Schneider Affirms 2019 View, Plans to Increase Long-Term Investment
June 26 2019 - 2:33AM
Dow Jones News
By Patrick Costello
Schneider Electric SE (SU.FR) reaffirmed Wednesday its 2019
guidance and medium-term growth targets at its capital markets day,
and said that it plans to increase investment to improve long-term
growth.
The French electrical-equipment provider backed its 2019 target
and its mid-term goal of 3% to 6% organic revenue growth on
average. In February, the company said it aimed to generate organic
earnings before interest, taxes, depreciation and amortization
growth of between 4% and 7% for 2019.
Schneider also reaffirmed its aim to expand its adjusted Ebitda
margin over the next three years by improving it by roughly 200
basis points at constant exchange rates. The company is targeting
EUR1.1 billion ($1.3 billion) of industrial productivity over this
timeframe, it said.
Over the next four to five years, Schneider said it also plans
to increase investment in areas such as research and development,
marketing and sales force size.
The cash investment here is expected to bring average annual
restructuring costs over the next four years to a level between
EUR200 million and EUR250 million, Schneider said.
Write to Patrick Costello at patrick.costello@dowjones.com.
(END) Dow Jones Newswires
June 26, 2019 02:18 ET (06:18 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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