Schneider Affirms 2019 View, Plans to Increase Long-Term Investment

By Patrick Costello

Schneider Electric SE (SU.FR) reaffirmed Wednesday its 2019 guidance and medium-term growth targets at its capital markets day, and said that it plans to increase investment to improve long-term growth.

The French electrical-equipment provider backed its 2019 target and its mid-term goal of 3% to 6% organic revenue growth on average. In February, the company said it aimed to generate organic earnings before interest, taxes, depreciation and amortization growth of between 4% and 7% for 2019.

Schneider also reaffirmed its aim to expand its adjusted Ebitda margin over the next three years by improving it by roughly 200 basis points at constant exchange rates. The company is targeting EUR1.1 billion ($1.3 billion) of industrial productivity over this timeframe, it said.

Over the next four to five years, Schneider said it also plans to increase investment in areas such as research and development, marketing and sales force size.

The cash investment here is expected to bring average annual restructuring costs over the next four years to a level between EUR200 million and EUR250 million, Schneider said.

Write to Patrick Costello at [e-mail].

(END) Dow Jones Newswires

June 26, 2019 02:18 ET (06:18 GMT)

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