Schneider Electric SA Lowers FY 2011 EBITDA Margin Guidance and Issues EBITDA Guidance in Line with Estimates

Schneider Electric SA announced that while it expects strong productivity, the combined effect of more negative mix on gross margin due to higher solutions growth over products and less favorable geographical mix, and stronger than expected inflationary pressure in new economies, is anticipated to reduce its near term profitability by 0.5 to 0.7 point compared to previous EBITA margin guidance of about 15%. In addition, given the reduced visibility of the near-term economic outlook, the Group is accelerating the restructuring actions to drive higher cost efficiency going forward and will book additional restructuring charges impacting the margin by a further 0.2 to 0.4 point. As a result, Schneider Electric now targets a full-year EBITDA margin of about 14% before acquisition and integration costs and consolidation impact of 2011 acquisitions. Nonetheless, 2011 is expected to be another year of growth of the EBITA before acquisition costs and restructuring. According to I/B/E/S/ Estimates analysts on average are expecting the Company to report for 2011 EBITDA of EUR 3,756.27 million. For the fiscal year 2010 the Company reported EBITDA of EUR 3,172.00 million.