The Schaeffler Group starts the financial year 2022 with a good first quarter and publishes the forecasts for the entire financial year

The global supplier to the automotive and industrial sectors Schaeffler has published its forecasts for the full financial year 2022. On March 8, 2022, the Management Committee of Schaeffler AG suspended the forecasts for the full financial year 2022 adopted on February 22, 2022, when the annual financial statements were being prepared, due to to developments in Ukraine in the days following the approval of such annual financial statements. For the first quarter of 2022, the following financial data has been released:

1) at constant exchange rate; 2) before special effects; 3) cash flow available before inflows and outflows of funds for merger and acquisition activities.

Financial data for the first quarter of 2022

The Schaeffler Group reported a turnover of €3,758 million (previous year: €3,560 million) in the first quarter, representing a turnover growth of 1.9% at constant exchange rates. EBIT before special effects amounted to €258 million (previous year: €397 million), which represents an EBIT margin before special effects of 6.9% (previous year: 11.2%).

In the first quarter, the Schaeffler Group’s free cash flow before inflows and outflows for M&A activities was positive at €14 million (previous year: €130 million).

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1) at constant exchange rate; 2) before special effects.

The Automotive Technologies division generated a turnover of 2,293 million euros (previous year: 2,281 million euros). At a constant exchange rate, the volume of business has decreased by 3.2% compared to the previous year. EBIT before special effects amounted to €80 million (previous year: €240 million). EBIT margin before special effects stood at 3.5%, considerably lower than the previous year’s extraordinary strength of 10.5%.

The Automotive Aftermarket division posted a turnover of €463 million (previous year: €444 million) in the reporting period, representing a turnover growth of 2.1% at constant exchange rates. The division generated an EBIT before special items of €63 million (previous year: €58 million). This represents an EBIT margin before special effects of 13.6% (previous year: 13.1%).

The Industrial division reported a turnover of €1,002 million (previous year: €836 million) in the first quarter, representing a turnover growth of 15.7% at constant exchange rates. The division generated an EBIT before special items of €115 million (previous year: €98 million), which represents an EBIT margin before special items of 11.4% (previous year: 11.8%).

Forecasts for the entire financial year 2022

The new forecasts are based on the assumption that growth in the world economy as a whole will slow down markedly, and this will have an impact on the Schaeffler Group’s sales and contracting markets. The economic sanctions imposed in the context of the war in Ukraine, the impact on supply chains, the prices of raw materials and energy, as well as transport costs, have been taken into account according to the current situation until the end of the year. ooh The influence of the coronavirus pandemic, which has not yet been overcome, on the Group’s value creation chain has been considered at the current level. For China, economic activity is assumed to have normalized by the end of June 2022.

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1) at constant exchange rate; 2) before special effects; 3) cash flow available before inflows and outflows of funds for merger and acquisition activities.

The Schaeffler Group expects full-year turnover growth of 6 to 8% at constant exchange rates in 2022. In addition, the Schaeffler Group expects to generate an EBIT margin before special effects of 5 to 7% on the entire exercise. In addition, the Schaeffler Group anticipates a free cash flow before inflows and outflows of funds for merger and acquisition activities of more than €250 million in 2022, but lower than in the previous year.

For divisions, the forecast KPIs are as follows:

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Current market evolution hypotheses for 2022

  • Automotive Technologies: LVP4) around the level of the previous year (previous year: €77.2 million)
  • Automotive Aftermarket: global GDP increase of 3 to 3.5%
  • Industrial: increase in relevant industrial production from 3.5 to 4%

1) at constant exchange rate; 2) before special effects; 3) cash flow available before inflows and outflows of funds for mergers and acquisitions activities; 4) LVP: world production of passenger cars and light commercial vehicles.

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