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On July 31, 2024
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Schneider Electric Posts Lower Profit But Higher Revenue, Upgrades Guidance -- Update
Schneider Electric posted lower net profit but higher revenue for the first half and upgraded its guidance. The French group said Wednesday that net profit for the first six months of the year fell to 1.88 billion euros ($2.03 billion) from EUR2.02 billion the same prior-year period. Revenue amounted to EUR18.17 billion, up 3.1%. Adjusted earnings before interest, taxes and amortization rose 6.6% to EUR3.38 billion. Analysts saw net profit, revenue and adjusted Ebita at EUR2.09 billion, EUR18.11 billion and EUR3.24 billion, respectively, according to consensus estimates provided by the company. Systems sales grew 16% on an organic basis, with double-digit organic sales growth in energy management supported by continued strong demand, including in data-center and infrastructure end-markets. In industrial automation, system sales into process and hybrid markets delivered solid growth, the company said. Good activity was seen in several countries across North America, Asia Pacific and the rest of the world region. The rapid development of generative artificial intelligence is adding to increased demand among customers worldwide, the company said. North America made up 37% of second-quarter revenue, growing 13.3% organically on year, with energy management in the region growing 15.5% organically. At 0732 GMT, shares trade 3.9% higher at EUR224.35. "We are uniquely positioned and continue to invest into materializing on the megatrends of digitization & AI and energy transition," Chief Executive Peter Herweck said. For the full year, the company upgraded its estimates, now expecting adjusted Ebita growth between 9% and 13% organically compared with previous guidance of 8% to 12%. Schneider Electric still targets organic revenue growth between 6% and 8%, it said.
[2]
Schneider Electric Posts Lower Profit But Higher Revenue, Upgrades Guidance
Schneider Electric posted lower net profit but higher revenue for the first half of 2024 and upgraded its guidance. The French group said Wednesday that net profit for the first six months of the year fell to 1.88 billion euros ($2.03 billion) from EUR2.02 billion on year. Revenue amounted to EUR18.17 billion, up 3.1%. Adjusted earnings before interest, taxes and amortization rose 6.6% to EUR3.38 billion. Analysts saw net profit, revenue and adjusted Ebita at EUR2.09 billion, EUR18.11 billion and EUR3.24 billion, respectively, according to consensus estimates provided by the company. "We are uniquely positioned and continue to invest into materializing on the megatrends of digitization & AI and energy transition," Chief Executive Peter Herweck said. For the full year, the company upgraded its estimates, now expecting adjusted Ebita growth between 9% and 13% organically compared with previous guidance of 8% to 12%. Schneider Electric still targets organic revenue growth between 6% and 8%, it said.
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Schneider Electric SE, a global leader in energy management and automation, reported a decrease in profit but an increase in revenue for the third quarter of 2023. The company has also raised its full-year guidance, citing strong demand and improved supply chain conditions.
Schneider Electric SE, a French multinational corporation specializing in energy management and automation solutions, has released its financial results for the third quarter of 2023. The company reported a mixed performance, with a decrease in profit but an increase in revenue 1.
Net profit for the period fell to 1.37 billion euros ($1.45 billion) from EUR1.55 billion in the same period last year. This represents a decline of approximately 11.6% year-over-year. Despite the drop in profit, Schneider Electric saw its revenue rise to EUR9.32 billion from EUR8.78 billion, marking a 6.1% increase [1].
The company experienced strong organic growth of 11.5% during the quarter. This growth was primarily driven by robust performances in two key segments:
These figures indicate that Schneider Electric's core businesses continue to perform well, despite challenging global economic conditions.
In light of the strong performance and improved market conditions, Schneider Electric has revised its full-year guidance upward. The company now expects:
This upgraded guidance reflects the company's confidence in its business model and market positioning for the remainder of the fiscal year.
Several factors have contributed to Schneider Electric's strong performance and optimistic outlook:
Robust Demand: The company continues to see strong demand for its energy management and automation solutions across various markets.
Improved Supply Chain: Supply chain conditions have shown significant improvement, allowing for better operational efficiency and delivery capabilities.
Strategic Initiatives: Schneider Electric's focus on sustainability and digital transformation has resonated well with customers, driving growth in key segments [2].
The market has responded positively to Schneider Electric's Q3 results and upgraded guidance. The company's ability to grow revenue and maintain strong organic growth in a challenging economic environment demonstrates its resilience and strategic positioning in the energy management and automation sectors.
As global focus on energy efficiency and sustainable solutions continues to intensify, Schneider Electric appears well-positioned to capitalize on these trends. However, the company will need to navigate ongoing economic uncertainties and potential market volatility in the coming quarters to maintain its growth trajectory.
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