Schneider Electric raises 2021 forecasts on strong demand, Q1 sales beat

[PARIS] French electrical equipment group Schneider Electric on Tuesday raised its full-year outlook, buoyed by first-quarter sales that beat analysts' estimates on strong demand for its data centre and building energy management offerings.

Schneider, which sells products ranging from electrical car chargers to industrial robotics, now targets 2021 adjusted earnings before interest, taxes and amortisation (EBITA) to rise 14 per cent-20 per cent organically, with revenues likely to gain 8 per cent-11 per cent.

It had previously forecast an adjusted EBITA of 9 per cent-15 per cent higher for this year, from revenues up 5 per cent-8 per cent.

"The uncertainty surrounding the rest of 2021 remains, with recent uptick of Covid-19 contagion in specific countries, and potential global supply-chain pressures," Chief Executive Officer Jean-Pascal Tricoire said in a statement.

He added that the upgraded guidance factored in these uncertainties, as well as "the strong underlying demand trends witnessed in Q1." Boosted by particularly strong growth in China as well as robust demand for its data centre and building energy management offerings, first quarter sales jumped 13.5 per cent organically to US$7.88 billion.

Analysts polled by the company had forecast revenues up 8.2 per cent to 6.22 billion euros for the quarter.

Schneider said that infrastructure demand was stronger in the United States, boosted by recent weather-related issues and government efforts to improve grid stability.

As part of a disposals plan, which it had put on hold in 2020, Schneider said it had agreed to sell its Northern European cable support business to the Storskogen Group, bringing cumulative revenues from the scheme to 700 million euros.

REUTERS