Automotive and industrial supplier Schaeffler has had a good start in 2016. At EUR 3.3 billion, revenue for the first quarter of 2016 was slightly above the prior year level. At constant currency, the growth rate was 2.4 percent.
The Automotive business reported a growth rate of 2.4 percent compared to the prior year (+5.0 percent at constant currency), once more outpacing the increase in production volumes of passenger cars and light commercial vehicles (+0.9 percent). From a regional perspective, it was primarily strong demand in China and Asia/Pacific that contributed to the additional revenue. The Aftermarket business was also very successful. Schaeffler AG CEO Klaus Rosenfeld said: “Despite the challenging environment, 2016 has started off well for us. At constant currency, our Automotive business continues to grow significantly more rapidly than the market”.
Revenue in the Industrial business decreased by 6.9 percent (-5.5 percent at constant currency). While certain sectors, such as wind energy and two wheelers, reported considerable growth rates, the low commodities and soil price and the resulting economic uncertainties have adversely affected revenue, especially in the raw materials sector and the distribution business. Klaus Rosenfeld commented: “The environment in the industrial business remains demanding. We are continuing to work diligently on improving the efficiency and competitiveness of our Industrial business under our ‘CORE’ program”.
Trends in the four Schaeffler Group regions’ revenue differed. Revenue in Schaeffler’s Europe region was down slightly by 0.5 percent (+0.2 percent at constant currency). The Americas region reported a drop in revenue of 5.6 percent (-0.1 percent at constant currency), a reflection not only of the weak industrial business but also of the uncertain economic situation in Brazil. Driven by the buoyant Automotive business, revenue in the Greater China and Asia/Pacific regions increased significantly by 5.5 percent (+8.0 percent at constant currency) and 9.9 percent (+13.4 percent at constant currency) despite the adverse impact of currency translation.
The company confirmed its guidance for 2016 as a whole. The Schaeffler Group continues to anticipate revenue growth of 3 to 5 percent at constant currency, an EBIT margin of 12 to 13 percent before special items, and a free cash flow of approximately EUR 600 million for the year as a whole.
