APC 1998 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 1998 APC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 45

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45

Schneider Electric
Asia, Latin America, Africa, Middle
8 000
employees
Continued growth
In Asia, Latin America, Africa, the Middle East and the Pacific, Schneider
Electric’s International Division encounters extremely diverse business
environments. Many countries in these regions qualify as emerging economies.
T heir combined needs are therefore enormous, as is their growth potential.
But because the geopolitical situation in these areas can be uncertain,
there is often a latent risk of crisis or recession.
T he Division comprises 41 subsidiaries in seven regions, 22 liaison offices,
33 plants, and 2,200 sales outlets.T his broad presence enabled the Division
to cushion the effects of the Asian crisis and achieve 9% growth.
Schneider Electric’s strategy is now aimed at greater decentralization.
We want to work closer to our local customers, and we are doing this by
increasing the number of sales and production facilities, fielding more sales
and support teams, and negotiating partnership agreements with the key
players in each region.
Highlights
Asian crisis
By maintaining strict control over investment commitments
in Southeast Asia, Schneider Electric limited the impact
of the Asian crisis on its business. In addition, the segments
in which we hold leadership positions— such as low voltage
distribution— proved resilient. Our sales in Southeast Asia
and South Korea fell 39%.
In spite of the crisis, our financial results are on target.
We owe this performance to our rapid structural and cost
adjustments in response to the business downswing.
Birth of Toshiba Schneider Electric Ltd.
At the beginning of 1999, Schneider and Toshiba strengthened
their already close partnership by setting up a joint venture
under the name of Toshiba Schneider Electric Ltd.
The unit will develop, manufacture, sell, and support low
voltage products for the Japanese electrical distribution
and industrial control markets.
Brisk growth in many regions
Robust growth was recorded in South America (35%),
Africa (17%), the Near East (8%), and northern Asia (7%),
thanks to the invoicing of a large number of contracts
in the high voltage market.
20%
Area sales
Workforce
FF
10.0
billion
€
1.5
billion
Area sales
as a % of total