Schneider Electric Posts Record Profit for 2017 -- Update

Adds information on acquisitions and quote from Deputy CEO

 
    By Nathan Allen 
 

Schneider Electric SE (SU.FR) said Thursday that it posted a record net profit in 2017, driven by accelerating sales and increases in productivity as well as efficiency.

Net profit at the French supplier of electrical equipment rose 23% to 2.15 billion euros ($2.66 billion) in 2017, from EUR1.75 billion in 2016, the company said.

A consensus compiled by FactSet had pegged net income at EUR2.12 billion

Revenue was EUR24.74 billion, compared with a restated figure of EUR24.46 billion a year earlier, and narrowly missing a FactSet-compiled consensus of EUR24.78 billion.

Fourth-quarter revenue fell slightly to EUR6.67 billion, due in part to a EUR341-million foreign-exchange hit, which offset the positive impact of acquisitions, Schneider said.

Acquisitions and disposals contributed around EUR16 million to quarterly revenue, driven mainly by the consolidation of Asco Power Technologies, which Schneider took over in July, according to the company's annual results statement.

Deputy Chief Executive Emmanuel Babeau said Schneider is unlikely to pursue further large acquisitions in 2018, as it has largely filled a gap in its software-development capacity through the reverse takeover of Aveva Group PLC (AVV.LN) and the acquisition of French developer IGE + XAO SA (IGE.FR).

Mr. Babeau also said that the company isn't considering divesting or spinning off any of its business units at present.

"The lesson from last year is the strength of our integrated portfolio," he said in an interview.

Analysts have suggested that the company could sell off its medium-voltage division, which has fairly low margins, or spin off its more profitable automation and low-voltage units.

Schneider's board will propose a dividend of EUR2.20 a share, up 8% on year.

Write to Nathan Allen at [e-mail]

(END) Dow Jones Newswires

February 15, 2018 04:14 ET (09:14 GMT)

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