Schneider Electric Beat 2018 Targets, Launches Buyback

   By Cristina Roca 
 

Schneider Electric SE (SU.FR) said Thursday that its net profit rose to a new record after it beat its 2018 guidance, and that it launched a new share-buyback program.

The French energy-management company said net profit for the year was 2.33 billion euros ($2.63 billion), up 8.6% from EUR2.15 billion in 2017. Analysts had seen profit rising to EUR2.37 billion, according to a consensus estimate provided by FactSet.

Schneider's fourth-quarter revenue rose 5.4% to EUR7.03 billion thanks to organic growth in all regions.

Revenue for the year totaled EUR25.72 billion, broadly in line with analysts' expectations of EUR25.69 billion, according to a consensus estimate provided by FactSet.

Revenue grew organically by 6.6% in 2018, beating Schneider's guidance, issued in October, for 6% organic sales growth this year. Schneider in October raised its guidance from a previous 5%-6% range.

Schneider posted adjusted earnings before interest, taxes and amortization of EUR3.87 billion for the year, representing 10% organic growth. This result beats Schneider's outlook for 2018, which it also raised in October to 8%-9% from its initial target of 7%-8%.

The company proposed a dividend of EUR2.35 a share, up from EUR2.20 for the year previous.

Schneider is initiating a new EUR1.5 billion-EUR2 billion share buyback program over the 2019-2021 period, it said, after completing a EUR1 billion share buyback program announced in 2017.

The French company said that for 2019, it is targeting organic Ebita growth of between 4% and 7%. It also said it sees its revenue growing organically by 3%-5%.

Schneider backed its mid-term goal of 3%-6% organic revenue growth on average. Over the next three years, Schneider will continue to focus on profitability and improving its Ebita margin, it said.

Write to Cristina Roca at [e-mail]; @_cristinaroca

(END) Dow Jones Newswires

February 14, 2019 01:31 ET (06:31 GMT)

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