Schneider unveils record profits

26 February 2007

Schneider Electric has said it plans to increase average organic sales growth over the next two years, after it reported strong financial results for 2006. The French company revealed net income of €1.309 billion for 2006, a 32% rise on the previous year.

Operating income rose 28%, to €2.001 billion, and sales rose 18% to €13.73 billion.

Jean-Pascal Tricoire, chairman of the management board and CEO, said: “Schneider Electric has recorded strong sales and earnings growth for the third year in a row. Our growth strategy and new² company programme have allowed us to generate organic growth of 9% per year over the past three years, to achieve a record operating margin of 14.6% in 2006 and to double our operating income between 2003 and 2006.

“We are now half way through our new² company programme and fully confident in our ability to continue improving performance as of 2007 and to meet more ambitious targets.”

Acquisitions contributed €800 million to sales. All regions and businesses with Schneider reported growth in operating income.

Commenting on the acquisition of APC, Tricoire said: “We have created a Critical Power & Cooling Services Business Unit that combines APC’s resources with those of MGE UPS Systems. The Business unit is already operational, and its people are ready for action, under a single management team. We confirm the targets set when the transaction was announced.”


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