Schneider Electric Posts Lower Profit But Higher Revenue, Upgrades Guidance — Update

By Nina Kienle

Schneider Electric posted lower net profit but higher revenue for the first half and upgraded its guidance.

The French group said Wednesday that net profit for the first six months of the year fell to 1.88 billion euros ($2.03 billion) from EUR2.02 billion the same prior-year period. Revenue amounted to EUR18.17 billion, up 3.1%.

Adjusted earnings before interest, taxes and amortization rose 6.6% to EUR3.38 billion.

Analysts saw net profit, revenue and adjusted Ebita at EUR2.09 billion, EUR18.11 billion and EUR3.24 billion, respectively, according to consensus estimates provided by the company.

Systems sales grew 16% on an organic basis, with double-digit organic sales growth in energy management supported by continued strong demand, including in data-center and infrastructure end-markets. In industrial automation, system sales into process and hybrid markets delivered solid growth, the company said.

Good activity was seen in several countries across North America, Asia Pacific and the rest of the world region. The rapid development of generative artificial intelligence is adding to increased demand among customers worldwide, the company said.

North America made up 37% of second-quarter revenue, growing 13.3% organically on year, with energy management in the region growing 15.5% organically.

At 0732 GMT, shares trade 3.9% higher at EUR224.35.

"We are uniquely positioned and continue to invest into materializing on the megatrends of digitization & AI and energy transition," Chief Executive Peter Herweck said.

For the full year, the company upgraded its estimates, now expecting adjusted Ebita growth between 9% and 13% organically compared with previous guidance of 8% to 12%. Schneider Electric still targets organic revenue growth between 6% and 8%, it said.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

July 31, 2024 04:00 ET (08:00 GMT)

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