The ratings on Schneider Electric S.A. (Schneider), a major world player in electrical distribution, industrial control, and automation, reflect the group's strong market positions and extensive end-market and geographic diversity. These strengths are tempered, however, by the cyclicality of Schneider's end markets and by the group's acquisitive strategy. Sales reached €9.8 billion in 2001, about 70% of which were derived from electrical activities--where turnover increased by 1.6%--and 30% from automation, which suffered a 5.9% drop like for like. Although global turnover showed strong resilience amid very challenging market conditions in 2001, declining by a modest 0.4% (like for like), sales followed very different trends across the group's geographic markets: a dramatic 10% drop in North America (31% of sales), reflecting
