APC 2003 Annual Report Download - page 5

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3
We stepped up our Growth and Efficiency plans
during the year as part of our NEW2004 program,
and we intend to pursue our aggressive growth strategy
in the year ahead
In 2003, business was lifted by the renewal of
several product lines (we devote more than 5% of
sales to R&D), our ability to innovate, our improved
geographic coverage and more effective sales
and marketing.
We also took advantage of our very solid
operations in emerging markets, where we recorded
substantial growth. To give two examples, sales
rose 22% in China and 14% in Eastern Europe.
We will continue to develop our presence in these
regions. Our new Asia-Pacific Operating Division
is an important growth lever in this respect.
Organic growth was supported by selective
acquisitions in ultra terminal distribution, building
automation, secured power, automation devices and
industrial control. Key acquisitions included Clipsal,
TAC, MGE UPS Systems and Digital Electronics.
They will provide additional full-year sales of
€ 1.3 billion, with an average operating margin
of 11%. Our targeted acquisitions drive will
continue in 2004.
During the year, we also further reduced costs
to align them with changes in demand, sustainably
enhance our competitiveness, and move our
suppliers and plants closer to our markets.
Plans to improve productivity and efficiency in
purchasing, production and supply chain
management had an important impact on the quality
of our results. In 2004, we will expand these action
plans with a focus on operating excellence.
As a leader in an industry of the future and
the only company involved in the increasingly
converging worlds of Electrical Distribution and
Automation & Control, Schneider Electric will be
able to leverage considerable strengths to pursue
profitable, long-term growth. These include
our geographic coverage, our high-quality lineup
of products and services, our powerful brands,
the flexibility of our flat corporate structure, our
broad skills and our nimble, proactive teams.
We are particularly well placed to benefit from
the global economic recovery and our markets’ great
potential.
I would like to take this opportunity to thank you
for your confidence as you share in and contribute
to Schneider Electric’s success.
Henri Lachmann
Chairman and Chief Executive Officer