Schneider Electric – Company Performance Since January 2017
Posted on: October 6, 2017, by : Alan Ayyash

With headquarter in Rueil-Malmaison; Schneider Electric is a multinational corporation having its roots in France. The core expertise of the company is its unparalleled energy management and automation solutions, right from hardware, software, to services. With listing in top 500 fortune companies, Schneider Electric, over the years has expanded its business horizons to several parts of the world. To bind the success of Schneider Electric into a figure, €25 billion was official revenue of the company for the financial year 2016.

A Brief Insight on Schneider Electric

This French firm is also traded on the Euro next Exchange, and a part of the Euro Stoxx 50 stock market index. Schneider Electric is a parent body to a number of global companies,  such as the Square D, Pelco, APC, and the Australian company Clipsal, which is worldwide famous for its Clipsal Saturn range of electrical accessories. As per the last update, published by the company in the year 2016, Schneider Electric hoard 144,000 talented flocks in over 100 nations worldwide, and 20,000 patents (both active and in applications).

Tracing the Footprints of the Company

Before taking a massive plunge into the electricity and energy management market, the origins of the company take us back to the era of the 19th and 20th century, when Schneider-Creusot factories were unearthing iron, steel, and armaments. From there the company has grown to become an industry leader in energy automation and management domain, owing to the great vision of Schneider brothers, Adolphe and Joseph-Eugene Schneider. The approach of innovation and acquisition ensured that the company remain cut-above their global rivalries.

2002- A Year Which Set the Tone For Company’s Transformation

In the wake of digital bridging of the planet earth, the year 2002 brought about a great transformation in company’s operational model.  Schneider Electric embraced the  three-pronged model to pave way for a bright future, which is drive growth, diversify risk and promote longevity:

After that:

Schneider Electric ensured a harmonised approach to its strategic end markets.

Elevate the quality of its legal portfolio by virtue of adjacent and synergistic businesses.

Analyse the future market scope and advance to address them. 

The core strategy of the company was to innovative and acquire, adhering it, Schneider Electric ate away a number of companies in both developed and developed democracies.

Company’s Performance Post-2017

Schneider Electric performed exceptionally well in the first half of 2017. Even though this year saw a number of things going against the company, future trends and uncertainties, the company managed a positive growth slope.

Revenue Growth Figures-What They Read?

Reported H1 growth: +3.7%

H1 organic growth: +2.7%

H1 org. growth in Building, IT, Industry: +4.1%

Sustained Profit Momentum

H1 adj. EBITA margin: 14.1%

H1 adj. EBITA growth: +8%

H1 adj. EBITA margin: +60bps

Strong Earnings & Cash

Net Income Growth:  +18%

Free Cash Flow: +14%

The bottom line of the year 2017 for Schneider Electric is, big wins in Machine, Power, Data Center sector. Additionally, they had the highest H1 industrial in the last 5 years.