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Research Tree provides access to ongoing research coverage, media content and regulatory news on SCHNEIDER ELECTRIC SE. We currently have 6 research reports from 1 professional analysts.
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SCHNEIDER ELECTRIC SE
SCHNEIDER ELECTRIC SE
Flat Q3 16 revenue, limited growth ahead
27 Oct 16
Schneider reported its Q3 16 revenue figures and laid out its strategic plan at its investors day. Main facts: Q3 16 revenues reached €6.1bn corresponding to an organic growth of -1.7% and about flat excluding selectivity & working day impacts. China continues to improve, turning positive in Q3 while the Middle East’s decline impacted the group’s growth by -1.3pts. North America’s revenues were slightly positive and Western Europe’s was flat. Services continue to grow mid single-digit driven by Building & IT. FY2016 targets reaffirmed. Schneider now targets average organic growth of around 3% over the next three years excluding infrastructure. A targeted +20-50bp average organic improvement in the adjusted EBITA margin over the next three years, while increasing the support function’s cost saving targets for 2015-17 to €700-800m.
Strong execution amid still difficult markets
28 Jul 16
Schneider reported its H1 16 results. Main facts: Revenue reached €11.85bn in H1 16, a 7.8% reported decrease but corresponding to a 0.1% organic decrease. For Q2 16 alone, revenue was €6.21bn, a 9.4% reported decrease and 0.5% organic decrease. The EBITA margin reached 13.3% (€1,570m), a 70bp improvement over last year (12.5%) mainly due to cost reduction. Net profit was €809m, a +13% increase yoy leading to a strong free cash flow generation of €446m (versus €216m last year). The company revised upward its full-year margin target by +60bp and a +90bp improvement on the adjusted EBITA margin before FX (versus previously 20-60bp).
Situation looks under control
21 Apr 16
Main facts: Q1 16 revenue at €5.77bn (-3.7% yoy) came in above market expectations of €5.65bn. Organic growth was +0.1% yoy as the negative FX impact was €-144m, or -2.4%, primarily due to the depreciation of several new economies’ currencies versus the euro. The perimeter impact was €-85m corresponding to -1.4% on Q1 16 revenue. The company confirmed its FY16 guidance of organic revenue growth to be flat to down low single-digit, impacted by the group’s higher selectivity on project activities and +20-60bp on the adjusted EBITA margin before FX. The negative FX impact on margins is expected to be between -40bp to -50bp at current rates.
Rather reassuring on many fronts
17 Feb 16
The company reported FY15 results which are overall slightly above market expectations and rather reassuring. Revenue reached €26.6bn, corresponding to a -1% yoy organic change, but was stable excluding the negative impact from the change in the fiscal year closing in Invensys and the ramping down of the Chinese nuclear project. The adjusted EBITA margin was 13.7% slightly below last year (but stable ex. FX), in line with company guidance while the adj.EPS reached €3.73, bang in line with our forecast. The Q4 15 revenue was down 0.6% organically including +2% in building & partners helped by strong growth in the US construction market while the weak spot was Industry -4.3% yoy, negatively impacted by Oil&Gas in the US. China's operations continued to be under pressure as the Asia Pacific region decreased 6% but this included growth in India and South-East Asia. For 2016, Schneider sees continued growth in Western Europe and the construction market in the US, offset by difficult markets in China but to a lesser degree than in 2015, and mixed new economies. The company expects a flat to down low single-digit organic growth in 2016 coupled with a 20-60bp improvement in EBITA margins excluding FX impacts estimated between -40 to -50bp at current rates. In other words, a flat year for EPS.
Second "limited" warning in a row as China weighs
29 Oct 15
Schneider reported its Q3 15 revenue of €6,594m, +4.9% reported growth, but corresponding to -1.6% organic growth (-1.1% working day adjusted). The Industry segment decreased 4.6% yoy on an organic basis, reflecting weak industrial investments, a further slowdown in China while North America declined due to weaker oil & gas and IT investments. Other segments (IT, Infrastructure, Buildings & Partner) were flat to slightly negative, also impacted by China. By region, Western Europe stabilised (-1% organic) while Asia Pacific (-5%) weakened due to China and North America (-4%) due to weak Oil & Gas and IT segments coupled with a strong dollar impact. ROW grew +9% due to continued infrastructure investments in the Middle East and project execution in Africa that drove strong growth in the region. Overall, Q3 15 revenue was up slightly outside China. The impact of FX fluctuations was +€420m, or +6.6% during the quarter, mainly due to the US dollar and Chinese yuan against the euro. However, given the euro’s appreciation against the US dollar, Chinese yuan, and several new economies’ currencies since the summer, Schneider now expects, at current rates, the positive FX impact on FY2015 revenues to be reduced by c. €0.2bn to c. €1.8bn with a c.-20bps impact on the 2015 adjusted EBITA margin rate compared to a neutral impact estimated previously. Schneider revised its FY15 targets down: slightly negative organic growth in revenue (vs "an around flat organic growth") and a moderate decline in the EBITA margin vs 2014 (vs a flat to moderate decline) is now expected.
Limited warning amidst weak China and energy sector
29 Jul 15
The company reported a weaker operating margin than last year and lowered its FY15 guidance. In H1, revenues reached €12.48bn corresponding to a +9.8% increase yoy and a 0.9% organic decline, and was flat excluding Invensys. For Q2 on its own, organic growth was a mere 0.1% but improved sequentially (-2% yoy in Q1). The company cited the challenging environment in China (Asia Pacific area with a 5% decline yoy in H1 and Q2) and the Oil & Gas sector impacting negatively Invensys and the North America area (1% organic decline in H1 and 0% in Q2). The Industry segment (21% of Q2 revenues) was down -4.2% yoy, temporarily impacted by the Invensys integration. The adjusted EBITA margin was weaker at 12.5% vs 12.9% in H1 14. Therefore the company now targets an around flat organic growth in revenues (vs low single-digit organic growth) coupled with a flat to moderate yoy decline in the adjusted EBITA margin (we understand between 13.5% and 13.9% versus a 14% to 14.5% target, corresponding roughly to 50bp lower than expected.
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.