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Schneider Electric sees bigger sales, profit in 2021

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French electrical equipment group Schneider Electric said on Thursday it expects its revenues and core profit margin to grow this year, after a second-half rebound helped it beat market expectations for 2020.

The Paris-based conglomerate, which sells products ranging from electrical car chargers to industrial robotics, said it would now focus on integrating its recent acquisitions and creating synergies.

For 2021, Schneider forecast a continued recovery in Western Europe and strong growth in its other regions supported by robust demand for data centres.

While annual revenues fell overall, the company posted growth in its software and services business in the fourth quarter, boosted by several large contract renewals for its UK subsidiary Aveva.

The firm forecast 2021 adjusted earnings before interest, tax and amortisation (EBITA) to be up between 9% and 15% organically, on the back of revenues gaining between 5% and 8%.

This would bring its core profit margin to between 16.1% and 16.5% in 2021, up from the better-than-hoped-for 15.6% from revenues of 25.16 billion euros ($30.50 billion) in 2020.

Analysts had forecast a full-year adjusted EBITA margin of 15.3% and full-year revenues of 24.98 billion euros.

Schneider proposed a dividend of 2.60 euros per share for 2020.

($1 = 0.8249 euros)

Photo: EPA/MAURITZ ANTIN

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