SHANGHAI, Nov. 20, 2015 /PRNewswire/ -- Global automotive and industrial supplier Schaeffler has maintained its successful business trend. The company increased its revenue for the first nine months of 2015 by 10.6 percent to EUR 10.0 billion. Excluding the impact of currency translation, the growth rate was 4.2 percent.
The Automotive business reported revenue growth of 12.6 percent compared to the prior year (+6.5 percent at constant currency), once more clearly outpacing the increase in global production volumes of passenger cars and light commercial vehicles (+1.2 percent). Product ramp-ups, new customer projects, and capacity expansions at manufacturing locations in the growth regions were the drivers behind this growth. Revenue for the Industrial business was up 5.0 percent. Excluding the favorable impact of currency translation, Industrial division revenue declined by 2.2 %.
Klaus Rosenfeld, CEO of Schaeffler AG, stated: "Our Automotive division continues to perform very well. We were able to once more generate above-average revenue growth in a challenging market environment. The realignment of our Industrial division is on track. We are optimistic that with our program CORE we will be able to gradually improve the profitability in our industrial business".
In August of this year, Schaeffler AG had announced a realignment aimed at improving the efficiency and competitive position of its Industrial business for the long term. The key elements of this realignment are increased sales growth, enhanced delivery performance and service quality, stronger customer orientation as well as cost savings and efficiency improvements.
All four of the Schaeffler Group's regions reported revenue increases during the first nine months of 2015, with currency translation having a favorable impact on non-Euro region revenue. The growth dynamic varied widely across regions. Revenue grew fastest in the Schaeffler Group's Greater China region, rising by 26.3 percent (+5.8 percent at constant currency) over prior year there, followed by the Americas region, where revenue increased by 21.2 percent (+9.8 percent at constant currency). The Asia/Pacific region reported revenue growth of 12.1 percent (+2.4 percent at constant currency), while the Europe region grew its revenue by 3.4 percent (+2.2 percent at constant currency).
The Schaeffler Group's EBIT (earnings before interest and taxes) increased by
1.7 percent to EUR 1.3 billion for the first nine months of 2015 from the prior year period. The company's EBIT margin measured in terms of revenue remained high at 12.5 percent. CFO Dr. Ulrich Hauck explained: "Thanks to our strong Automotive business and good cost discipline we were able to raise our margin compared to the first six months of 2015".
The Schaeffler Group generated cash flows from operating activities of EUR 912 m (prior year: EUR 410 m) for the first nine months of 2015. Capital expenditures were EUR 743 million (prior year: EUR 500 million). The capex ratio (capital expenditures as a percentage of consolidated revenue) amounted to 7.4 percent (prior year: 5.5 percent). The result was positive free cash flow of EUR 192 million, significantly higher than the prior year amount of negative EUR 87 million.
The number of employees has increased by approximately 2,100 staff since the end of 2014, rising to approximately 84,400 at the end of the third quarter of 2015. The Schaeffler Group recruited skilled personnel primarily in production and production-related areas.
Schaeffler AG confirmed its guidance for 2015 as a whole, which it had adjusted on September 21, 2015. "Despite the weaker market trend in the Automotive business in China and worldwide in the Industrial business, we continue to anticipate revenue growth of 4 to 5 percent at constant currency. Our objective of achieving an EBIT margin of 12 to 13 percent before special items remains unchanged," said Rosenfeld.
Key figures
| 1stnine months |
||||
| in EUR millions |
2015 |
2014 |
Change |
|
| Consolidated statement of income |
||||
| Revenue |
9,982 |
9,024 |
10.6 |
% |
| • at constant currency |
4.2 |
% |
||
| EBITDA |
1,765 |
1,703 |
3.6 |
% |
| • in % of revenue |
17.7 |
18.9 |
-1.2 |
%-pts. |
| EBIT |
1,251 |
1,230 |
1.7 |
% |
| • in % of revenue |
12.5 |
13.6 |
-1.1 |
%-pts. |
| Net income 1) |
521 |
439 |
18.7 |
% |
| Basic and diluted earnings per common share (in EUR ) |
0.87 |
0.88 |
-1.1 |
% |
| in EUR millions |
09/30/2015 |
12/31/2015 |
Change |
|
| Consolidated statement of financial position |
||||
| Total assets |
12,450 |
11,617 |
7.2 |
% |
| Shareholders' equity 2) |
631 |
258 |
373 |
EUR millions |
| • in % of total assets |
5.1 |
2.2 |
2.9 |
%-pts. |
| Net financial debt |
5,950 |
5,778 |
3.0 |
% |
| • Net financial debt to EBITDA ratio 3) |
2.7 |
2.7 |
||
| 1st nine months |
||||
| in EUR millions |
2015 |
2014 |
Change |
|
| Consolidated statement of cash flows |
||||
| Cash flows from operating activities 4) |
912 |
410 |
502 |
EUR millions |
| Capital expenditures (capex) 5) |
743 |
500 |
243 |
EUR millions |
| • in % of revenue (capex ratio) |
7.4 |
5.5 |
1.9 |
%-pts. |
| Free cash flow 4) |
192 |
-87 |
279 |
EUR millions |
| Employees |
||||
| Headcount |
84,414 |
81,353 |
3.8 |
% |
| 1) Attributable to shareholders of the parent company. |
||||
| 2) Including non-controlling interests. |
||||
| 3) EBITDA based on the last twelve months. |
||||
| 4) Including a one-time outflow of EUR 371 m for the EU antitrust penalty in the 2ndquarter of 2014. |
||||
| 5) Capital expenditures on intangible assets and property, plant and equipment. |
||||
| 1st nine months |
||||
| Automotive |
2015 |
2014 |
Change |
|
| in EUR millions |
||||
| Revenue |
7,511 |
6,670 |
12.6 |
% |
| • at constant currency |
6.5 |
% |
||
| EBIT |
999 |
946 |
5.6 |
% |
| • in % of revenue |
13.3 |
14.2 |
-0.9 |
%-pts. |
| Prior year information based on 2015 segment structure. |
||||
| 1st nine months |
||||
| Industrial |
2015 |
2014 |
Change |
|
| in EUR millions |
||||
| Revenue |
2,471 |
2,354 |
5.0 |
% |
| • at constant currency |
-2.2 |
% |
||
| EBIT |
252 |
284 |
-11.3 |
% |
| • in % of revenue |
10.2 |
12.1 |
-1.9 |
%-pts. |
| Prior year information based on 2015 segment structure. |
||||
About Schaeffler:
The Schaeffler Group is a leading integrated global supplier to the automotive and industrial sectors. The company stands for top quality, outstanding technology and strong innovative ability. Its precision components and systems for engines, transmissions, and chassis as well as rolling and plain bearing solutions for numerous industrial applications make the Schaeffler Group a key contributor to the "Mobility for tomorrow". The technology company generated sales of approximately EUR 12.1 billion in 2014. With around 84,000 employees, Schaeffler is one of the world's largest family companies and, with approximately 170 locations in 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales companies.
The full interim report as at September 30, 2015 is available for download at www.schaeffler.com/de/ir
Schaeffler shapes the mobility for tomorrow - already today. Learn more!
http://www.schaeffler-mobility.de
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.
