Schneider Electric SE has announced a change in leadership, with Olivier Blum stepping in as the new chief executive officer, replacing Peter Herweck, who held the role for the past 18 months. The Board of Directors stated that this decision was driven by “differences in the execution of the company’s roadmap during a period of significant opportunities.
The French multinational, valued at approximately €140 billion, specializes in electrical equipment and energy efficiency technologies. Olivier Blum, previously head of the energy management division and a member of the Executive Committee since 2014, brings over 30 years of experience within Schneider Electric, including roles as Chief Human Resources Officer and Country President of Greater India.
Board Chairman Jean-Pascal Tricoire voiced his trust in Blum’s leadership, saying, “I am fully confident in his capability to guide Schneider Electric into this next phase of strategic growth.”
Record Sales in the Third Quarter
In Schneider’s latest earnings report, the company revealed record revenues of €9.3 billion for the third quarter, an 8% increase from the previous year. Growth was driven by the Systems and Digital Services segments, particularly within energy management, capitalizing on trends such as digitalization, AI, and the energy transition.
The company also recently acquired U.S.-based Motivair Corporation, which specializes in advanced liquid cooling for data centers. Schneider expects significant growth in this technology as demand for data centers and AI cooling solutions rises.
Recent Regulatory Challenges
On October 30, 2024, Schneider Electric was fined €207 million by the French competition authority for “vertical price-fixing practices” between 2012 and 2018, as part of a larger €470 million penalty also involving Legrand and distributors Rexel and Sonepar. Schneider Electric disputes the ruling, asserting that its distribution practices comply with competition rules and indicating its intention to appeal.
Following these developments, Schneider Electric’s shares were down by approximately 2% in early trading on Monday.
