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Schneider Electric cuts margin outlook on market volatility
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Schneider Electric cuts margin outlook on market volatility
May 25, 2025 8:11 PM

April 28 (Reuters) - Electrical equipment maker

Schneider Electric cut its 2025 implied core profit

margin outlook on Monday due to market volatility, after its

sales missed market expectations in the first quarter.

Schneider Electric, which develops AI-related data centre

cooling systems, now sees 2025 adjusted earnings before

interest, taxes and amortization (EBITA) margin of between 18.7%

and 19%, compared to its previous core profit margin expectation

of between 19.2% and 19.5%.

"Recent macroeconomic and geopolitical developments have

added a layer of uncertainty across all markets, including those

we operate in, but we are confident in our structural growth

drivers," CEO Olivier Blum said in a statement.

The statement did not mention the impact of U.S. President

Donald Trump's tariffs where a lack of certainty created by

their on-again-off-again nature has roiled global markets,

destabilised the United States' trading partners and left

companies reassessing their operations.

Swiss industrial robot maker ABB also acknowledged

increased uncertainty in the global business environment when it

announced its first quarter results on April 17.

Schneider Electric maintained its 2025 outlook of organic

revenue growth of 7% to 10% and its EBITA margin rising

organically by 50-80 basis points.

It reported a 7.4% organic rise in its quarterly sales to

9.33 billion euros ($11 billion), missing analysts' consensus of

9.47 billion euros and revenue growth of 8.9% in a survey

provided by the company.

Sales in the first quarter were hit by declining revenue in

its industrial automation business and softness in the

residential buildings market, the group said.

However, Schneider Electric added that its Systems division

revenue grew 21% organically in the first quarter, driven by

strong traction in the data centre end-market.

($1 = 0.8790 euros)

(Reporting by Anna Peverieri; Editing by Emelia

Sithole-Matarise)

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