RUEIL-MALMAISON (dpa-AFX) - Shares of Schneider Electric S.A. (SBGSF.PK) declined around 3 percent in the morning trading in Paris after French energy management firm reported lower profit in its first half hurt by foreign exchange losses and integration costs on recently acquired Invensys. Revenues, however, increased from last year. The company confirmed its full-year 2014 targets.
For the first half, net income (Group share) edged down 1 percent to 821 million euros from 831 million euros last year. The prior-year results have been restated for Delixi full consolidation, among other things.
On an underlying basis, net income totaled 851 million euros for the recent period, compared with 822 million euros a year ago.
Half-yearly adjusted earnings before interest, tax and amortization or EBITA rose 0.1 percent to 1.504 billion euros. At constant rates, it grew 10.8 percent.
Adjusted EBITA margin of 12.9 percent dropped 40 basis points on a reported basis, but climbed 40 basis points at constant currency rates.
First-half 2014 revenues were 11.70 billion euros, 3.2 percent higher than last year's 11.34 billion euros, despite strong currency headwinds. Revenues increased 8.6 percent on constant currency basis. Like-for -like revenues edged up 0.6 percent and are up 2.7 percent excluding Infrastructure.
In the second quarter, revenues were 6.14 billion euros, down 0.7 percent on reported basis, but up 4.8 percent on constant currency basis. Like-for-like revenues dropped 1.1 percent in this quarter.
The company said Invensys contributed strongly to its first half performance, with orders growing low single-digit organically, and adjusted EBITA margin up 3.9 pts reaching 14.7 percent.
Schneider Electric said the execution of Invensys synergies is well on track and confirmed a cost saving target of approximately 70 million euros by end of 2014. Invensys is expected to be high single-digit EPS-accretive for the Group in 2014.
Looking ahead, for fiscal 2014, the company continues to expect low single-digit organic growth in revenue, and 0.4 points to 0.8 points improvement of the adjusted EBITA margin from the prior year's pro-forma level of 13.9 percent, excluding the currency impact.
Chairman and Chief Executive Jean-Pascal Tricoire said, 'Priorities for the second half remain unchanged. We will continue to focus on execution to drive organic growth, efficiency and smooth integration of acquisitions. Looking forward, we expect continuous growth of our early cycle businesses, sequential improvements in IT and Infrastructure and a strong contribution from Invensys.'
In Paris, Schneider Electric shares are losing 1.91 euros or 2.83 percent, and trading at 65.49 euros.
Copyright RTT News/dpa-AFX