The hottest Schneider Electric released its 2010 a

2022-08-16
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Schneider Electric released its 2010 full year results, and the energy sector will grow in 2011

it is estimated that the sales volume will exceed 20billion euros for the first time

strong free cash flow, reaching 1.7 billion euros, and the net debt will drop to 2.7 billion euros

Areva power distribution has a strong start, which is higher than expected

2011 will be a year of stable business growth and profit improvement

Lue Maison (France), On February 17, 2011, Schneider Electric today disclosed its fourth quarter sales and full year results for the reporting period ending December 31, 2010

Jean Pascal tricoire, President and CEO of the company, commented that our team achieved record sales and profitability in 2010. Including Areva power distribution, our annual sales exceeded 20billion euros for the first time. All our businesses and regions achieved growth in 2010, thanks to the improvement of the end market, the customer-centric organizational structure, and the strong business coverage in emerging economies, which accounted for 37% of sales in 2010

we entered 2011 with a strong momentum. In this new cycle stage, we will invest in areas related to energy efficiency, smart electricity and growth in emerging economies. At the same time, we hope to continue to promote the improvement of cost efficiency according to the strategic route of one of our Schneider Electric plans. A solid balance sheet will enable us to achieve value creating external growth and accelerate our strategic deployment

for 2011, our goal is to achieve a steady growth in sales, an organic growth rate of 6% to 9%, and an EBITA surplus of 15.0% to 15.5% of sales, which is expected to be higher than the 14.5% level in 2010

ebita: EBIT before deducting depreciation and impairment of intangible assets and goodwill impairment of M & A accounting. Security is also higher

financial information (page 2)

first, driven by the strong business in the industrial sector, the rebound in the power sector and the vitality of emerging economies, organic sales increased by 12.1% in the fourth quarter

in the fourth quarter of 2010, sales reached 5.563 billion euros, an increase of 36.1% based on the current floating structure and exchange rate. Sales increased by 12.1% year-on-year

organic growth of businesses in the fourth quarter

power (accounting for 50% of sales in the fourth quarter) achieved strong improvement in the fourth quarter, with sales increasing by 10.8% year-on-year. The medium voltage business has confirmed continuous improvement thanks to improved trends in its key markets, especially in non residential construction, energy and infrastructure. Driven by the improvement trend in most regions and terminal markets, the low-voltage business continues to accelerate its growth. The growth of solutions exceeded that of products during the quarter, which was due to the steady growth of renewable energy projects and the contracts obtained in the end markets of infrastructure and non residential buildings. Although all regions achieved positive growth in the fourth quarter, Asia Pacific, Latin America and Russia remained the growth leaders

Areva distribution (accounting for 11% of sales in the fourth quarter) generated sales of 601 million euros during the quarter, resulting in a total sales of 1.23 billion euros between June and December. Details are attached in the merger impact section and section IV

industry (accounting for 17% of the sales in the fourth quarter) achieved another quarter of strong growth. Even compared with the excellent performance in the same period of last year, the sales increased by 20.6% year-on-year. All business lines benefit from strong global industrial production. The impact of component shortages that plagued the business in previous quarters has been mitigated. The trend of solutions business is still very strong, which reflects the growth of market share achieved with OEM, the increase of capital investment in key markets such as mining and water supply and drainage, and the successful release of new supply content for emerging economies. Balanced growth has been achieved in all areas

it (accounting for 13% of sales in the fourth quarter) sales increased by 9.6% in this quarter over the same period of the previous year. The growth of the solution business has exceeded the development of small systems, confirming the global demand for overall data center solutions. The shortage of components is still a problem in some places. In terms of regions, North America continues to take the lead, while western hy-0230 microcomputer controlled electronic universal material testing machine Europe has also achieved continuous improvement. Emerging economies benefited from the strong development of Russian business and the good development momentum in most parts of Asia

financial information (page 3)

sales of buildings (accounting for 7% of sales in the fourth quarter) increased by 9.1% year-on-year, significantly stronger than in previous quarters. The impetus for this improvement comes from the recovery of video security products business, especially in emerging economies, and the further accelerated development of solutions business, which is partly due to the energy efficiency contracts obtained in North America and Northern Europe, as well as active service business

cst (accounting for 2% of the whole group) sales increased by 9.6% year-on-year, continuing to benefit from the recovery of truck and general automobile markets and strong global industrial demand. The resumption of business in the aerospace sector was confirmed. The business in Western Europe was strong, while that in North America slowed down slightly, because the region was the first to recover in 2009. From 2011, CST will be merged into the industrial business

organic growth by region 1 in the fourth quarter

Western Europe (accounting for 34% of sales in the fourth quarter) recorded steady growth, up 12% year-on-year. The French business continued to accelerate during the quarter. Germany and Italy remain strong, thanks to continued OEM demand and solar farm projects obtained in Italy. Compared with the low data of the previous year, Spain and Nordic countries still returned to single-digit growth

Asia Pacific (accounting for 25% of sales in the fourth quarter) is now the second largest business region of the group. Under the condition of a high base in the previous year, it increased by 21% in this quarter. The momentum of the whole region is very strong, and the main driving forces for development come from China, India and the Pacific region

North America (accounting for 22% of sales in the fourth quarter), with a year-on-year increase of 7%, is in a stable recovery state, thanks to strong it and industrial businesses and gradually stabilizing construction related businesses. Steady performance in Mexico and Canada also contributed to this quarter's growth

financial information (page 4)

the rest of the world (accounting for 19% of sales) increased by 9% year-on-year. The trend in Eastern Europe and Latin America continues to be very positive, while the Gulf region in Africa and the Middle East is weak

sales in emerging economies increased by 15% year-on-year in the fourth quarter, accounting for 37% of the annual sales reported in 2010, including Areva power distribution

including Areva power distribution, the group's sales exceeded 20billion euros (20.228 billion euros) for the first time in the whole year. In the past few years, the weight of the four regions of the group has gradually changed. Its coverage has spread all over the world today, and a good balance has been achieved among regions

merger impact - integration of Areva distribution

acquisition contributed +15.9% growth in this quarter, i.e. € 648million, of which € 601million was related to the integration of Areva distribution business. Other merger impacts mainly include the acquisition of SCADA group and cimac in terms of smaller equipment in industry and buildings

exchange rate impact

exchange rate fluctuations increased sales by 297million euros, which is mainly the result of the appreciation of most currencies relative to the euro, including the US dollar, RMB, Australian dollar and Japanese yen

II. 2010 annual performance

financial information (page 5)

EBI has a roller shaft TA set at the upper end of the fixed roller shaft seat, reaching a record high, and the surplus before deducting the restructuring cost and the combined impact of Areva power distribution reached 16.2%

EBITA before deducting the restructuring cost and the combined impact of Areva power distribution reached 2.967 billion euros, accounting for 16.2% of sales, up 3.4 percentage points. The strong improvement in profitability comes from the stable rebound in sales and the continuous implementation of cost efficiency improvement actions in accordance with the strategic roadmap set under the unified plan

before deducting restructuring costs and non recurring integration costs of Areva distribution, the reported EBITA reached a record high of € 3.052 billion, accounting for 15.6% of sales

key drivers contributing to this improvement include the following:

the strong rebound in sales increased profits by 630million euros

productivity and structural adjustment drove costs down by 580million euros. The impact of sales volume, control of fixed production costs and high procurement efficiency have increased industrial productivity to an impressive level, saving 505million euros. The cost of support functions was reduced by € 75million (excluding inflation). Continued cost reductions in mature markets offset investment in emerging economies and new market opportunities. Since the launch of the unified plan in 2009, the cumulative cost savings have exceeded 1.2 billion euros

the impact of exchange rate continued to be positive, resulting in an increase of € 192million in profits, which was mainly composed of exchange effects, as well as the impact of transactions involving the appreciation of Australian dollar, Canadian dollar and Brazilian real relative to the euro

the above gains were partially offset by the following key factors:

the comprehensive impact was -34million euros, much better than the same period of the previous year

the pricing impact was slightly negative, at -41million euros, in line with expectations

the adverse impact of raw material prices increased significantly in the second half of the year, resulting in a decrease in annual profits of 184 million euros. As a result of the strong rebound in business, the price of productive labor expanded to € 52million. The cost of support functions expanded to 136million euros, most of which was in emerging economies

finally, the net value of divestiture acquisitions increased profits by € 100million. In this total amount, AREVA power distribution contributed 85million euros

the € 25million non recurring expenses related to the acquisition of Areva distribution are included in the EBITA of € 3.027 billion before restructuring costs, but for better comparison, they are restated in the operating data mentioned here

reported EBITA of 2.931 billion euros, accounting for 15.0% of sales. Including the annual performance of Areva power distribution, EBITA was 2.94 billion euros, accounting for 14.5% of sales

financial information (page 6)

by business, the surplus in the power sector increased by 2.7 percentage points over the previous year, reaching 20.1% of sales. The profitability of the industrial sector jumped by 8.9 percentage points, accounting for 18.8% of sales. It continued the trend of gradual growth of its surplus, rising by 0.9 percentage points, accounting for 16.9% of sales. CST achieved the best earnings improvement, increasing by 10.8 percentage points to 16.4% of sales, thanks to the rebound in sales and continuous restructuring. The profitability of the building business was basically the same as that of the previous year, accounting for 10.3% of sales

with the new institutional setup implemented in accordance with the unified company plan, some functions reported at the business level in 2009 are now part of the group's global shared services, so they are classified as enterprise costs. As a result, the total enterprise cost in 2010 reached 438million euros, accounting for 2.2% of sales (excluding the non recurring expenses of Areva power distribution), similar to the level in 2009

net profit was higher than that in 2008, with EPS of 6.59 euros

net profit of 1.72 billion euros, an increase of 109% year-on-year. Net profit includes amortization and impairment of intangible assets of 228million euros, of which 43million euros are related to Ahai

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