SU Schneider Electric SE

   By Nathan Allen 
 

France's Schneider Electric SE (SU.FR) raised its 2018 guidance after net income rose 7% in the first half, the company said Thursday.

Net profit in the first half was 1.02 billion euros ($1.19 billion), up from EUR958 million a year earlier, while reported revenue rose 1.2% to EUR12.32 billion from EUR12.17 billion, the company said.

Schneider attributed the higher earnings to strong organic growth, which reached 7% in the first half, and greater market share in several key countries, including China.

Acquisitions boosted group revenue by EUR77 million in the second quarter, helping to offset a EUR343 million foreign-exchange headwind, the company said.

Chief Financial Officer Emmanuel Babeau said the company had "more than overcome" higher costs for raw materials and freight through price increases.

In light of what it called "very good" results, Schneider raised its sales and earnings guidance for 2018. It now expects adjusted earnings before interest, taxes and amortization to grow organically between 7% and 9%, compared with an earlier estimate of 7%.

Organic sales growth for the year should be between 5% and 6% compared with a previous target range of 3% to 5%, Schneider said.

The group also said it has developed a plan to improve performance at its medium-voltage unit, which could include partnerships and disposals over the next two years.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

July 26, 2018 01:44 ET (05:44 GMT)

Grafico Azioni Schneider Electric (EU:SU)
Storico
Da Mar 2024 a Apr 2024

Grafico Azioni Schneider Electric (EU:SU)
Storico
Da Apr 2023 a Apr 2024