Schneider Electric releases 2nd quarter financial results

schneider logoSchneider Electric, the French energy and power company, has released its 2nd quarter figures for 2015, including revenues, organic growth, net income, and 2015 half-year totals.  The period ended on June 30th.

A 9.8% year-to-date increase in revenues was reported, but this included a 0.9% decrease in organic growth. Net income was down 12%, but up 4% when adjusted.

Despite being down almost a full percentage point from this date a year ago, organic growth saw a gain during the second quarter. Schneider reports that second quarter revenues were up 0.1% organically, and 11.7% on a reported basis. Organic growth is defined as “expansion of a firm’s operations from its own internally generated resources, without resorting to borrowing or acquisition of other firms.”

The organic growth revenues are divided into four business categories (Buildings & Partner, Industry, Infrastructure, and IT) as well as four geographic sectors (Western Europe, Asia-Pacific, North America, Rest of the World). Within these subdivisions, IT saw the most significant percentage increase at 4.8%, while Industry suffered at -4.2%.

Geographically, Chairman/CEO Jean-Pascal Tricoire highlighted the performance of the Western Europe sector, which improved by a full 2%,  in his comments in the Investor Relations section of the company Web site: “In the first half we focus on deploying our strategy with ‘Schneider is On’ in an environment where headwinds from O&G and China are higher than expected. These headwinds, along with a high base of comparison for Invensys, particularly impact our Industry business, which drags down the group performance. However we see solid growth in the U.S. construction market, improvements in Western Europe, good progress in adapting costs and in achieving Invensys synergies.”

In the second half of the year, according to Tricoire, the company expects “continued growth in the U.S. construction market.”

Schneider has locations in 190 countries.

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