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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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.
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.
The Paris markets are taking a break on Wednesday after a strong upward meeting. At midterm, the CAC 40 was down 1.49% to 3372 points. Tuesday, in a very quiet market, the indexes have climbed throughout the day to reach a closing up 2.73% over 3400 points. A rebound reflecting the high volatility of recent weeks: Monday again, the CAC 40 was approaching its lowest level this year.
Elsewhere in Europe, even movement. The Frankfurt Stock Exchange evolves decline of 1.27% to 5865.20 points while the FTSE index down 1.26% to 4902.70 points.
On Wednesday, investors in Paris after their Asian counterparts who chose to take profits.For its reopening after a weekend of three days, Wall Street gave no signal, calling instead for caution with a fence unconvincing in the green.
In terms of indicators, the trade deficit of France has risen sharply to 5.5 billion euros in May from 4.258 the previous month due to a decline in exports, according to data released by Customs. Economists had expected on average a deficit of 4 billion euros.
Also note that according to a recent estimate of the European office of statistics Eurostat, euro zone economy grew 0.2% in the soft first quarter.
Moreover, the German industrial orders fell for the first time this year in May, 0.5% from the previous month, according to figures released Thursday by the Ministry of Economy.Economists interogés by Reuters on average expected a rise of 0.5%.
The car in the viewfinder
As for values, the auto sector should move on Wednesday. Peugeot has announced an increase in worldwide sales of 16.9% in the first half. The title of the group climbed 0.14% to 21.60 euros. Furthermore, Peugeot would invest 700 million euros to resume production project in India, reports the Wall Street Journal.
For his part, Renault (-0.34% to 31.02 euros) which must publish its results tomorrow, Thursday trading.
Sodexo (-0.80% to 47.22 euros) released before the market turnover with 11.54 million euros in the first nine months of the year.The group is an organic growth of its turnover for the full year 2009-2010 of about 2% and hope to achieve an operating profit of between 780 and 800 million euros excluding currency effects the exercise.
Meetic (-0.99% to 19.90 euros) announced Wednesday to build on an EBITDA margin of between 20 and 25% for 2010, unchanged from its 2009 goal. The leading European dating sites also said that synergies from the integration of Match.com, the first since last June, should reach 10 to 15 million euros in the first year.
Atos Origin (-1.34% to 32.33 euros) announced Tuesday the launch of new services known as "smart mobility".The services company led by Thierry Breton makes 850 million euros in turnover in the field of electronic transactions and placed on the strong growth in use on smartphones.
Profits fell, but dividends have resisted. Despite the fall in profits last year, the CAC 40 companies will total $ 36 billion in dividends to their shareholders this year (in respect of 2009 results). "It's almost as much as in 2008, and it shows the willingness of companies to retain their shareholding," says Sonia Bonnet-Bernard, associate-manager Ricol Lasteyrie, who yesterday presented the fourth financial profile done by the CAC 40 firm.
The payout ratio (the amount of dividends compared to profits) has jumped to 90% (excluding Arcelor Mittal) in 2008 against 48% or 42% in 2007. Only four groups have decided not to pay: EADS, PSA, Renault and Alcatel Lucent.
The corporate largesse is all the more surprising they have not hesitated in the same time, to launch capital increase to finance themselves.More than a quarter of the CAC 40 companies have used the market last year to strengthen their capital, notes Ricol Lasteyrie. In total, shareholders might have paid 24 billion euros. "Companies that take on debt, make capital increases or selling assets … while maintaining their dividends, that has always existed. But for two years, it shows a little more often, "says Moudy El Khidr, portfolio manager at ING IM. In Europe, however, few companies have debts to pay their shareholders. They preferred the issue of new shares.
Iter barely get under way. The international program which provides for the construction of a thermonuclear fusion reactor could be delayed again. The European Commission should in fact announce Wednesday that it does not sign the document which puts the project on track, says Les Echos published Wednesday.
The European Union has failed to obtain the financial commitment of the twenty-seven member states until 2040 to ensure the viability of the project. The European contribution for 2007-2020 has almost tripled from 2.7 billion euros expected in 2001 to 7.2 billion euros this year. For 2012-2013, a European envelope further 1.4 billion euros is needed.
Diplomatic issues
However, this explosion of the budget falls very ill, while the finances of European countries are seriously affected by the economic crisis and the recent austerity plans.One familiar with the matter told the Echo that the project has become important diplomatic: "Because of security issues in terms of global energy supply, the fight against climate change and investment, its status is more only scientifically. It is now a political project where the game of diplomacy is as important as the result of research equations.
The ITER project aims to provide a solution to the global energy crisis by reproducing the energy production inside the sun. The fusion of hydrogen nuclei would provide an inexhaustible energy, cheap and clean (it produces little radioactive waste, unlike the mechanism of nuclear fission).The reactor built on the site of Cadarache Provencal begin operation in 2018 but will be fully operational in 2026.
Seven partners (the European Union, China, India, Japan, South Korea, Russia and the United States), representing over half the world population, are involved in the project that meets the opposition Greens. Time is running out for Brussels. Tired of difficulties, the United States plans to reduce 40% of their financial contribution to the project and other countries could follow suit. The Commission hopes to resolve the problems of the project's contribution today and in the other two European meetings on 21 and set June 25
At Transport SNCF, talking about a non-event. Standard and Poor's downgraded by one notch Friday mark the long-term debt of the public company, which went from "AAA" – the highest possible – from "AA +", the prospect is stable. This means that S & P should not lower the rating further in the months to come.
The rating agency justifies this development, which will cost "several million" up interest rates to SNCF, by "the European rules that could make it more difficult in future for possible financial support" of government French in the public company as well as the opening to competition of rail passengers including his lucrative branch TGV."We believe that the most profitable activities of the station will be gradually exposed to competition," explains Standard & Poor's.
Since 1 January, the international passenger traffic is indeed officially liberalized in Europe, pending an opening to competition of domestic traffic, which is expected by 2015. For now, only Veolia announced its willingness to engage in this activity. A perspective that condemns the station eventually to lose market share.
"It remains a very good note"
The SNCF said it was prepared to such an announcement since the "perspective" was negative since September 2008. "It remains a very good score Guaranteed pay day loans.Many European states have not rated AA +, "said David Azema, deputy CEO in charge of finance and strategy at SNCF. The rating agency looks at the level of support that the station can expect from the state. The AAA rating corresponds to a quasi-automatic support in the event of default and AA + to support very highly probable. "
The company refuses to see in this a confirmation that the degradation status of public institution operating in industrial and commercial (Epic) is threatened. The S & P's decision certainly comes just after France decided to take legal action against the EU Commission, which considers the status of Epic necessarily implies an unlimited guarantee from the state, inconsistent with competition who sits in the sector.The rating agency noted that although skirmish between Paris and Brussels, but does not in itself a cause of degradation.
Conversely, the fact that the station has seen its rating lowered even though it is still an Epic could argue along the lines of the French arguments: clearly, the status of Epic does not mean the view of S & P that the situation Financial SNCF blends perfectly with that of the French state.
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Societe Generale, -6.6%, Credit Agricole, -4.9%, BNP Paribas, -4.6% … French banks weigh heavily on the Paris Bourse. The CAC 40 digs on Friday its losses (-1.8% to 3663 points to 11:00).
His European counterparts also suffer, while banking stocks enroll the largest declines, everywhere.
This reflects the renewed concern about the economic health in Europe, barely a week after the European plan negotiated the titanic last weekend. Further evidence of the uncertainty room, the euro broke the 1.25 dollar, which had not happened for 14 months. Gold coast near 1,240 dollars per ounce. Unheard-of.And oil is under $ 74 a barrel.
Banks underperforming in Europe
In Italy, while the FTSE-Eb hollow losses and was down 2.7% at 20,314 points at 10:30, the many bank stocks are at the bottom of the list: in order, loose UniBanca 4.6% to 8.1 euros, Mediobanca, 4.2% to 6.2 euros, Banco Popolare, 4% to 4.25 euros, UniCredit, 3.5% to 1.9 euro, and Intesa Sanpaolo, Italy's leading bank , yields 3.8% to 2.2 euros.
In Spain, same old story. The Ibex 35 largest market capitalizations falters 3.4% to 9639 points, and the banking sector heavyweights weigh box. Banco Santander, the second largest bank in Europe, falling 5% to 8.7 euros, and Banco Popular 4.75% to 4.7 euros.BBVA fold from 3% to 9.2 euros and 3.6% of Bankinter at 4.85 euros.
The Dax in Frankfurt, he, more resilient – the index of 30 companies the biggest German stock market down 0.45% at 6223 points. But again, it is Deutsche Bank, which is at the bottom, falling 2.16% to 49.8 euros and Commerzbank sells 2.1% to 106.8 euros.
In Belgium, KBC retrograde 3.4% to 31.5 euros and Dexia 3.25% to 3.7 euros in a market down 1.75% at 2490 points for the Bel 20. And in Switzerland, UBS depreciates 3.35% to 16.1 Swiss francs, financial group CS Group lost 3.1% to 47 Swiss francs.
The bank still frontline
Fears of a state unable to grow its fiscal power the risk of lowering its rating by a rating agency. But what are the financial institutions in a country with the largest of government securities in the portfolio.
Generally, capital financial institutions required to hold an asset also depends on the "rating" (the note) of the issuer of this title. If it deteriorates, the capital required to hold a state title will be more important.
As banks are exposed to the Spanish Treasury securities, profitability and solvency is lowered … hence the fall in stock.
An afternoon and night to negotiate a little. Finance ministers of the European Union gathered in Brussels on Sunday to develop a European Support Fund before the opening of Asian stock markets in the night. The mechanism would be for the countries of the euro area are experiencing difficulties in refinancing their debt markets.
These negotiations will be tough. If Sweden, which does not belong to the eurozone, said she would not rule of replenishing the fund for assistance, the United Kingdom, he was categorical. It will not contribute to the plan because it is not part of the single currency club.
"I think it is important that we do everything we can do to stabilize the markets …Be very, very clear: if there is a proposal to create a stabilization fund to the euro, it must be left to the Eurogroup countries, "said British Finance Minister, interviewed from Brussels by British news channel Sky News.
Despite these differences, the EU wants to send a strong signal to markets. They have since the beginning of the crisis in Greek, brought little credit to European decisions. On Sunday, the Spanish Minister of Finance, Elena Salgado, has shown great volunteer arriving in Brussels for talks: "We will defend the euro, we believe that we should give more stability to our currency, and we will do what is necessary to achieve that goal. "She also stated that "Spain does not intend to use this fund."
The original idea was that the European Commission to borrow under the guarantee of all countries of the European Union, including those like Britain that do not use the euro, as it is mechanism of the EU, diplomatic sources said.
To validate such a device would require the approval of a majority of the 27 qualified enough that EU ministers meet in Brussels, but the goal is to have a consensus.
An agreement must Tonight
London's refusal to participate could force the euro zone to fall back on a loan facility guaranteed by the only countries using the single currency, an option also being considered.
The contingency plan for defending the single currency will he ultimately guaranteed by all countries of the EU or the only states in the euro area? "It's a question for debate," a diplomatic source admitted to another European country.
The British, they refuse to give their guarantee for loans in Europe, however, are willing to approve in principle the establishment of the Stabilization Fund, according to British sources.The latest proposal on the table talking about a $ 60 billion for the fund, she said.
The euro area is imperative to reach an agreement before financial markets open in Asia on Sunday night to Monday in order to be able to reassure investors after Greece took in their sights Spain, Portugal or Italy.
London also in turmoil
The United Kingdom is, as the euro area in turmoil. The elections on Thursday did not produce a clear majority in Parliament, which is at once suspended. Because of this uncertainty, the pound fell Friday below 1.46 dollars, its lowest in a year.
Markets are particularly concerned about the reduction of budget deficit British, the highest of the major EU countries. It reaches 12% of gross domestic product (GDP).What dig the debt, which could peak at 94.1% in 2011, according to the OECD. The rating agencies expect the presentation of a future austerity plan to degrade or not the "AAA" rating from the United Kingdom.
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The clouds are gathering over Goldman Sachs. After the announcement of a complaint by shareholders against the directors, the Wall Street Journal revealed on Saturday that five of them sold their shares after the bank had been informed that an investigation by the SEC, the U.S. stock Constable , was the establishment. They have sold their shares at a purchase price of $ 65.4 million (48.9 million euros).
The Wall Street Journal, officials have sold the shares in question are an attorney, two vice-presidents, a chief accountant and a member of the board of directors.
The sales took place between October 2009 and February 2010, the Wall Street Journal reported on its website, citing the company InsiderScore.com, which presents itself as an observatory of insider stock transactions.A few months ago, in July 2009, the SEC had informed the bank that it was considering legal action against them.
On April 16, the day the SEC announced it had filed a complaint for fraud against Goldman Sachs in the civil courts, as the Goldman Sachs lost 13% of its value on the NYSE. The fall had continued throughout the week.
To prove his good faith
The announcement comes as Goldman Sachs is preparing his hearing Tuesday before the Parliament. According to a document of 11 pages that she purchased the Washington Post, executives at Goldman Sachs who will testify alongside Fabrice Tourre want to demonstrate their good faith in this matter.
Before the Senate subcommittee investigation on the financial crisis, they will indicate that they do not know if housing prices would increase or decrease when the product under investigation, the Abacus, was sold. The document describes the debate that animated the leaders of investment banking in 2006 and 2007. As proof, the bank will provide the e-mails on the subject by the leaders.
Nuisance emails
Their testimony should however be undermined by embarrassing e-mails released by a Senate committee on Saturday. According to the messages exchanged, the bank would have otherwise benefited from the mortgage risk to pocket tens of millions of dollars.
In one of these messages, the CEO of Goldman Sachs, Lloyd Blankfein, wrote: "We obviously have not escaped the bedlam of subprime mortgage.We lost money and then we have won more than we lost through our short position. In another mail, managers assess the consequences of failing grades assigned by rating agencies, subprime, "like we're going to make much money," wrote one of them. "Yes, we are well positioned," replies his colleague.
"Investment banks like Goldman Sachs did not just brokers, they were interested developers of risky and complex financial products that led to the outbreak of the crisis," says Carl Levin, chairman of the Sub-Commission Senate Permanent Investigation, which will face the leaders of the bank Tuesday.
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