The hottest Schneider Electric announced its third

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Schneider Electric announced its third quarter results

organic sales increased by 12% in the third quarter of 2010

stable growth and integration of Areva power distribution pushed the sales in the first nine months to a record high of 14billion euros

industry and it continued to expand at a double-digit growth rate

improvements in the power and building business areas have confirmed that the new economy grew by 16%, Strong rebound in Western Europe

the integration of Areva power distribution is proceeding in an orderly manner according to the target

the annual surplus 1 target has risen to the range of 15.5% to 16%

Schneider Electric recently reported on October 26, 2010 that its sales in the third quarter were 5.446 billion euros, with a 37.9% increase in sales based on floating structure and exchange rate, and an 11.9% increase in year-on-year sales. The impact of working days is not obvious in this quarter

the sales of various businesses are as follows:

Jean Pascal tricoire, President and CEO of the company, commented that this is another quarter of strong growth. Industrial and it businesses continue to lead our sales growth. Improvements in the electricity and building businesses, which are in the late cycle, have also been recognized, thanks in part to the success of energy efficiency and renewable energy projects

although non residential construction and energy and infrastructure are still at a low level in many mature countries, all our end markets have now passed the trough stage. We will continue to promote productivity improvement in accordance with the plan to save 1.6 billion euros by 2011, so as to adapt costs to business levels. This quarter is also the first quarter after Areva's distribution business was merged. Its integration is on schedule. The integration of this business with our original medium voltage business will provide our customers with a stronger value proposition in terms of technology, geographical coverage and solution capabilities. In view of our recent performance, we now expect the organic growth rate to reach a high single digit growth rate in the second half of the year. Therefore, we also raised our annual EBITA target to 15.5% to 16% excluding the impact of restructuring costs and the merger of Areva's distribution business

1 EBITA surplus without deducting Areva distribution restructuring costs and merger impact

ebita: EBIT before deducting depreciation and impairment of intangible assets and goodwill impairment of procurement accounting

2 for the integration from June to September (4 months), please refer to the section on the impact of consolidation

organic growth of various businesses

sales of power (accounting for 49% of the group's sales) in the third quarter increased by 8.0% year-on-year compared with the previous period. With the stability of non residential construction, the medium voltage business began to rebound from the trough in the second quarter. The growth of low-voltage products accelerated in this quarter, which was mainly driven by the good momentum of emerging economies, strong industrial demand and the bottom recovery of the construction market in Western Europe. The rebound of the solution business is slightly behind that of the product business, but the stable growth of oil and gas, metallurgy and mining projects in Eastern Europe and South America and the success of renewable energy projects in Europe as a whole are still important to the solution business. You will find that many materials have existed in the early days of automobile invention - leather, wood, metal and cloth

in terms of power business, Western Europe has achieved solid growth, partly thanks to easier comparison, in addition to the improvement of medium voltage business and the increase in the number of solar farm projects. With Southeast Asia, India and the Pacific catching up with China, the Asia Pacific region has shown an overall strong momentum. South America improved further in this quarter, reflecting good overall economic fundamentals. Russia continued to rebound strongly, while other Eastern European countries gradually recovered from severe weakness that lasted for several quarters. The business evaluation in North America was slightly negative

Areva power distribution (accounting for 12% of the group's sales) had an impact on sales that was completely within the scope of the expected impact by June 2011, so it will be discussed in the consolidated impact section

Industrial (accounting for 17% of the group's sales) continued to achieve an impressive growth of +27.5%, which was mainly driven by the strong demand of OEM (equipment manufacturer) for products and solutions (somachine release 2, success in packaging and HVAC). Although the performance of automation end users is not strong enough, it is still supported by the good momentum in the mining and water sectors

although sales still benefit from some expected orders due to component shortages, the supply tension is gradually easing. By region, the trend of mature economies is as strong as that of emerging economies, and sales in Western Europe and North America are accelerating compared with the second quarter. The next few quarters will be measured based on a more rigorous comparison base

it (accounting for 13% of the group's sales) sales increased by 11.9% compared with the same period last year, with positive performance in all businesses and regions. The small systems business for home and corporate networks continued to perform strongly, thanks to the good momentum in most regions and the launch of new generation products

the growth of large-scale system solutions has further accelerated. Several large-scale projects have been delivered in Asia Pacific and Eastern Europe, and strong growth has been achieved in services. By region, Western Europe regained growth due to improved market conditions. The Asia Pacific region still faces a shortage of some components

North America grew at a double-digit rate for the third consecutive quarter. The rebound in Russia and the strength of Latin America continue to support business growth in the rest of the world. It business will face a more severe comparison base in the fourth quarter, because this is the first business to resume growth in the fourth quarter of last year

the organic sales of buildings (accounting for 7% of the group's sales) increased by 4.6% in the third quarter, an improvement over the second quarter, mainly driven by the strong demand for solution business in the installation of basic services and advanced services by the energy efficiency projects in North America and Northern Europe. Demand in emerging economies is growing, especially for security products

cst (accounting for 2% of the group's sales) sales increased by 22.5% year-on-year. This business continues to benefit from the recovery of transportation markets in Europe and North America and better industrial demand in the world, especially in emerging economies. The aerospace sector reached its lowest point in this quarter and resumed positive growth

organic growth in all regions 1

Western Europe (accounting for 33% of the group's sales in the third quarter) increased by 11%, which was partly due to the gradual improvement of the low comparative base in the previous period. Germany and Italy University 5. Transmission system: servo electromechanical control system ball screw transmission is obviously in the forefront, because these two countries have rapid growth in OEM business, and Italy also benefits from the development of its solar energy projects. France remained stable, while Spain and Scandinavia were stable

North America (accounting for 24% of the group) achieved a 6% growth, mainly due to the growth of industrial and it businesses, while the power business, which has a greater relationship with construction, is still dragging down the overall performance

1 from 2010, the regional report will be given according to the sales volume of the destination. There may be some differences compared with the 2009 financial report based on the sales volume of the invoicing country

as a static part, 2 note that compared with the 2009 annual report, the rest of the world includes Eastern Europe in addition to the Middle East, Africa and South America, which is consistent with the new institutional setting of Schneider Electric

Asia Pacific region (accounting for 25% of the group) increased by 20%, although the comparison base of China business is more challenging. The business in Southeast Asian countries has been improved driven by Indonesia, Singapore and the Philippines

sales in the rest of the world (18% of the group) increased steadily by 11% in this quarter. All regions achieved growth, with South America and Eastern Europe leading the way. Africa's performance remains weak, but it is still rising again

sales in emerging economies increased by 16% year-on-year in the third quarter, accounting for 37% of reported sales (including Areva power distribution) in the first nine months of 2010

merger impact - in the first quarter of Areva distribution integration, the acquisition contributed +16.8% growth rate, that is, achieved sales of 663million euros, which mainly involves the integration of Areva distribution business. The rest mainly includes the role of SCADA group and cimac in the acquisition of small and medium-sized equipment in the industrial and building fields

this quarter is the first quarter of Areva distribution integration. It generated sales of 629million euros from June to September, which was fully consolidated during the quarter. The Department will soon merge with Schneider Electric's current medium voltage business to become a new business unit, called the energy department, which is operating normally for the goal of sales reaching 1.1 billion euros between June and December. Since 2011, it will be included in the report under the energy business

considering that the deadline of June 7 makes the preparation of the business financial statements on the date of acquisition inconsistent with the release period of Schneider Electric's interim financial statements, the group has included Areva power distribution's four month sales in this quarter. The Department achieved sales of 459 million euros in the three-month period from July to September, which was relatively stable compared with the same period last year

foreign exchange impact

foreign exchange fluctuations increased sales by 325 million euros in the third quarter, which was mainly the result of the appreciation of most currencies, especially the US dollar, RMB and Australian dollar, relative to the euro


in view of the sales performance in the third quarter, Schneider Electric now expects the organic growth rate in the second half of the year to reach a high single digit growth rate. Although the improvement of power and building business is confirmed, the industrial and it business will face a higher comparison base in the next quarter. Businesses in emerging economies should continue to develop very actively, but they will also encounter the problem of a high comparative base. The recovery of mature markets, especially in North America, may still be relatively slow

as a result, Schneider Electric raised its annual EBITA target of 15.5% excluding the combined impact of restructuring costs and Areva power distribution, and glycine can be directly excreted from the body through urine or metabolized into carbon dioxide and water% to 16%

Areva power distribution has been on track. Its goal is to increase the group's sales by about 1.1 billion euros within the seven months of the merger in 2010, and achieve a corresponding EBITA surplus of about 5%, calculated without deducting the integration and spin off costs

the sales information of the third quarter of 2010 can be obtained from the website

2010 annual operating results and fourth quarter sales will be released on February 17, 2011

appendix details of business conditions

sales in the third quarter of 2010 by business are as follows:

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