Company cuts sales growth target for the year

  • Legrand reports net profit of EUR937 million in the first nine months of the year
  • Sales rose 2.5% to EUR6.31 billion
  • Legrand cuts sales growth target for the year
  • Revised adjusted operating margin guidance to between 20.5% and 21%
  • Europe drives sales growth for Legrand

Legrand, the French electrical and digital building infrastructure manufacturer, has reported a net profit of EUR937 million in the first nine months of the year, compared to EUR812 million in the previous year. Sales have also increased by 2.5% to reach EUR6.31 billion. However, the company has revised its sales growth target for the year and now expects constant-currency sales growth at around 5%, excluding impacts from Russia. Legrand has also adjusted its operating margin guidance to between 20.5% and 21%. The company’s sales growth has been driven by Europe, which represents 42% of its revenue, thanks to growth in energy-efficiency solutions, data centers, and connected products. Despite the positive results, Legrand anticipates that its fourth-quarter results will be affected by its recent exit from Russia. Additionally, the company has acquired ZPE Systems, a California-based specialist in secure serial console servers and services routers, to expand its offerings for data centers.

Factuality Level: 8
Factuality Justification: The article provides specific financial figures and statements from Legrand regarding their profit, sales, and growth targets. It also mentions the company’s recent exit from Russia and their acquisition of ZPE Systems. The information provided is factual and does not contain any obvious bias or misleading information.
Noise Level: 4
Noise Justification: The article provides information on Legrand’s financial performance and revised sales growth target. It mentions the impact of the building market being in retreat and the company’s exit from Russia. It also includes details about Legrand’s acquisition of ZPE Systems. However, the article lacks in-depth analysis, evidence, and actionable insights. It mainly focuses on reporting financial figures and corporate developments without providing a broader context or exploring the consequences of these events.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the building market and the electrical and digital building infrastructure industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article does not describe any extreme events. It primarily focuses on the financial performance and business activities of Legrand, a French electrical and digital building infrastructure manufacturer.
Public Companies: Legrand (N/A)
Private Companies: ZPE Systems
Key People:

Reported publicly: www.marketwatch.com