Global automotive and industrial supplier Schaeffler presented its results for 2018 today. The Schaeffler Group’s revenue for the reporting period amounted to approximately 14.2 billion euros (prior year: approximately 14.0 billion euros). At constant currency, revenue increased by 3.9 percent during this period. All three divisions and all four regions contributed to the group’s constant currency revenue growth. The Greater China region once more reported the highest revenue growth rate, albeit with considerably less momentum than in previous years. The Schaeffler Group generated earnings before financial result and income taxes (EBIT) before special items of 1,381 million euros in 2018, (prior year: 1,584 million euros), less than in the prior year. This represents an EBIT margin before special items of 9.7 percent (prior year: 11.3 percent).
Net income attributable to shareholders of the parent company for the reporting period amounted to 881 million euros, falling short of the prior year level (980 million euros). Earnings per common non-voting share were 1.33 euros (prior year: 1.48 euros). On that basis, Schaeffler AG’s Board of Managing Directors will propose a dividend of 55 cents to the annual general meeting. This represents a dividend payout ratio of approximately 40 percent (prior year: approximately 35 percent) of net income attributable to shareholders before special items.
Klaus Rosenfeld, CEO of Schaeffler AG, commented on the performance of the business in 2018: “Following a good first six months for the Schaeffler Group, market conditions in the global automotive business deteriorated considerably during the second half of 2018. This put pressure on our earnings. The Industrial division’s very strong development over the course of 2018, which has partially offset the weaker performance of the two Automotive divisions, was encouraging. It proves that our positioning as a global automotive and industrial supplier is invaluable.”
Klaus Rosenfeld was not satisfied, however, with the Automotive OEM division’s earnings. “The decrease in Automotive OEM division earnings resulted mainly from the difficult competitive and market environment and the growing pressure to change. However, there are also a number of homegrown factors we need to address. That is why we have launched the program RACE, which is aimed at increasing efficiency and optimizing the portfolio. If we are going to improve our productivity and competitiveness, we need more focus and more speed.”
The objectives and measures of RACE are described in more detail in the press and IR release also issued today.
Please click here to view the full press release.
SOURCE: Schaeffler
