Schneider Electric sales for the third quarter of 2006 totaled ﾀ3,480 million ($4,373 million), up 15.3% on a current structure and exchange rate basis from the year-earlier period. Acquisitions (primarily Juno Lighting, BEI Technologies, Merten and Clipsal Asia) contributed a ﾀ216 million ($271 million), or 7.1% of growth for the period.
Schneider Electric benefited from a higher-than-expected demand in Western Europe and continued to see strong performance in emerging countries. With an average sales increase of 17%, these countries generated more than 50% of the Group's organic growth during the period.
Schneider Electric aggregate sales for the first nine months ended Sept. 30, 2006, rose 19.6% to ﾀ10,066 million ($12,650 million), representing a 10.8% increase on a constant structure and exchange rate basis, from the year-earlier period.
The breakdown by geographical region:
Europe, sales up 8.7% in the third quarter, up 8.6% in first nine months
North America, sales up 5.6% in third quarter, up 8.5% in first nine months
Asia-Pacific, up 15% in third quarter, up 10.8% in first nine months
Rest of the World, up 19.6% in third quarter, up 20.6% in first nine months
In Europe, sales rose 8.7% during the quarter, confirming the rate of growth seen in the first half. Schneider Electric says it is benefiting fully from powerful momentum in its end markets. The clear upturn in capital spending in the industry and non-residential building markets continued across virtually the entire region, with growth of more than 10% in Northern Europe, Spain and Italy.
Sales increased by more than 20% in Eastern Europe.
In North America, sales growth of 5.6% was impacted by a higher basis of comparison than in the previous quarters. Nevertheless, the business trend remained solid, with strong demand in all nonresidential construction segments amply offsetting the residential market's slowdown, Schneider reported. Services and energy management continued to expand sharply.
Sales in the Asia-Pacific region continued to increase at fast pace, up 15.0%. After making up for low invoicing volumes in the second quarter, operations in China were able to report growth in excess of 15% for the first nine months. Schneider Electric pursued its intensive development in India, where sales expanded by nearly 35% in the third quarter. Sales in the other Asian countries increased strongly against a backdrop of very favorable regional environment.
In the Rest of the World, sales gained 19.6% compared with nearly 20% in third-quarter 2005. This performance reflects ongoing expansion in the oil and mining industries in the Middle East, South America and Africa.