The chief executive of industry group, explains how the deployment of its strategy has helped revive growth.
LE FIGARO. – How was the beginning of the year for Schneider?
JEAN-PASCAL TRICOIRE. – We returned to growth of our business in the first quarter and the trend has accelerated sharply in the second with an increase of over 10%. Our total revenues grew 6.4% in the first half. The acceleration is even stronger in terms of profitability. Our operating income represents 15.2% of sales is up 3.6 percentage points a year. Our net income has more than doubled.We note therefore significantly our growth objectives and margin for 2010.
What were the factors driving this growth?
This performance is clearly the implementation of our strategy and deployment of our program One Schneider. First, we are reaping the benefits of diversifying our end markets and the strong rebound of two growth markets on which we have been able to take strong positions. It is the automation of machines and processes, very strong recovery with growth of over 20%, and the computer. The building and electrical distribution later in the cycle, are now beginning their recovery.
Secondly, our growth is driven by our strong presence in emerging economies.Thirdly, our growth in the smart grid (electricity distribution networks intelligent, Ed) is a strong accelerator solutions in renewable energy, including solar, intelligent management of energy in buildings, factories, homes, power grids, which we will soon add support infrastructure for electric cars. We propose new technologies and new services to our clients to improve their energy efficiency.
What has really changed in Schneider?
In summary, I would say we've turned a group of several brands, structured products, a Schneider Electric, which provides complete solutions to its customers. This change is radical.The teams work together more closely and we respond to the expectations of our customers.
This recovery is also strong in all markets?
We are growing all over the world, but in emerging countries the trend is most pronounced. The growth of new economies is 12 points higher than those of countries "ripe". These countries now represent over 35% of our business.
The momentum will he continue in the second half of the year?
I am counting on a similar dynamic in the second half thanks to the continued deployment of our strategy.
So you dismiss the risk of a relapse of the economy?
I remain cautious of course, but we are calm. We learned and demonstrated during the crisis of 2009 that he had to be flexible and very demanding on the costs. Besides, we not relax our efforts to reduce costs.We are committed to reducing our costs by 1.6 billion euros in three years. Halfway through, we have already achieved more than half of the effort announced.
Will you increase your efforts to research and development?
We did not hit our investment in R & D during the crisis. They still represent about 5% of our turnover. Our business is growing, we will be able to invest even more.
Where are you from the integration of the distribution business of Areva T & D?
The transaction was formally completed last June 7. Nearly 11,000 people have joined us and the teams work together with great enthusiasm. This acquisition will bring about one billion euros in additional revenue in the second half, although with today's level of profitability below that of the group.Our challenge is to move up quickly.
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Small Ship, the Breton brand founded in 1932, came under Thai flag. Thai Union Frozen Products, the world number three canned fish, the fund has bought Trilantic Capital (formerly Lehman Brothers), who had acquired in 2006 for 425 million euros. The Asian group, listed on the Stock Exchange of Bangkok, has spent 680 million euros to afford the parent company of Small Ship, MW Brands, which last year produced 448 million euros in turnover and 82 million euros in operating profit. A profit doubled in three years for steady sales.
This is a new shift for Small Vessels, remained independent for fifty years before moving in 1981 into the bosom of Heinz ketchup maker. The leader of canned tuna in France may well grow out of France."Francophone markets as North Africa could generate interest," says David Sankowicz, Secretary General of MW Brands. With five production sites (Thailand, Vietnam, United States, Indonesia), the Thai group, offers significant opportunities to MW Brands. Europe will represent over one third of sales of Thai Union Frozen Products, the opportunity to double the number of vessels in its fleet. The group may sell in France for other types of canned fish.
Beginning last June, when Valeo has raised its outlook for the first semester, the group's management was expecting a turnover of 4.7 billion euros (+35% compared to the first six months of 2009) and was a operating margin of 6%, a level reached more than eight years.
This optimism came after the announcement of an activity in the first quarter, up 42% thanks to a rebound in production for the automotive sector at a very low cost structure and prices of raw materials declined. The shares had risen 7.5% while then 3.5% over the two sessions that followed the increase.
This Tuesday, July 27, Valeo announces half year results even better than expected turnover stood at 4.787 billion euros (+38%).The bottom line, it passes from red to green, with a profit of 168 million euros in the first six of 2010, against a loss of 213 million euros over the same period of 2009. And the operating margin reached 6.1% against 1.5% a year ago. This is the highest rate for ten years.
The growth of automobile production has been particularly dynamic in Asia (+43%) and especially China (45%). In the U.S., the increase reached 72%! Normal, after a first half of 2009 severely affected by the fall in production and the restructuring of some U.S. manufacturers.
In Europe, sales increased 23% despite the end devices scrappage and stabilization of registrations in the first half of 2010 (+0.2% versus the first half of 2009)."This phenomenon is due mainly to the effect removal of 2009 and the increase in exports outside Europe," the company said in its financial statement.
Now, Valeo expects operating margin for the year 2010 to a level "greater than 5%.
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Time is to digest the Paris Bourse. On Monday, the markets will deliver their verdict on the stress tests conducted on 91 European banks and published Friday after the stock market. Only seven institutions have failed, which means a respectable success rate of 92%. However, 17 banks post notes just averages. What a cool little enthusiasm. On Friday, Wall Street has shown optimistic about the outcome as evidenced by the fence in the green. But on Monday, Asian markets were more hesitant.
The response to stress tests should be the only source of entertainment markets on Monday. Indeed, any macroeconomic indicator is expected in Europe. In the U.S., the Commerce Department will release sales figures for new housing in the afternoon. As for American publications, not big ads not expected for this first day of the week.
As for currencies, the euro climbed slightly against the dollar in early morning trade: 0.05% to 1.2924 dollar.
Featured Banks
Who says interpretation of stress tests, said reaction of the banking sector. This morning at the Paris Bourse, the French banks BNP Paribas, Societe Generale, Credit Agricole, Dexia, or BPCE, parent company of Natixis, have all the attention of observers. For the Minister of Economy Christine Lagarde, have no fear: French banks have succeeded in "this difficult test with flying colors, with honors.
Sanofi-Aventis lowered its earnings forecast for 2010
Sanofi Aventis said Friday that the first generic version of the anticoagulant Lovenox was approved by the Food and Drug Administration (FDA) pay day advance.The supply of the generic, marketed by Sandoz in association with the American company Momenta began in the wake of the approval by the FDA. The news had tumbled 4.25% securities at the close Friday because the Lovenox was the second top-selling drug from Sanofi last year. In a statement, Sanofi-Aventis recalls his "reservations" about the approval by the FDA in regard to "patient safety".
The pharmaceutical group revises accordingly its earnings forecast downward, with "an evolution of the EPS of activities for 2010 of between 0% and -4% compared to 2009 at constant exchange rates. A turnaround from last April when Sanofi evoked a growth in earnings per share from between 2% and 5%.In addition, Sanofi would have views of the U.S. biotech Genzyme after the Wall Street Journal.
Fimalac was released Friday after market up its turnover by 6.9% to 443.2 million euros in the first nine months of its 2009-2010 fiscal year ending September 30.
April Faiveley Group and publish their turnover in the first half after the stock market. Icade and Klépierre unveil at the same time their interim results.
New onset of fever to SNCM. During one week, a dozen sailors were delayed for one hour each day the ship departs The Corsican liaising Nice L'Île Rousse. They demanded an adjustment of their pay with that of other marine company. They succeeded, and The Corsican found Thursday its normal pace.
This social movement falls at the worst time, tourist season and while the company controlled by Veolia has also lost market share in the first half. Its traffic decreased 7.1%, one of Corsica Ferries increased by 17.5%. Moby Lines, the latest newcomer, received nearly 33 000 passengers in three months.
"Our main concern is with Moby Lines are denied benefits that help the passenger, and Corsica Ferries.With the current system, they can only gain additional market share, "worries Alpozzo Frederick, Secretary General of the CGT SNCM seafarers. For the union, the welfare system to the passenger distributed by the local authority Corsican airlines operating out of Nice and Toulon is "antagonistic" to that of the public service delegation (PSD), benefiting SNCM and CMN from Marseilles. "This is not a compensation of public service but a premium for social dumping," Frederick Alpozzo ton.
Risk of losses in 2010
A report commissioned by the government pointed the problem. The ball is in the camp community Corsican. A special session is scheduled in September to review all aid to maritime transport. "SNCM is in a delicate position.She could ask to not go after the convention of CSP, which expires at the end of 2013, we recognize the Corsican Transportation Agency (CTA). Out of the red in 2008, SNCM has gained nearly 18 million euros in 2009 thanks to a gain on disposal of a vessel (26 million). The CTA believes that the company's losses could reach 20 million this year. To make matters worse, if a new DSP is launched, the agreement could exclude ferries operating at peak periods. She would come into force in 2012. Suddenly, the reduction plan envisaged by the SNCM fleet in February, dropped after the strikes of the CGT, may become relevant.
"We need things to change and we stop losing money.Either we reorganized the DSP is still there and it will be dramatic, because it will break everything, "Frederick alarmed Alpozzo who admits fear a scenario where the SeaFrance 725 employees will be dismissed.
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Exxon Mobil, Shell, Chevron and ConocoPhillips have announced the establishment of an emergency fund of one billion dollars for the construction of a rapid response system in case of oil pollution in the Gulf of Mexico. Each group will invest up to 25% in the fund, which does not BP. According to their press release, the combined oil and want to be able to intervene by 3000 meters deep, containing leaks up to 100,000 barrels per day.
In Washington, the House of Representatives passed two bills. One aimed at improving safety on oil drilling sites and the other on prevention technologies and management of oil spills.
BP, which aims to give ten billion dollars of assets to fund the cost of the flight on its platform in the Gulf of Mexico, awakens the interest of India bad credit payday loans.Indian Minister of Petroleum, Murli Deora, said studying the possibility of taking stakes in a gas field of British oil in Vietnam. But for now, BP is focusing on meteorological considerations, a depression in the Caribbean, threatening to become a hurricane in the Gulf of Mexico by 48 hours. BP therefore plans to suspend his final attempt containment of the leaking oil. The sealing work, in progress, would be deferred for two weeks already after three months of unsuccessful attempts.
Vacationers should take their troubles patiently Tuesday night to Thursday early morning. These three days may indeed be synonymous disrupted air traffic at major airports of Paris and the provinces, due to a strike call launched by six unions of air traffic. Disturbances should begin on Tuesday evening and end Thursday afternoon, the time that the rotations of aircraft back to normal.
In a statement, the Directorate General of Civil Aviation (DGCA) said he had asked the airline to remove 50% of flights at the airport of Orly and 20% of those expected at Roissy Charles de Gaulle.
For its part, Air France announced that 100% of long-haul flights will be provided, and that 80% of its flights short and medium haul routes from Paris-Charles de Gaulle and 50% from Paris-Orly."We can not exclude some flight cancellations throughout the day. Delays will also be possible, "the company said, calling his passengers to see the information updated in real time on its site, under" schedule "and" timeliness of flights, or by phone at 3654 and SMS sending their flight number to 63654 (eg by typing: AF2062).
CorsairFly for its part ensures that the strike "will have no change on the flight program, also expected some delays due to disruptions related. All rotations of the company will be assured. The company also urges customers to check their flights on its website.
The DGAC said that a strike slogan added "stormy weather that could disrupt traffic".More details are expected early Tuesday afternoon.
"A passage in force"
The CGT, CGC, FOR, UNSA UNSA-IESS and ICNA-call for mobilization to denounce the European program for creating Single Sky FABEC, and the dismantling of the DGAC. They denounce as in January and February, the establishment by the end of 2010, a single air control operator for France, Germany, Switzerland and the Benelux countries. "The creation of such a body fusion will inevitably lead to the dismantling of the DGAC, the structure was considered to be efficient in terms of cost, security and service to users," say the unions. Moreover, "this merger will mean the de facto release of all or part of his personal services and the scope of the State Civil Service.
Joffrin Olivier, secretary of the National Air Traffic Controllers CGT:
The time is more than ever to the rigor and hunting revenue. The general rapporteur of the Finance Committee of the Senate, Philippe Marini proposes to raise interest rates reduced VAT are entitled to the restoration and renovation of homes by 5.5% to 8%, in an interview with the daily La Croix. "The challenge of this increase of 2.5% reduced rate, which could occur as early as 2011, is 7 billion euros per year," said Senator UMP de l'Oise.He is "convinced that we can not drive a controlling public deficits without addressing a VAT increase," because "that's where we found the most significant fiscal effects.
VAT in the catering dispute
The president of the centrist Senate Finance Committee, Jean Arthuis, for his part argues for the introduction of VAT "between 10 and 12%" to local shops, including restaurants instant payday loan no TeleCheck. The Budget Minister Francois Baroin, had also mentioned in June the possibility of raising the VAT paid in the restaurant, before retracting. A year after the VAT reduction from 19.6 to 5.5% in all the restaurants, the measure of criticism towels.
Plea for a wide shot of plane
And as the government seeks to save 100 billion euros by 2013, envisages various tracks. As such, Philippe Marini believes that "all preferential arrangements under the income tax, but VAT, pursuant to corporation tax, the solidarity tax on wealth, can be affected by the reduction of the tax expenditure.
From our special correspondent in Tokyo
François Fillon has dropped the word naturally. He who rejects the word rigor in Paris, finally telling the truth in Tokyo. "Of all the state budgets, the only one who is not subject to discipline is that of Higher Education and Research, argues the prime minister, at the turn of a sentence imposed before an audience of five hundred Japanese businessmen and under the approving glance of Christine Lagarde.
True to his outspokenness, the Minister of Economy has not taken greater care to reassure the business community Nippon concerned about turmoil in Europe since the sinking of the Greek economy. "There is not in France, I can assure you of hidden deficits. We have a package of structural deficits, but our accounts are audited very seriously, "warned the owner of Bercy.What has been told to François Fillon not without humor: "Unfortunately, there is no hidden revenue either!"
The European austerity plans discussed at length
He came to Japan to reassure businessmen and Japanese bankers, Francois Fillon has long defended the austerity plans implemented in the euro area. The European currency crisis causes, in fact, Japan concern and uncertainty about the strength of the European Union. The major daily newspaper Nikkei has made his One, two days ago, the 30% decline in investment in the euro countries during the first half of 2010 faxless cash advance.
"I understand that, seen from Asia, our operations can sometimes be difficult to perceive and understand.But Japan's national interest is not to turn away from the euro, "Francois Fillon urged by recalling that Europe is" the great market of the developed world with 500 million consumers. Incidentally, he ditch tackle the Anglo-Saxon does not deliver, he says, a "balanced view of the success of the European Union" and invited his audience to read the German press and French.
Before leaving Tokyo, Francois Fillon met with his counterpart Naoto Kan. In addition to macroeconomic issues, the two men discussed several issues of the Franco-Japanese: nuclear, automotive and aerospace.Weakened by his recent defeat in the senatorial elections, the center-left prime minister of Japan can not implement as it sees the budget and tax reforms that could reduce Japan's debt, too colossal.
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Three years after its rival, Blackstone, and especially after three years of unsuccessful attempts, KKR was thus introduced for the first time at the New York Stock Exchange Thursday. Initially, the U.S. investment fund and private equity had planned to enter the market on Wall Street one month after Blackstone, but the crisis had decided otherwise. KKR, which was delisted from Euronext Amsterdam on Wednesday, offers no new action at this time, but plans to issue 500 million shares, according to market developments.
Valued at $ 7.1 billion in stock, as the closing price on Wednesday (up 2.9%), against 26 billion in the summer of 2006, KKR could see its market capitalization rise to $ 9.2 billion , according to analysts at Rabobank.They believe that after Blackstone's IPO in New York a second heavyweight private equity could galvanize investor interest and emulation.
Redeploy the firm
After the resignation of Jerome Kohlberg (the second "K" "KKR") in 1987, shares Henry Kravis (the first "K" "KKR") and his cousin George Roberts (the "R" of "KKR ") amounted to 13% for each of the company, which manages 55 billion in assets and employs 600 people. All employees of KKR a stake in the capital.
The two founders of U.S. private equity group hoping through the IPO to ensure that KKR will become less sensitive to cycles of uncertain LBO (leveraged buyout or takeover of a company through debt). This is why they are working on a redeployment of the firm towards the profession of investment banking.The question is whether investors will be convinced.
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