Global automotive and industrial supplier Schaeffler presented its interim report for the first nine months of 2020 today. The Schaeffler Group generated 8,971 million euros in revenue during the period (prior year: 10,839 million euros). As a result of lower demand due to the coronavirus pandemic, revenue for the period decreased considerably at constant currency, falling by 15.4 percent; in the third quarter, demand improved primarily due to the recovery at the two Automotive divisions, reducing the decline from the third quarter of the prior year to only 2.6 percent. The revenue decrease during the reporting period was driven by volume-related revenue declines at all three divisions. The impact of the pandemic on the four regions varied. The Greater China region reported constant-currency revenue growth of 8.1 percent for the reporting period due to the recovery emerging there in the second quarter; its third-quarter growth rate from the prior year quarter was 16.5 percent. The remaining three regions each experienced a considerable constant-currency revenue decrease for the first nine months, amounting to 22.6 percent in the Europe region, 18.4 percent in Americas, and 19.3 percent in Asia/Pacific.
The Schaeffler Group earned 385 million euros in EBIT before special items in the first nine months of 2020, considerably less than in the prior year (883 million euros). This represents an EBIT margin before special items of 4.3 percent (prior year: 8.1 percent).EBIT for the reporting period was adversely affected by 798 million euros (prior year: 88 million euros) in special items. These included an impairment of goodwill allocated to the Automotive Technologies division by 249 million euros recognized in the first quarter. Special items also comprise 549 million euros in expenses incurred to expand the programs RACE (Automotive Technologies division), GRIP (Automotive Aftermarket division), and FIT (Industrial division), especially in connection with downsizing the workforce to adjust excess structural capacity as communicated in September. Including these special items, EBIT amounted to -413 million euros (prior year: 795 million euros).
Strong Q3 results, break-even operating earnings at Automotive Technologies
The Automotive Technologies division generated 5,429 million euros in revenue (prior year: 6,772 million euros) in the first nine months of 2020. At constant currency, revenue decreased considerably from the prior year, falling by 18.2 percent mainly driven by volumes. Following a slump in global automobile production in the first half of 2020 as a result of the coronavirus pandemic, the third quarter saw demand recover considerably, especially in the Greater China and Americas regions. Since global automobile production declined by 23 percent during the reporting period, Automotive Technologies division outperformance for the same period was approximately 5 percentage points.The significant decline in revenue in the first nine months of 2020 affected all regions except Greater China. In the Europe region, revenue fell by 27.7 percent at constant currency. The Americas region reported 20.7 percent less revenue at constant currency, and the decline in Asia/Pacific amounted to 20.1 percent. The Greater China region increased its revenue by 4.1 percent at constant currency. Following a slight decline in revenue of 2.2 percent at constant currency in the first half of 2020, this region’s revenue was up 14.2 percent at constant currency in the third quarter, driven by a considerable recovery of demand.
Within the four business divisions (BDs), all of which experienced falling revenue, revenue growth was reported by the wet double clutches product group – primarily driven by strong demand in Greater China – and the electric axle drives product group in Europe (both E-Mobility BD).
The division broke even in the first nine months, generating EBIT before special items of 0 million euros (prior year: 379 million euros). This resulted in an EBIT margin before special items of 0 percent for the same period, considerably less than the 5.6 percent reported in the prior year. We have enough stock for FAG 6004.2ZR.C3 ball bearings , if you interested , pls click here :
The key figures for the three divisions are as follows:
Klaus Rosenfeld, CEO of Schaeffler AG, stated: “The third quarter has seen a considerable recovery compared to the first six months; this is illustrated especially by our improved EBIT margin, and also by our strong free cash flow. Particularly the two Automotive divisions benefited from the upturn in demand, allowing them to help stabilize the Schaeffler Group’s earnings. However, given the persistently high uncertainty regarding the further course of the coronavirus pandemic and also with a view to new lockdown measures in certain markets, it would be premature to assume that the crisis is over. Therefore, we have to remain vigilant and consistently continue to implement the measures adopted to strengthen the Schaeffler Group’s competitiveness and ability to realize future opportunities.”
Forward-looking statements and projections
Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.