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Schneider warns on 2013 results after forex hits Q3
October 25, 2013 / 5:38 AM / in 4 years

Schneider warns on 2013 results after forex hits Q3

PARIS, Oct 25 (Reuters) - France’s Schneider Electric posted slower quarterly organic growth and lowered its full-year forecasts on Friday, blaming adverse currency moves, a weak Europe and timing uncertainties over the integration of Invensys.

The electrical equipment maker reported third-quarter sales of 5.9 billion euros ($8.1 billion), down 3.2 percent from a year earlier. Organic revenue rose 0.7 percent, a slowdown from 2.6 percent in the second quarter.

For the full year, Schneider said it now expected stable-to-limited organic revenue growth. In July, it had forecast low single-digit percentage growth.

“The adverse evolution of foreign currencies, especially in Asia-Pacific ... is expected to have a negative impact” of 0.3 to 0.5 percentage points on its adjusted EBITA (earnings before interest, tax and amortisation) margin at current rates, Schneider said.

The company, whose products help utilities distribute electricity and which makes automation systems for the car and water treatment industries, earlier this year agreed the $5.2 billion takeover of UK engineer Invensys.

“Timeline uncertainties imply an impact on results starting in 2013 or in 2014,” Schneider said, referring to the acquisition.

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