The automotive and industrial supplier in Herzogenaurach Schaeffler is cautious about the current year after a drop in profits. The company announced on Tuesday that higher wage increases and rising energy costs are likely to weigh on the margin. Before special items, Schaeffler is aiming for a profit margin of 5.5 to 7.5 percent. In 2022, the return on sales was 6.6 percent, 2.2 percent below the previous year’s level.
The figures and the outlook were not well received on the stock exchange. The Schaefflershare
fell almost 9 percent at the top and was the bottom of the SDax. Recently, however, the share had recovered well: Since the lows last September, the price has still increased by more than half. In the current year, including the setback on Tuesday, there is still an increase of over 7 percent.
Schaeffler boss Klaus Rosenfeld (54) referred to the distortions caused by the war in the Ukraine or the corona lockdowns in China. “The margin is lower than in previous years and not what we are aiming for in the long term. But looking ahead to 2022, we can live with that.”
At almost 1.1 billion euros, adjusted operating profit was 14.4 percent lower than a year earlier. Consolidated profit slipped by a good quarter to 557 million euros, partly because of higher costs. In addition to the higher costs for material and energy, distortions in the global supply chains also played a role. Rosenfeld said that the works did not leave their mark. As an example, he cited the conversion of the Eastern European production facilities from Russian steel to steel from China. “In an environment where you have to constantly put the plants under stress, there are additional costs.”
Revenue should increase more slowly
In terms of sales, Schaeffler expects an increase of 5 to 8 percent in 2023; In 2022, currency-adjusted sales increased by 9.4 percent to 15.8 billion euros. The company benefited from higher demand in both the automotive and industrial businesses. In addition, it has been possible to increasingly pass on increased procurement costs to the market.
Schaeffler generates most of its revenue in the traditionally comparatively low-margin automotive supplier business; the industrial division currently has revenues of almost 4.3 billion euros. Among other things, it manufactures drive systems for wind turbines. Recently, the division was expanded with several acquisitions. Rosenfeld announced further acquisitions, which are likely to be on a smaller scale.