The 2020 Mid-Year Economic Update_long

Schneider Electric Grows 9.9% in 3Q

Schneider Electric sales for the third
quarter of 2006 totaled 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 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 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.

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