. Schneider increased its organic revenue growth target to "around 4%" raising it from the earlier goal of 1% to 3% growth."
Despite the improved forecast, Schneider shares were largely unmoved on Thursday, trading early afternoon in Europe at €73.18, up just €0.10.
The lackluster response reflects analyst expectations, which had already been upgraded, meaning that the company's improved target brings its growth forecast in line with consensus expectations, Goldman Sachs noted on Thursday.
Schneider stock has gained over 10% this year, boosted by continued strong demand for its energy management and automation control software and hardware.
About Schneider Electric
Schneider Electric is the global specialist in energy management and automation. With revenues of ~€25 billion in FY2016, our 144,000 employees serve customers in over 100 countries, helping them to manage their energy and process in ways that are safe, reliable, efficient and sustainable. From the simplest of switches to complex operational systems, our technology, software and services improve the way our customers manage and automate their operations. Our connected technologies reshape industries, transform cities and enrich lives. At Schneider Electric, we call this *Life Is On*. Schneider Electric is the worldwide expert in energy administration and automation. With incomes of ~€25 billion in FY2016, our 144,000 representatives serve clients in more than 100 nations, Schneider Electric helping them to deal with their energy and process in ways that are protected, dependable, productive and practical. From the least difficult of changes to complex operational frameworks, Schneider Electric innovation, programming and administrations enhance the way our clients oversee and computerize their operations. Schneider Electric associated advancements reshape businesses, change urban communities and advance lives. At Schneider Electric, we call this Life Is On. Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment.
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