French automation vendor Schneider Electric has slashed its organic growth forecast for the year by a third, to 5.5%, citing “the worsening economic situation.”
“Business conditions for Schneider Electric decelerated in October, but the deterioration was particularly sharp in November,” CEO Jean Pascal Tricoire said in a statement. “We do not anticipate the trend to improve in December.”
The Rueil-Malmaison-based company said the slowdown hit “across geographies” and cited “the cautious attitude of end users to make investment decisions, which has been amplified by a rapid destocking at some of the distributors.”
Schneider’s slash echoes a recent warning from rival automation supplier Emerson Electric, which in an SEC filing earlier this month noted a 6% drop in October sales. The news out of Schneider also came about a month after German automation giant Siemens reported that new orders grew by only 4% in its fourth quarter, ended Sept. 30. Honeywell, meanwhile, announced earlier this week that it would eek out 6% growth in its final quarter, which ends Dec. 31, but that it expects sales to decline in 2009.