Electrical Manufacturers 3Q Sales: Schneider, Thomas & Betts, Cooper

Schneider Electric
Schneider Electric reported sales growth of 28.4% in the third quarter 2007, with revenues of 4.5 billion euro (US$6.4 billion). Acquisitions contributed 17% of sales growth. The currency effect reduced sales by 2.4%.
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Organic growth was 13.8%. Schneider attributes the growth to strong demand for energy efficiency, critical power and investment in infrastructure for water treatment, raw materials extraction and transformation, transportation and data centers.
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Sales in North America in constant terms were up 13.1% to 1.3 billion euro (US$1.8 billion). For the first nine months, sales were up 12.7% in North America.
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Trends were reported as strong in all end markets except residential, which accounts for just 12% of Schneider's North American business. In North America, Schneider is targeting energy and infrastructure and focusing on structural needs such as energy efficiency, critical power, building control and security and services.
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In Europe, sales rose 12.2% for the quarter and 12.3% year-to-date. Eastern Europe made a significant contribution to the sales gain, with growth of 30%, due to buoyant" markets in Russia. In Western Europe, growth was strongest in Spain and the UK, lifted by energy and infrastructure markets. High industrial investment drove sales in Italy and Germany.
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Asia-Pacific sales were up 14.7% for the quarter. China sales continue to rise by around 20%; India and Southeast Asia were also strong.
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Electrical Distribution sales were up 15.5% for the quarter; and Automation and Control up 10.1%.
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The new Critical Power and Cooling Services unit had organic growth of 14% in the third quarter and accounted for 16% of overall sales.
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Thomas & Betts
Thomas & Betts Corp., Memphis, TN, reported third quarter sales of $552.7 million, up 16.8% from the prior-year period. Acquisitions accounted for $33.6 million of the sales increase. Foreign currency benefited sales by $11.5 million. Profit for the quarter was $51.3 million.

For the nine months ended Sept. 30, 2007, sales increased 11% to $1.5 billion. Profit was $134.9 million.
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Thomas & Betts reported "good activity" in commercial construction markets as well as "strong demand" for industrial products.
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Third-quarter Electrical segment sales increased 18.5% to $461.6 million, including $33.6 million in sales related to acquisitions. Continued solid demand in commercial construction and industrial markets contributed significantly to the sales improvement while foreign currency benefited the segment's sales by $11 million. Profit in this segment was $80.5 million, up 20.7%.


Sales in the Steel Structures segment were $58 million in the quarter, up 8.3% from last year. Steel Structures profit increased nearly 10%, to $10 million, reflecting the impact of higher sales volumes.

Year-over-year HVAC segment sales increased nearly 9% to $33.2 million. Segment profits increased nearly 32%.

Cooper Industries


Cooper Industries, Ltd., Houston, TX, reported third quarter revenues increased 14% to $1.5 billion from the same period last year. Profit rose 19% to $153.1 million.
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Core growth was 9%, with acquisitions contributing 3% to revenue growth, and currency translation contributing 2%.
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Revenues for the first nine months of 2007 were $4.36 billion, a 13% increase from 2006.
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Electrical Products segment revenues for the third quarter of 2007 increased 15% to $1.3 billion. Recent acquisitions and favorable currency translation increased revenues 5%.
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Cooper reported that the increase in revenues for the Electrical Products segment reflected strength in the utility and industrial markets, international growth and solid growth in U.S. nonresidential

construction markets. As anticipated, the U.S. residential markets continued to be soft.
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In August, the Company acquired Illinois-based io Lighting, a dedicated light-emitting diode lighting fixture company, and Vermont-based Powerline Communications, Inc., a manufacturer of digital lighting control panels. Expected sales for the two companies in 2007 are $17 million and the combined purchase price was $22 million.
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In October, the Company announced a joint venture with the Nature Science and Technology Company, a privately-held medium voltage indoor switchgear manufacturer based in Zhejiang province, China. The joint venture, 60% controlled by Cooper, will allow Cooper access to indoor switchgear products that meet International Electrotechnical Commission standards, expanding upon its current offerings that meet American National Standards Institute electrical standards.
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Electrical Products segment revenues for the first nine months of 2007 grew 15% to $3.78 billion.
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Tools segment revenues for the third quarter of 2007 increased 7% to $199.4 million. Revenues for the first nine months of 2007 increased 4% to $574.2 million.
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Cooper Industries had 2006 revenues of $5.2 billion, approximately 85% of which are from electrical products.