French energy-management and automation group, Schneider Electric, has announced its third-quarter revenue, which came in just below analysts’ expectations. Despite this, the company remains confident in its full-year outlook.
During the three-month period, Schneider Electric generated 8.79 billion euros ($9.29 billion) in revenue, compared to EUR8.78 billion in the previous year. This represents a 0.1% increase on a reported basis and an impressive 11.5% increase on an organic basis.
While analysts had anticipated revenue of EUR8.93 billion, Schneider Electric’s achieved figure slightly fell short of their predictions.
The company attributes its positive results to the effective execution of its order backlog and strong demand in the end-market.
However, it is important to note that Schneider Electric did face some challenges, including a EUR258 million impact due to the disposal of its Russia operations, as well as various smaller acquisitions, disposals, and unfavorable currency-exchange effects.
Breaking down the regional performance, North America, representing 35% of the group’s sales, witnessed a 6.5% growth on a reported basis. Meanwhile, Western Europe, which accounts for 23% of quarterly revenue, experienced a 3.7% growth.
Although Schneider Electric acknowledges signs of weaker demand for discrete automation in China and Western Europe expected in the fourth quarter, the company remains committed to achieving its 2023 targets.
In summary, Schneider Electric has reaffirmed its full-year outlook despite reporting flattish third-quarter revenue. The company’s success can be attributed to efficient order execution and strong end-market demand. Despite challenges and signs of potential sluggishness in certain regions, Schneider Electric remains focused on achieving its long-term goals.