The two auto suppliers Vitesco and Schaeffler, who are about to merge, are lowering their annual forecasts due to the weak industry economy. The recovery in the automotive industry is progressing slowly, especially for electric cars, Vitesco announced on Monday evening in Regensburg.
Due to the lower number of orders from car manufacturers, Vitesco is assuming a more significant decline in sales than before and is now expecting 8.1 billion euros. The company had previously forecast 8.3 to 8.8 billion euros, after 9.2 billion euros the year before. The margin based on adjusted earnings before interest and taxes (EBIT) is now expected to increase from 3.7 percent to around 4.0 percent. Vitesco has so far had 4.5 to 5.0 percent on the list here. The new forecasts are below analyst estimates.
According to preliminary calculations, sales fell from 2.4 billion to a good 2 billion euros in the second quarter, as the drive specialist further announced. Sales of electrification components, which are important for the company, are likely to have fallen from 354 million to 316 million euros. Adjusted EBIT increased to around 82 million euros, after 67 million euros in the previous year. This corresponds to a margin of 4.0 percent, compared to 2.9 percent in the previous year.
Investors were disappointed. In an initial reaction, the Vitesco share lost a good three percent on the Tradegate trading platform compared to the closing price in the main Xetra business.
The Franconian automotive and industrial supplier Schaeffler, with which Vitesco is to be merged on October 1st, also lowered its forecast: With continued significant sales growth, the board now expects a combined adjusted EBIT margin of five to eight (previously six to nine) percent . Based on preliminary figures, sales in the second quarter were 4.2 (previous year: 4.1 billion euros), the EBIT margin before special items fell to 4.9 (7.1) percent.