Legrand Press release
Solid results in the first nine months of 2016
Healthy total growth in sales: +4.1% (including +2.1% organic growth)
Rise in adjusted operating profit: +5.7% (adjusted operating margin before acquisitions: 20.2%)
Ongoing Group development
Deployment of the Eliot program: success of connected offers and launch of Eliot in North America
Active external growth: eight acquisitions made since the beginning of the year
2016 targets updated
Organic change in sales: 0% to +2% (compared with an initial target of -2% to +2%)
Adjusted operating margin before acquisitions: 19.3% to 19.6% (compared with an initial target of 18.5% to 19.5%)
Gilles Schnepp, Chairman and CEO of Legrand, commented:
“Solid results in the first nine months of 2016
Legrand sales in the first nine months of 2016 were up +4.1% in total, or nearly +7% excluding the exchange-rate effect.
Organic growth in Group sales was solid at +2.1%, with a very good performance in the United States (+7.0%) and rising sales in mature countries in Europe (+1.8%) more than offsetting a slight retreat in new economies (-0.6%) where some countries face unfavorable economic conditions.
The broader scope of consolidation resulting from acquisitions was healthy at +4.6%, reflecting the good momentum of this growth driver.
Adjusted operating profit rose +5.7% and adjusted operating margin before acquisitions (at 2015 scope of consolidation) stood at 20.2% of sales compared with 19.7% in the first nine months of 2015, i.e. a 0.5-point rise. Taking acquisitions into account, adjusted operating margin came to 20.0% for the first nine months of 2016.
Net income excluding minority interests rose +2.3% to €426m, or 11.5% of sales.
Free cash flow generation was solid, with normalized free cash flow at 13.0% of sales over the same period, allowing Legrand to continue to self-finance its development over the long term.
This good overall performance reflects the commitment and operational efficiency of Legrand’s teams...
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