RUEIL-MALMAISON (dpa-AFX) - French energy management firm Schneider Electric S.A. (SBGSF.PK) Wednesday reported increased revenues for the third quarter, with growth across all regions and most businesses. Further, the company confirmed its full-year 2014 targets.
During the quarter, the company saw a fragile stabilization in Western Europe, and improvement in North America which compensated the slowdown in China and a mixed picture in other new economies.
Revenues grew 7 percent to 6.285 billion euros or $8 billion. On an organic basis, revenues grew 1.6 percent and advanced 3.9 percent, excluding Infrastructure.
Segment-wise, in Buildings & Partner, revenue advanced 5.3 percent to 2.762 billion euros and climbed 4.2 percent organically. The business had a strong performance in North America, driven by the U.S., thanks to continued investment in the residential market and data centers and a slow recovery of non-residential construction.
Industry revenues jumped 44.2 percent to 1.381 billion euros, and grew 5.4 percent organically. Western Europe achieved strong growth due to demand from export-oriented OEMs and commercial initiatives, despite slowing industry indicators.
Meanwhile Infrastructure revenues dropped 10 percent to 1.273 billion euros, and fell 5.8 percent organically. The firm said it sees some project delivery delays by customers due to the uncertain economic environment.
IT revenues slipped 1.1 percent to 869 million euros, but grew 1.2 percent organically as distributor destocking eased in Russia.
Geographically, revenues rose 8 percent in Western Europe to 1.656 billion euros, and advanced 7 percent in Asia-Pacific to 1.818 billion euros.
North America generated 1.625 billion euros, up 10 percent from last year, while revenue from Rest of World grew 3 percent to 1.186 billion euros.
Additionally, the firm issued an update on the recently acquired Invensys, saying synergies execution is on track and that 2014 targeted cost synergies are confirmed.
Jean-Pascal Tricoire, chairman and CEO, said: 'Invensys integration is on track and we confirm our 2014 targeted cost synergies. Additionally, the currency impact on revenues is less negative than expected thanks to the recent weakening of the euro.'
Looking ahead, the company said the environment is likely to continue to be challenging and confirmed its full-year 2014 targets.
The firm expects low single-digit organic growth in revenue, and 0.4 to 0.8 point improvement of the adjusted EBITA margin from the pro-forma level of 13.9 percent in 2013, excluding currency impact.
The stock is up 2.8 percent in paris in early morning trade at 60.50 euros.
Copyright RTT News/dpa-AFX