Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Paris  >  Schneider Electric SE    SU   FR0000121972

SCHNEIDER ELECTRIC SE (SU)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

ABB Gains From North American Growth As Profit Rises

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/25/2012 | 10:56am CEST

-- Company says first quarter growth led by North America

-- Order growth weakest in China and southern Europe

-- Company says cost savings enough to compensate for pricing pressure

-- More than half of the decline in profitability due to lower demand in China

(rewrites, adding detail throughout)

 
   By John Revill 
   Of  
 

Power and technology company ABB Ltd. (ABBN.VX) Wednesday beat expectations with a slight rise in first quarter profit and said it would work on improving its margins which declined from a year earlier due to lower demand in China.

Like other power companies such as French rival Schneider Electric SA (>> SCHNEIDER ELECTRIC), ABB has been battling with slowing demand in Europe and China as the economies cool and prices fall for its products which range from power cables and transformers to robotics and industrial control systems,

A strong performance in North America helped ABB partially overcome the downturn, while it also pushed through cost cuts to combat weaker pricing during the three months to the end of March.

ABB said it is looking to profitable growth in 2012 and also improve operating margin, which fell to 11.8% from 12.1% a year earlier as the Zurich-company worked through a backlog of less profitable contracts.

"We saw improved profitability in several businesses compared with the end of last year, and we intend to build on that momentum to tap the many opportunities we see for profitable growth over the rest of the year," said Chief Executive Joe Hogan.

ABB said it expects its early cycle business, like automation and low voltage products, to remain steady or grow at a low single-digit rate.

The margin on operational earnings before interest, taxes, depreciation and amortization, the company's preferred measure which cuts out the impact of derivative gains and losses, fell to 13.9% from 15.7%.

More than half of the group's profitability decline was attributable to lower demand in China, especially in the construction and transportation sectors, ABB said.

"As we guided after the fourth quarter, there was continued price pressure on revenues coming out of the order backlog and mixed effects that impacted profitability, but we could mitigate most of that through cost savings," Hogan added.

Cost savings of $262 million, mainly though sourcing and productivity improvements, overcame lower prices of $250 million during the period.

U.S. orders increased by 27% but Hogan highlighted some weakness in China, where orders declined by 35%.

"We had considerable strength in the United States, that recovery continues, stronger than we anticipated," Hogan said. "Northern Europe continues to be good for us. Mediterranean areas are difficult and China saw some difficulties."

Net profit in the three months to March 31 rose 4.6% to $685 million, beating expectations of $674 million.

Sales rose 6% to $8.91 billion, beating forecasts of $8.84 billion, but orders were flat at $10.37 billion.

Analysts said the results were broadly in line with expectations, while the slower China situation should improve over the year.

"China is important for ABB, but other companies are more affected by the slowdown there. The improvement in the Americas can definitely make up for China," said Christoph Ladner, an analyst at Kepler Capital Markets.

At 0808 GMT, ABB shares were down 2.6% at 17.90 Swiss francs, valuing the company at CHF41.43 billion.

-By John Revill, Dow Jones Newswires; +41 43 443 8042 ; [email protected]

Stocks mentioned in the article : SCHNEIDER ELECTRIC
Stocks mentioned in the article
ChangeLast1st jan.
ABB LTD 1.13% 202.1 Delayed Quote.-9.28%
ABB LTD 1.00% 23.18 Delayed Quote.-12.14%
SCHNEIDER ELECTRIC SE 0.60% 74.38 Real-time Quote.4.35%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SCHNEIDER ELECTRIC SE
11:46aSCHNEIDER ELECTRIC : UK Shipping and Port Industry needs to think smart to curb ..
AQ
10:56aSCHNEIDER ELECTRIC : EcoStruxure Machine Advisor maximizes the value of data for..
AQ
04/25SCHNEIDER ELECTRIC : Introduces Data Center Module for mobile edge applications
AQ
04/25SCHNEIDER ELECTRIC : Huawei-Edge Computing New Breakthrough Bridges the 'Last Mi..
AQ
04/24SCHNEIDER ELECTRIC : Announces the Availability of APC Smart-UPS With SmartConne..
AQ
04/24Huawei Empowers Digital Industrial Transformation With Innovative New ICT Sol..
AQ
04/24SCHNEIDER ELECTRIC : EcoStruxure Machine Advisor Maximizes the Value of Data for..
AQ
04/24SCHNEIDER ELECTRIC : Strong start to 2018 Q1 Group org. revenue growth of +6.2% ..
AQ
04/24HOW DO ANALYSTS SEE AVEVA GROUP PLC : AVV) Margin Performing In The Years Ahead..
AQ
04/24HOW DO ANALYSTS SEE AVEVA GROUP PLC : AVV) Margin Performing In The Years Ahead..
AQ
More news
News from SeekingAlpha
04/24Schneider Electric Still Not Getting Full Marks For Its Performance 
04/23Honeywell Offers Attractive Leverage To Multiple Healthy Markets 
04/20Schneider Electric (SBGSY) Investor Presentation - Slideshow 
04/20A Good Start To The Year For ABB, But Management Has To Build From Here 
02/20ABB Is Getting There, But The Process Has Been Ugly 
Financials (€)
Sales 2018 25 375 M
EBIT 2018 3 700 M
Net income 2018 2 446 M
Debt 2018 4 361 M
Yield 2018 3,20%
P/E ratio 2018 17,06
P/E ratio 2019 15,52
EV / Sales 2018 1,89x
EV / Sales 2019 1,79x
Capitalization 43 648 M
Chart SCHNEIDER ELECTRIC SE
Duration : Period :
Schneider Electric SE Technical Analysis Chart | SU | FR0000121972 | 4-Traders
Technical analysis trends SCHNEIDER ELECTRIC SE
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 80,8 €
Spread / Average Target 9,3%
EPS Revisions
Managers
NameTitle
Jean-Pascal Tricoire Chairman & Chief Executive Officer
Christel Heydemann Executive Vice President-France Operations
Emmanuel Babeau Deputy Chief Executive Officer-Finance & Legal
Hervé Coureil Executive Vice President-Information Systems
Cathy Kopp Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
SCHNEIDER ELECTRIC SE4.35%53 144
KEYENCE CORPORATION-0.32%71 813
NIDEC CORPORATION2.17%44 909
EMERSON ELECTRIC0.30%43 359
DAIKIN INDUSTRIES, LTD.-6.90%33 807
EATON CORPORATION PLC-0.61%33 424