By Giulia Petroni

 

Schneider Electric SE said Wednesday that revenue rose in the first quarter and that it intends to sell Russian operations to local management.

The French group said revenue came in at 7.57 billion euros ($8.09 billion), up 9.8% organically and supported by strong demand across all end markets.

Following its decision to hold new investments and international delivery of new project orders to Russia and Belarus due to the war in Ukraine, Schneider Electric said it has now decided to sell its Russia operations to local management.

As a result, it expects to write off up to EUR300 million of net book value and to make a noncash reversal of the currency translation reserve associated with these activities estimated at EUR120 million.

The agreement is subject to the approval of local authorities. Schneider Electric generates approximately 2% of its sales from Russia.

Meanwhile, the company said the Covid-19 lockdown in Shanghai has had a negative impact on some of its factories and distribution centers, and the continuation into April will also affect 2Q revenue in China.

Despite the uncertain macro environment, the company backed its full-year outlook.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

April 27, 2022 01:47 ET (05:47 GMT)

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