Schneider Electric 2016 Net Up 24%, Despite Revenue Decline
February 16 2017 - 2:31AM
Dow Jones News
By William Horobin and Inti Landauro
PARIS--France's Schneider Electric SE (SU.FR), one of the
world's biggest suppliers of power equipment and services said
Thursday that its 2016 profit rose 24% as cost cutting and a
decline in amortization offset falling revenue.
Net profit rose to 1.75 billion euros ($1.86 billion) in 2016
from EUR1.41 billion in 2016, despite revenue falling 7.3% to
EUR24.69 billion. Analysts polled by FactSet expected a net profit
of EUR1.90 billion out of sales worth EUR24.69 billion.
The company's revenues fell after it sold some units and as
foreign currencies depreciated against the euro.
Schneider Electric repeated its full-year targets of between 1%
and 3% organic revenue growth, excluding its infrastructure
division, where it expects a decline of between 4% and 5%. North
America is expected to post "modest growth," and Western Europe is
expected to grow "moderately" with a lower euro and relatively low
oil prices, the company said.
Schneider Electric also said it expects a strong increase in
raw-material costs of around EUR200 million in 2017.
-Write to William Horobin at william.horobin@wsj.com
(END) Dow Jones Newswires
February 16, 2017 02:16 ET (07:16 GMT)
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