(Adds detail from call)
April 27 (Reuters) - French electrical equipment group
Schneider Electric on Tuesday raised its full-year
outlook, buoyed by first-quarter sales that beat expectations
due to strong demand for its data centre and building energy
management products.
Schneider, which sells products ranging from electrical car
chargers to industrial robotics, is now targeting a 14%-20%
increase in 2021 adjusted earnings before interest, taxes and
amortisation (EBITA) with revenues likely to gain 8%-11%.
It had previously forecast adjusted EBITA growth of 9%-15%
for this year, from revenues up 5%-8%.
"We did see increased tensions in the supply chain over the
first quarter," finance chief Hilary Maxson told Reuters in a
call, citing weather conditions in the United States, the Suez
Canal and accelerating demand.
A pandemic-led surge of consumer electronics sales,
stockpiling in China and supply problems have caused a global
shortage in semiconductor chips that has squeezed capacity and
driven up costs of even the cheapest components.
Maxson said that the group expected impacts from the
shortage to peak in the second quarter and effects so far had
been limited.
She added that Schneider was exposed to supply issues for
certain plastics and types of semiconductors, though the new
profit target range accounted for uncertainties throughout the
year.
Boosted by particularly strong growth in China as well as
robust demand for its data centre and building energy management
offerings, first quarter sales jumped 13.5% organically to 6.53
billion euros ($7.88 billion).
Analysts polled by the company had forecast revenues up 8.2%
to 6.22 billion euros for the quarter.
As part of a disposals plan, which it had put on hold in
2020, Schneider said it had agreed to sell its Northern European
cable support business to the Storskogen Group, bringing
cumulative revenues from the scheme to 700 million euros.
($1 = 0.8283 euros)
(Reporting by Sarah Morland in Gdansk; Editing by Rashmi Aich
and Carmel Crimmins)
