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)