Good performance in 2011 first half
Sales growth: +10.4%
Adjusted operating margin: 21.0%
2011 targets confirmed
Gilles Schnepp, Chairman and Chief Executive Officer of Legrand, comments:
In the first half of 2011, Legrand sales rose a total 10.4%, backed by:
- organic growth1 of 7.9% driven by fast-moving new economies (nearly 16% organic growth1 and 22% total growth1) in Asia, Latin America, the Middle East and Eastern Europe; by successful new-product launches, particularly in France and Italy; by vigorous expansion in new business segments2 (nearly 17% organic growth1 and 28% total growth), and by a favorable basis for comparison,
- self-financed bolt-on acquisitions of small and mid-size companies offering high growth potential and strong market positions. Consolidation of these acquisitions contributed 3.1% to growth in the first six months of the year.
In the first half of 2011, Legrand maintained its adjusted operating margin excluding acquisitions at 21.3% as in the first half of 2010 and the first quarter of 2011. This good operational performance illustrates, in particular, our success in passing on into sales prices the steep rise in raw material prices observed in the first half of the year. Adjusted operating margin including acquisitions was 21.0% for the period.
Confirmation of 2011 targets and effectiveness of Legrand’s business model
First-half results were in line with our expectations, allowing us to confirm our 2011 targets:
- 5% organic sales growth1, rounded out with acquisitions ,
- adjusted operating margin equaling or exceeding 20%, including the impact of acquisitions3.
All in all, these good performances illustrate both the effectiveness and the soundness of our business model, and support our mid-term objectives. ”
1 Organic growth: at constant scope of consolidation and exchange rates
2 Digital infrastructures, energy-performance solutions, residential systems and cable management
3 Small and medium-size bolt-on acquisitions