Schneider Electric Upgrades 2020 Guidance

   By Giulia Petroni 
 

Schneider Electric SE said Thursday that it was raising its full-year guidance following a positive third-quarter performance.

The French energy-management company said quarterly revenue came in at 6.46 billion euros ($7.66 billion), down 2.8% from the previous-year period. On an organic basis, revenue rose 1.3%.

The energy-management division registered organic growth of 2.5% on year, while the industrial automation business posted a 2.5% organic decline.

"We saw a progressive recovery across the business throughout the quarter, which was boosted, in part, by pent-up demand from past orders and re-stocking in our distribution channels," Chief Executive Jean-Pascal Tricoire said.

The company said uncertainties persist around fourth-quarter results due to a rise in coronavirus cases across geographies.

Schneider Electric raised its guidance for the full year, saying it now expects a revenue decline of between 5% to 7% organically from a previously forecast decline of 7% to 10%. The adjusted earnings before interest, taxes and amortization margin is expected to be around 15.1% and 15.4%.

The company reiterated its 2022 adjusted Ebita margin target of around 17%.

It also said it remains committed to its portfolio optimization program, but expects the timeline to be delayed by around one year due to the Covid-19 crisis.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

October 22, 2020 02:04 ET (06:04 GMT)

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