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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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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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.
EDF restructures its financial management. The electrician is preparing a comprehensive plan public savings on purchases that came with the creation of a new division "synergies and transformation" in the CFO, said on Monday, Les Echos.
This new direction will be entrusted to Christian Fontanel, Director of Audit, and attached to the new CFO, Thomas Piquemal. Its mission is to "optimize the group's international scope, particularly in procurement," the newspaper said. While Les Echos reported that EDF has made last year to 11 billion euros of purchases – in France, but also in the United Kingdom, Germany and Italy – the savings on the position of the purchases can achieve 10% of the total, according to analysts. That's more than 1 billion euros in the case of EDF.
Another post where the group seeks to achieve economies: investment.Last year, EdF has spent over 12 billion euros over the budget line. And again, EDF plans to make some adjustments. The Finance Department will assist the operational divisions in the management of investments. This mission will be headed by Stéphane Tortajada, currently deputy CEO at Casino Development. From mid-July, so it will also be in charge of fundraising and investment of EDF, replacing Anne Le Laurier.
Finally, in terms of its debt, the newspaper wrote that EDF "will allow one more month to decide whether to sell its UK distribution network, estimated at 5 billion euros. If this solution was not ultimately successful, the group would consider making other assignments.
The Paris Bourse is expected to continue its momentum from last week. Although nothing is played, far from it. But in recent days, the indices seem more determined to resume the upward path. Trading volumes – including the Paris Stock Exchange – have been more included. On Monday, futures are traded in Paris more than 1.10% at 3582 points. If the increase is confirmed, it would mark the fourth straight session of gains, that we have not seen for a long time.
On Friday, the CAC 40 gained just over 1% to just over 3555 points. On Wall Street, the Nasdaq has also allowed U.S. markets finished the week on a positive note.
After the month of May especially murderer for the whole compartment, investors believe that European markets are undervalued and therefore, that good things are done.
On the foreign exchange market, the strengthening of the euro was confirmed this morning – it is trading at 1.2183 dollars against 1.2077 on Friday. The euro is closer to $ 1.22 in the wake of the stock market, and good resolutions are shown in deficits on both sides of the Rhine, pending the meeting between Merkel and Sarkozy, this evening after the meeting you missed last Monday .
Values follow
Club Med
The group has announced the official name of the Chinese investor who took 7.1% stake in the leisure group, the group Fosum.
Societe Generale
The bank puts his hand on the CMS for a peuplus 870 million euros.An operation that was in the pipes for several weeks and was formalized this morning before the opening of the Parisian market.
Axa
The insurer has confirmed the sale of part of its life insurance business in the United Kingdom. The buyer, the group Resolution, is prepared to pay 3.3 billion euros to get their hands on this activity. Axa will keep activities damage, life insurance and individual savings.
Renault
The automaker is expected to benefit from information delivered over the weekend by its Russian partner Avtovaz plans to return to the green this year after heavy losses in 2009. The first constructor Russian head out of the water, enjoying the scrappage.
Very bad trading day Wednesday for the title again BP. In London, the stock fell 4.24% to 391.55 pence. On Wall Street, the same day, the stock has tumbled 15% to just 29 plsu dollars.Pour many observers, the cost of the oil spill in the Gulf of Mexico is likely to jeopardize the very existence BP. "The action suffers now fears the very future of BP. It is no longer just a noise reduction of the dividend. Now it's survivability in question, "said Jon Najarian, founder of the news website optionMonster.com.
At the London Stock Exchange, the fears were mostly related to the fact that BP would eventually suspend payment of its dividend. "We are resigned to the fact that there may be a suspension of the dividend," said Tony Shepard, an analyst at Charles Stanley, quoted by Reuters.
Last Friday, though BP has reaffirmed its intention to announce to its shareholders on July 27 the amount of its interim dividend by way of the second quarter. Dividends paid by the group representing some 10.5 billion dollars (8.7 billion euros) per year.
Yet another bad news for the oil group that is not due to his inability to pay, but the fact that the U.S. authorities there are not favorable payday advance. "It does me no problem that BP complies with its legal obligations (to its shareholders, Ed), but I want them to know they have a moral and legal obligations here in the Gulf, warned Tuesday Barack Obama.
The U.S. authorities have also sent an ultimatum to compel them to BP by unveiling its plans to 72 hours to stop the leak.
"BP must state its plans for its parallel initiatives ongoing and alternative oil recovery, including establishing a timetable within 72 hours after receipt of this letter," says the letter from the admiral-cons Coastguard James Watson chief operating officer of BP, Doug Suttles, and dated Tuesday.
With the installation of a funnel, BP has accelerated since last week the recovery of oil leaking from the wells to 1,500 meters below the surface of the water for more than seven weeks. But the water continues to move towards the U.S. coast and crude oil continues to flow.
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The weather global economic summarized in three figures: production (GDP) will grow 10% this year in China, 3.1% in the U.S. and 1% in the euro area countries. For the whole world, growth is expected in 2010 to 4.2% and 4.3% in 2011. With a clear dividing line between the advanced countries, whose growth prospects are around 2.3%, while savings "emerging or developing" a galloping pace of 6.3%.
These new "World Economic Outlook," IMF showed that "the recovery unfolds better than expected. But new challenges have emerged and exceptional "cautioned Olivier Blanchard, chief economist of the Fund. He calls a "warm" restart in the advanced countries, which are still found a lower level of production of 7% it would have without the crisis.In the eurozone, the IMF also revised downwards by 0.1 percentage point to 1% its forecast for growth in 2010, although France, among others, has fared rather better with a forecast of 1.5% instead of 1.4%.
Dependence credit
For Europeans to wonder why their economies pull themselves together much more slowly than America, Olivier Blanchard gives two main explanations. Europe is "more dependent on bank credit as the U.S. market where finance plays a greater role for business and they have restarted the fittest." Furthermore "the policy responses have been later and less strong in Europe," he adds.
This means that the IMF does not disavow the fiscal stimulus plans, including Dominique Strauss-Kahn, their boss, was one of the strongest supporters, from January 2008.But "it is urgent to develop strategies for fiscal consolidation in the medium term" now stress the same experts. They note that the budget deficits in advanced countries have now reached 9% of GDP on average and that "the debt / GDP ratio should exceed 100% by 2014 if nothing is done.
Rebalancing Economic Policy
The situation is more delicate than a too abrupt adjustment of public finances could hinder growth already shaky. Hence the advice to double trigger "to fully implement fiscal stimulus measures planned for 2010, except in countries which already have a strong increase in their risk premium and must begin to rebalance their budgets now," as Greece. But the most advanced countries should undertake a substantial fiscal consolidation in 2011.
Emerging economies are the reverse face "to an influx of capital, a good thing in itself, but can become excessive," warns Olivier Blanchard. He recovered one of his favorite anthems "the currencies of a number of emerging markets remain undervalued in considerable proportions regarding the yuan." It calls for a revaluation of the currency, both in relation to the dollar than the euro, the only way to give oxygen to Western exports and ease the risk of overheating in Asia. This rebalancing of economic policies will be central to discussions of the G20, whose finance ministers meet Friday in Washington.
The Securities and Exchange Commission (SEC), the U.S. stock market watchdog, said it had initiated proceedings for fraud against Goldman Sachs. The U.S. bank would have hid crucial facts about financial products affected by the subprime crisis. Fraud concerns the structuring of CDOs ("collateralized debt obligations) linked to subprime subprime.
Goldman Sachs action was immediately heavily impacted by this lawsuit.Around 17h35, the title fell by almost 14% to 160.3 dollars, bringing in its wake many financial stocks and the major world indices no fax pay day loans.
The SEC accused the bank and one of its vice-presidents, Fabrice Tourre to have misled investors by concealing important facts about the financial product concerned, while the U.S. housing market began to deteriorate.
At 15h GMT, Goldman Sachs yielded 9.7%. The KBW index of U.S. banking sector shrank at the same time 3.5% and the Stoxx European sector gave up 1.8%.
Wall Street widened its losses, the Standard & Poor's 500 yielding 1%.
The crisis in the eurozone, triggered by the financial woes of Greece, does not discourage candidates for membership. Instead, the accelerated deadlines. Next on the list, Estonia – a member of the European Union since 2004, like its Baltic neighbors – has become in January the 17th state to adopt the single currency when it emerges just one of the worst recessions its history. The small Baltic state announced Friday a fiscal deficit and public debt for 2009 well below the limits set by the European Union, respectively 1.7% and 7.2%. These exemplary figures are enough to make the envy of the major European countries even if they hide a decline in GDP of 14%.
With these results, the government intends to pass his entrance examination in May for publishing the report in Brussels in June and especially in the political verdict Finance Ministers."I do not see how they could refuse," said Estonian Minister of Foreign Affairs Urmas Paet. Most countries in the euro area far exceed the criteria, "Bill Thomson, OECD, grade:" One can always interpret in one way or another, especially on the sustainability of public finances. This is a political decision. "As such, the entry of Estonia into the OECD in late May it provides proof of credibility.
Yet a year ago, few experts would have bet on the country joining the single currency. After years of euphoria, the country has suffered serious setbacks: the collapse of the housing bubble, crash consumption, falling exports … and unemployment rising sharply, to 14%.
Unlike most countries that have tirelessly to revive the machine, the strategy here was quite different, based at the end of 2008 on the restrictions.Salaries down, the tax burden to rise, spending freeze … In 2009, savings accounted for 9.2 points of GDP. All without protest or strike extent. "If we compare the living standards of the time (prior to its independence from Russia in 1991) and today is the day and night. Wages have increased significantly between 2005 and 2008, justifies Rein Minka, vice president of the central bank. "Estonians do not complain, it is not in their nature. They have not forgotten the rationing of the Soviet era, reflects Stecken Antoine, a French importer of cosmetics no fax cash loans . They are also followers of the liberal model."There is a consensus policy, including public opinion, to deny recovery by the public debt," said Maris Lauri, chief economist at Swedbank.
Meanwhile, the newspaper in Tallinn is very difficult. In the image Meeli Lass, 39, 4 children, opera singer, who supports her family with a salary of 13000couronnes (around 830euros) – good pay, judge the young woman. Her husband was fired, and his eldest daughter graduated last nine months looking for a job. "It tightens belt: no output, no new clothes. This winter, heating costs have soared because of very severe cold, they make up half of our budget. We still have potatoes that my husband grows outside the city. "What can we expect Does the euro? "This will be worse, answered Meeli with fatalism. Prices will rise as in Slovenia.And the country loses a little more independence. "
Flexible economy
According to surveys, almost 55% of the population believe the contrary to the virtues of the euro. He starts by removing the specter of devaluation ruinous for the country. Despite the fixed exchange rate regime, many rumors have circulated at the height of the crisis, the contagion of a Latvian lat devalued. The government also relies on the euro to attract investors. "We have a diverse economy and a very flexible system of single tax to 21%. Moreover, if the company reinvests it pays no taxes, "argues the minister of Economy, Juhan Parts.
For Maris Lauri, the only apparent in the short term will come from exports, which have already started to leave. "Estonia has a large network of SMEs that can adapt and produce in small quantities," said the economist.The close cultural, linguistic and geographical Finland is an undeniable asset. In two hours by ferry from Helsinki to Estonia, which produces a third less expensive, has become the preferred subcontractor of Finland. It cultivates its differences with its two Baltic neighbors: Latvia leaded by a banking crisis and real estate and Lithuania dependent on markets in Germany and Poland, which has seen its market collapse.
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End of suspense at Heuliez? The Turkish investor Alphan Manas, including Industry Minister Christian Estrosi announced at the end of February, the nomination was finally signed Tuesday a memorandum of agreement for the purchase of automotive equipment. According to the Ministry of Industry, the agreement which provides for a capital increase of 30 million euros – which should also involve the Poitou-Charentes region and the state – should be finalized next March 31, for the greatest relief of employees Heuliez. Three million have already been provisioned by Brightwell, the fund's investment Alphan Manas.
The recovery of the industrial problem is a political problem, just days before the second round of regional elections.Given the impotence of the original buyer Bernard Krief Consulting to bring the 15 million that was promised to the court, S?gol?ne Royal, president of the Poitou-Charente, had itself announced in February the arrival of a new candidate , Macif payday loan . But it was another disappointment for the 660 employees Heuliez, the mutual has announced some time after its withdrawal. The Minister of Industry, also on deck for the placement into receivership of the supplier, assured even at the beginning of March to be sure "99.99%" of the future agreement with the investor Turkish. "It's a businessman recognized and valued," he then pleaded. The decision to do it Alphan Manas is not made less wait.
Christian Estrosi, who receive 16 hours Tuesday at the union of automotive, therefore welcomed Tuesday the decision "great news for Heuliez and its employees", while calling for vigilance. "By this date, it is important nonetheless, given the historical record, to remain cautious until the transaction is not finalized legally.
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