RUEIL-MALMAISON (dpa-AFX) - French energy management firm Schneider Electric S.A. (SBGSF.PK) said that its third quarter revenues were 6.064 billion euros, down 1.7% organically and about flat underlying, while it was down 8 percent on reported basis.
Net acquisitions had an impact of -€283 million or -4.3% on the revenues. This includes mainly the deconsolidation of Delixi , the disposal of Juno Lighting, Telvent Transportation, and some minor acquisitions and disposals in other businesses.
The impact of foreign exchange fluctuations was negative at -€144 million or -2.0%, primarily due to the depreciation of the Chinese yuan, British pound, and several new economies' currencies against the euro.
Based on current rates, the negative FX impact on fiscal year 2016 revenues is now estimated to be about -€0.8 billion, due to the strengthening of the euro against several currencies.
The Group said it is on track in its plan to buy back about 1.5 billion euros worth of shares towards the end of 2016.
Based on this quarter, the Group reaffirmed its target for full year 2016. Revenues is expected to be about flat underlying organic growth before project selectivity impact (estimated to be -2% in H2). It expects +60bps to +90bps improvement on adjusted EBITA margin before FX. The negative FX impact on margin is estimated at -50bps to -60bps at current rates.
Separately, Schneider Electric said it is hosting a meeting today with investors and financial analysts. It targets average organic growth of around 3% over the next 3 years, excluding Infrastructure, with a gradual ramp-up through the years. Infrastructure focus is geared to profitability enhancement.
In addition to the strategic and financial presentation, the meeting will also include specific in-depth presentations focusing on Schneider Electric's Digital journey and a deep-dive into execution priorities by business.
The Group targets strong growth in underlying earnings per share over the next 3 years on account of solid organic growth in adjusted EBITA, lower cost of financing, and share buyback program.
The Group increased the Support Function Cost savings target for 2015-17 to 700 million euros -800 million euros. This results in overall cost savings target for the Group for 2015-2017 being enhanced to 1.7 billion euros -1.8 billion euros. The restructuring charges to generate the cost-savings are expected to be around 900 million euros over 2015-2017.
Based on the targeted organic growth and the adjusted margin improvement, the Group targets a yearly average +4% to +7% organic growth in Adjusted EBITA over the next 3 years.
The Group reaffirmed its progressive dividend policy with about 50% payout from Net income.
Copyright RTT News/dpa-AFX