Schneider Electric able to play 'active role' in sector consolidation - UPDATE |
|
|
Published
:
Wed, 21 Feb 2007 12:26
|
(Updating with quotes, comment on integration of APC)PARIS (AFX) - Schneider Electric has the capacity to play an 'active role' in further consolidation of the electrical equipment industry, said chief executive Jean-Pascal Tricoire.The company made a series of acquisitions last year, concluding with the 6.1 bln usd buy of American Power Conversion, announced in October.'We have the capacity to play an active role in the concentration of the sector, a sector that remains fragmented on a global scale,' Tricoire said during a conference call following the group's release of 2006 results this morning.He said revenues from electrical equipment makers worldwide are about 200 bln eur, compared to the 13.7 bln eur of revenue generated by Schneider on its own last year.'We have all that we need from a management and financial point of view to be a key player in this consolidation,' Tricoire said.He also said that Schneider is ahead of schedule with its integration of APC, and Finance Director Pierre Bouchut said that with a cost of capital at 5.5 pct, Schneider is poised to add 11.5 eur of value to its share price.The company is also proceeding with the sale of several businesses, required by the European Commission as part of its approval of the APC buy. The divestments will be completed within six months, Tricoire said.He also said that Schneider is being have ry cautious' with regards to costs for copper and other raw material costs, which should again be 'significant' in 2007.'We are telling our teams that 'prices must be raised in order to compensate for the increase in raw material prices',' Tricoire said. The company has incorporated the prospect of high material costs into its growth forecasts, he added.paris@afxnews.comafp/js/gp/js/jlwCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
|
|
|
|
Print this Story
Schneider Electric able to play 'active role' in sector consolidation - CEO 