APC 2006 Annual Report Download - page 67

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1. 2006 highlights . . . . . . . . . . . . . . . . . . . .
p. 65
2. Operating performance . . . . . . . . . . . . . .
p. 67
3. Change in financial situation . . . . . . . . . .
p. 70
4. Sustainable development . . . . . . . . . . . . .
p. 73
5. Outlook for 2007 . . . . . . . . . . . . . . . . . . . .
p. 93
6. Auditors report on profit forecasts . . . . . .
p. 94
4
Business
review
1. 2006 highlights
Measures and investments deployed as part of the
new2company program produced higher-than-expect-
ed operating and financial results in 2006. The Group
achieved record growth during the year, with an oper-
ating margin of more than 14.6%. This represents an
increase of 2.2 points in two years.
The Group is making full use of four key levers–
growth, efficiency, competencies and commitment–to
speed its transformation and optimize performance.
Growth
During the year, the Group pursued its strategy of
enhancing core businesses, actively expanding geo-
graphically, launching innovative products and integrat-
ing new activities to offer customers more complete
solutions and the best possible service.
Its performance garnered the 2006 Award for Compet-
itive Strategy Leadership from Frost & Sullivan, a glob-
al growth consulting company.
A sustained acquisitions strategy
Schneider Electric acquired or jointly founded a dozen
companies in 2006 that together represented around
800 million in additional revenues over the full year.
In electrical distribution, the Group strengthened
its position as the world’s second-largest provider of
installation systems and control by acquiring five com-
panies in Europe and Asia. These included Merten in
Germany, a leader in home automation that ranks
fourth in its domestic market; OVA in Italy, domestic
market leader in emergency lighting; AEM in Spain, a
cable tray manufacturer; GET in the United Kingdom;
and Clipsal Asia. Full-year revenue from installation
systems and control amounted to 1.5 billion.
During the year, Schneider Electric also created a crit-
ical power subsidiary in India to serve a market that is
growing by 20% a year.
In automation and control, the Group broadened
its presence in the building market by acquiring Inven-
sys Building Systems' IBS business in North America
and Asia. With this acquisition, building automation
and control represented full year revenue of nearly
900 million.
In automation and industrial control, Schneider Electric
expanded its high-power speed drive lineup by acquir-
ing Austria-based Va Tech Elin EBG Elektronik, which
reported revenue of around 34 million.
65
4