EQS-News: Schaeffler AG: Schaeffler Group closes 2022 with solid earnings
EQS-News: Schaeffler AG
/ Key word(s): Annual Results
In 2022 the Schaeffler Group generated earnings before financial result and income taxes (EBIT) of 974 million euros (prior year: 1,220 million euros), a figure that was affected by 72 million euros in special items. EBIT before special items amounted to 1,046 million euros (prior year: 1,222 million euros). This represents an EBIT margin before special items of 6.6 percent (prior year: 8.8 percent), which was at the upper end of the guidance despite the challenging environment. The EBIT margin before special items declined predominantly due to higher material and energy prices, disrupted global supply chains, and market- and environment-based inefficiencies. Net income attributable to shareholders of the parent company amounted to 557 million euros for the reporting period, following 756 million euros in the prior year. Earnings per common non-voting share were 0.84 euros (prior year: 1.14 euros). On that basis, the Board of Managing Directors and the Supervisory Board will propose a dividend of 45 cents per common non-voting share (prior year: 50 cents) to the annual general meeting. This represents a dividend payout ratio of approximately 48 percent (prior year: approximately 44 percent) of net income attributable to shareholders before special items of 610 million euros (prior year: 748 million euros).
Automotive Technologies – 5 billion euros in order intake at E-Mobility In total, the Automotive Technologies division outperformed global automobile production of passenger cars and light commercial vehicles by 1.5 percentage points driven by the positive contributions from the Europe and Americas regions. E-Mobility and Chassis Systems experienced especially strong growth throughout the reporting period due to trends in their specific markets, with both a market-driven increase in volumes and product ramp-ups contributing to the high growth rates. One important milestone here was the start of production of the first rear-wheel steering system in 2022. The Europe region increased its revenue by 11.8 percent at constant currency and grew the most in absolute terms. In the Americas and Asia/Pacific regions, revenue was up 14.1 percent and 4.5 percent at constant currency, respectively, while the Greater China region reported a constant-currency decline of 1.4 percent. The E-Mobility business division increased its order intake to 5.0 billion euros. The division as a whole won 12.3 billion euros in orders. EBIT before special items amounted to 292 million euros (prior year: 544 million euros). The EBIT margin before special items was 3.1 percent (prior year: 6.4 percent). Automotive Aftermarket – Revenue increases to more than 2 billion euros Europe region revenue grew by 6.4 percent at constant currency. Overall, the considerable decline in volumes in the Independent Aftermarket business in the Central & Eastern Europe subregion due to the war in Ukraine was more than offset by higher volumes in the Western Europe and Middle East & Africa subregions in 2022. In the Americas, Greater China, and Asia/Pacific regions, revenue was up 6.5 percent, 6.7 percent, and 16.4 percent, respectively, at constant currency. EBIT before special items of 255 million euros was flat with prior year (prior year: 256 million euros). The decrease in EBIT margin before special items to 12.5 percent from the prior year (13.9 percent) was primarily due to higher selling expenses, which were partly attributable to favorable one-off items in the prior year. As adjustments to sales prices largely offset considerably increased procurement costs, a gross margin at the level of the prior year was achieved. Industrial division – Strengthened by acquisitions In the Europe region, revenue was up 20.4 percent at constant currency, primarily driven by volume growth in the business with distributors (Industrial Distribution) and in the Industrial Automation sector cluster. In the Americas region, revenue rose by 11.6 percent at constant currency during the year, while the Greater China region generated 8.8 percent in additional revenue at constant currency compared to the prior year. The additional revenue in the Greater China region resulted primarily from increased volumes in the Raw Materials and Industrial Automation sector clusters. In the Asia/Pacific region, revenue increased by 13.2 percent at constant currency, mainly due to volume growth in the business with distributors (Industrial Distribution) and in the Two Wheelers sector cluster. EBIT before special items rose by 18.3 percent to 499 million euros (prior year: 421 million euros). The EBIT margin before special items amounted to 11.7 percent (prior year: 11.8 percent). Focused acquisitions were made during the year to further strengthen the Industrial division, primarily in the Industrial Automation sector cluster. The acquisition of Melior Motion GmbH (since December 1, 2022: Schaeffler Ultra Precision Drives GmbH) further expands the division's portfolio and market position in the high-growth field of robotics. Additionally, the linear business was significantly strengthened by the acquisition of the Ewellix Group, which closed on January 3, 2023. The Ewellix Group is a leading global manufacturer and supplier of drive and linear motion solutions. Its core products are used in a wide range of applications and equipment including medical technology, mobile machinery, assembly automation and robotics, and various other areas of industry. In a transaction that closed on December 1, 2022, the Schaeffler Group acquired 100 percent of the shares of CERASPIN S.à.r.l., expanding the Industrial division’s technology portfolio in the area of high-quality ceramic components mainly used in strategic growth areas.
Free cash flow before M&A of 280 million euros – Strong balance sheet and liquidity position Net financial debt increased to 2,235 million euros as at December 31, 2022 (December 31, 2021: 1,954 million euros). The gearing ratio, i.e., the ratio of net financial debt to shareholders’ equity, declined to 54 percent (December 31, 2021: approximately 62 percent). The Schaeffler Group, which had approximately 14.3 billion euros in total assets as at December 31, 2022 (prior year: approximately 14.4 billion euros), employed a workforce of 82,773 as at that date (prior year: 82,981), a slight reduction of approximately 0.3 percent. Claus Bauer, CFO of Schaeffler AG, says, “In a difficult environment, Schaeffler has met all group-level financial targets set for 2022. Despite higher capital expenditures for product ramp-ups and capacity expansions, for instance, as well as a sales-driven increase in inventories, we have generated solid free cash flow.” Cautious outlook for 2023
“The Schaeffler Group has once again demonstrated resilience in a challenging environment in 2022 and generated solid results. All divisions and all regions grew, with the substantial contribution by the Industrial division especially worth highlighting,” says Klaus Rosenfeld, CEO of Schaeffler AG. And further, commenting on the business of the divisions: “We are resolutely pushing ahead with the transformation of the Automotive Technologies division. The E-Mobility order intake of 5 billion euros in 2022 speaks for itself. Automotive Aftermarket is profiting from current market conditions. In our Industrial division, we have supplemented our considerable global organic growth with acquisitions. Sustainability and digitalization remain of key strategic importance to the Schaeffler Group.” You can find our annual report here: www.schaeffler-annual-report.com Our digital press kit is available here: www.schaeffler.com/apc
[1] at constant currency [2] LVP growth: global growth in production of passenger cars and light commercial vehicles [3] before special items [4] before cash in- and outflows for M&A activities [5] Includes content supplied by S&P Global © [IHS Markit Light Vehicle Production Forecast (Base), January 2023]. All rights reserved. [6] Includes content supplied by S&P Global © [IHS Markit Vehicles in Operation (VIO) Forecast, November 2022]. All rights reserved.
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.
Schaeffler Group – We pioneer motion As a leading global supplier to the automotive and industrial sectors, the Schaeffler Group has been driving forward groundbreaking inventions and developments in the fields of motion and mobility for over 75 years. With innovative technologies, products, and services for electric mobility, CO₂-efficient drives, chassis solutions, Industry 4.0, digitalization, and renewable energies, the company is a reliable partner for making motion and mobility more efficient, intelligent, and sustainable – over the entire life cycle. The technology company manufactures high-precision components and systems for powertrain and chassis applications as well as rolling and plain bearing solutions for a large number of industrial applications. The Schaeffler Group generated sales of EUR 15.8 billion in 2022. With around 83,000 employees, Schaeffler is one of the world’s largest family companies. With more than 1,800 patent applications in 2021, Schaeffler is Germany’s third most innovative company according to the DPMA (German Patent and Trademark Office).
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07.03.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Schaeffler AG |
Industriestr. 1-3 | |
91074 Herzogenaurach | |
Germany | |
Phone: | 09132 - 82 0 |
E-mail: | [email protected] |
Internet: | www.schaeffler.com |
ISIN: | DE000SHA0159 |
WKN: | SHA015 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1576023 |
End of News | EQS News Service |
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1576023 07.03.2023 CET/CEST
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