SCHNEIDER ELECTRIC : Sees Mixed 2013 After Net Profit Rose 3%
02/21/2013| 02:50am US/Eastern
Schneider Electric SA (SU.FR) Thursday said it expects the economic environment to remain mixed in 2013 with continued challenges in Western Europe, as it posted a 3% rise in its full-year net profit to EUR1.84 billion from EUR1.79 billion a year earlier.
- The group said though it sees opportunities for acceleration in the new economies and a slow recovery in North America.
- Based on current market conditions, the group targets a low-single digit organic growth in sales and a stable to slightly up adjusted Ebitda margin for the year 2013.
- At the annual meeting on Apr.25, 2013, shareholders will be asked to approve a dividend of EUR1.87 per share, compared with EUR1.70 last year. The proposed dividend will be paid fully in cash on May 7, 2013.
- The net income adjusted for non-recurring impairment charge reached EUR2.023 billion for the first time, up 12% year-on-year. This resulted in earnings per share of EUR3.73 on an adjusted basis, up 11% compared to previous year.
- Sales in 2012 grew 7% to EUR23.95 billion from EUR22.35 billion a year earlier.
- Fourth-quarter sales increased 2% to EUR6.44 billion.
- In the fourth quarter, currency fluctuations generated a positive contribution of EUR174 million, due to the appreciation of most major currencies against the Euro, especially the U.S. dollar and Chinese yuan, while the depreciation of the Brazilian real had a slightly negative impact.
- Full year adjusted Ebitda increased 10% to EUR3.52 billion, reflecting the solid execution of the Connect company program. The higher profitability, achieved despite negative volume and unfavorable mix, was driven by strong pricing discipline, continuous push for operational efficiency and improving margin of the solution business. As a result, adjusted Ebitda margin improved 0.4 point to 14.7% of sales.
- Schneider Electric's net debt amounted to EUR4.4 billion (EUR5.27 billion in December 2011) after the dividend payment of EUR919 million and acquisition spending of EUR242 million. The net debt-to-equity ratio was low at 26% as of December 31, 2012. The Group's net debt to adjusted EBITDA ratio was down from 1.4x to 1.1x in 2012 (based on an adjusted EBITDA at the record high of EUR4.16 billion).
-Write to Geraldine Amiel at firstname.lastname@example.org
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