08.03.2017
Schaeffler AG DE000SHA0159
DGAP-News: Schaeffler AG: Schaeffler increases net income by 45 %
DGAP-News: Schaeffler AG / Key word(s): Final Results
Schaeffler AG: Schaeffler increases net income by 45 %
08.03.2017 / 08:00
The issuer is solely responsible for the content of this announcement.
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Annual Results 2016
Schaeffler increases net income by 45 %
- Revenue increases by 3.4 % at constant currency - EBIT margin before
special items at 12.7 %
- Automotive business with record results - Realignment of Industrial
division well under way
- Net income rises by 45 % to EUR 859 million - Dividend to increase
by 15 to 50 cents
- Financial debt reduced significantly - Free Cash Flow doubled
- Around EUR 1.1 billion invested - 2,500 new jobs created
- Strategy "Mobility for tomorrow" adopted - Focus on E-Mobility,
Industry 4.0, and Digitalization as key opportunities for the future
HERZOGENAURACH, March 8, 2017. Global automotive and industrial supplier
Schaeffler continued moving along its successful course in 2016. The
company increased its revenue to EUR 13.3 billion (prior year: EUR 13.2
billion). At constant currency, this represents a growth rate of 3.4
percent.
Record results in Automotive business - Realignment of Industrial division
well under way
The Automotive division acted as the main driver behind the company's
performance in 2016, reporting revenue growth of 6.0 percent at constant
currency compared to the prior year. Thus, the Automotive business once
again expanded faster than global production volumes for passenger cars and
light commercial vehicles (+4.8 percent). From a regional perspective,
strong demand in the Greater China region was the main contributor to this
growth. The Aftermarket was also very successful, expanding by 10.8 percent
at constant currency.
The Industrial division declined in a challenging market environment. Its
revenue declined by 4.8 percent (at constant currency). While the wind, two
wheelers, and aerospace sectors were able to grow their revenue, low levels
of demand had an adverse effect on revenue, primarily in the raw materials
and rail sectors.
All regions of the Schaeffler Group contributed to the increase in revenue.
Revenue in the Europe region was up 1.8 percent (at constant currency).
Americas region revenue came in at the prior year level. Driven by the
buoyant Automotive business, revenue in the Greater China and Asia/Pacific
regions increased by 13.3 percent (at constant currency) and 4.7 percent
(at constant currency).
Net income rises by 45 % to EUR 859 million - Dividend to increase by 15 to
50 cents
Earnings before financial result and income taxes (EBIT) before special
items was EUR 1,700 million (prior year: EUR 1,676 million). The EBIT
margin amounted to 12.7 percent on the same basis. Special items of EUR 144
million consisted mainly of provisions for restructuring expenses and legal
risks. Lower interest expenses improved financial result by EUR 206 million
to EUR -341 million (prior year: EUR -547 million). Net income attributable
to shareholders of the parent company increased by 45 percent to EUR 859
million (prior year: EUR 591 million), mainly due to the improvement in
financial result.
In light of this, the Board of Managing Directors is proposing to raise the
dividend from 35 cents to 50 cents per common non-voting share, an increase
of approximately 43 percent over the prior year. The planned dividends
represent a payout ratio of approximately 34 percent of net income
attributable to shareholders before special items (prior year:
approximately 29 percent).
Klaus Rosenfeld, CEO of Schaeffler AG, was pleased with the results for
2016: "2016 was a strong year. We are well-positioned for the future. Our
net income increased by 45 percent to EUR 859 million. The ordinary
dividend shall be increased from 35 to 50 cents per common non-voting
share."
Financial debt reduced significantly - Free Cash Flow nearly doubled
The company lowered its net debt by approximately EUR 2.3 billion over the
course of 2016. Net debt amounted to EUR 2,636 million as at December 31,
2016 (prior year: EUR 4,889 million). This decrease has improved the ratio
of net debt to EBITDA before special items from 2.1x to 1.1x. As a result
of the significant improvement in its financial situation, Schaeffler AG
received an investment grade rating from Moody's in October 2016.
Cash flows from operating activities rose by EUR 504 million to EUR 1,876
million (prior year: EUR 1,372 million). Free cash flow amounted to EUR 735
million, twice that of the prior year (prior year: EUR 370 million). "The
increase in cash flows from operating activities by approximately EUR 500
million is primarily due to better operating results and lower interest
payments as a result of the reduction in our debt," explained CFO Ulrich
Hauck.
Around EUR 1.1 billion invested - 2,500 new jobs created
In 2016, capital expenditures increased by EUR 121 million to EUR 1,146
million (prior year: EUR 1,025 million). The capex ratio, i.e. capital
expenditures as a percentage of revenue, was 8.6 percent (prior year: 7.8
percent) of consolidated revenue in 2016. Capital expenditures were mainly
made in the regions Europe (EUR 657 million) and Greater China (EUR 234
million) with regard to capacity expansions and to machinery for product
start-ups.
The Schaeffler Group has generated approximately 2,500 new jobs in 2016. As
at December 31, 2016, the group had 86,662 employees, about 3 percent more
than in the prior year. The headcount in Germany increased by about 400 to
approximately 31,200 employees.
Strategy "Mobility for tomorrow" - E-Mobility, Industry 4.0, and
Digitalization
Schaeffler Group adopted its strategy "Mobility for tomorrow", which was
finalized during 2016, and started implementing it. With this strategy, the
company will be focusing on three key issues that are relevant for the
future: E-Mobility, Industry 4.0, and Digitalization.
One of major technological changes in the automotive industry is the
electrification of the drive train. Schaeffler as an automotive supplier
with a high level of manufacturing expertise and understanding of systems
considers this development a challenge, but also a great opportunity. The
number of customer projects and volume production orders for e-mobility
products is growing steadily. Currently Schaeffler Group has gained six
volume production orders for e-axles and hybrid modules from different
customers around the world.
For the topic Industry 4.0, the Schaeffler Group's manufacturing expertise
and understanding of systems are called for, too. Bearings are ideally
suited to generate data. Based on these data, it is possible to gain
insights that can be utilized to create additional benefits and added value
for the customers. Schaeffler Group offers a broad range of solutions in
this area, for example an online condition monitoring system for the rail
industry.
Digitalization not only changes products and production processes, but also
all processes from the development of a product to its end use by the
customer. Thus, one of the key strategic initiatives of Schaeffler Group is
the "Digital Agenda" with four key digital business scenarios (Products &
Services, Machines & Processes, Analyses & Simulation, and User Experience
& Customer Value). With this, Schaeffler plays an active role in shaping
new and expanded business models.
For 2017, the Schaeffler Group anticipates revenue growth of 4 to 5
percent at constant currency. The group expects its Automotive division to
grow faster than global production of passenger cars and light commercial
vehicles in 2017. In the Industrial division, revenue levels are expected
to be at par with prior year. Based on these considerations, the company
expects to again generate an EBIT margin before special items of between 12
and 13 percent as it has in the past. The Schaeffler Group is anticipating
approximately EUR 600 million in free cash flow for 2017.
Rosenfeld concluded: "We started well into the year 2017. However, the
market environment requires flexibility. We think long-term and continue to
focus on quality, technology and innovation. We are well-positioned for the
key topics E-Mobility, Industry 4.0, and Digitalization."
About Schaeffler
The Schaeffler Group is a global automotive and industrial supplier. Top
quality, outstanding technology, and exceptionally innovative spirit form
the basis for the continued success of the company. By delivering high-
precision components and systems in engine, transmission, and chassis
applications, as well as rolling and plain bearing solutions for a large
number of industrial applications, the Schaeffler Group is already shaping
"Mobility for tomorrow" to a significant degree. The technology company
generated sales of approximately EUR 13.3 billion in 2016. With around
86,600 employees, Schaeffler is one of the world's largest family companies
and, with approximately 170 locations in over 50 countries, has a worldwide
network of manufacturing locations, research and development facilities,
and sales companies.
Schaeffler Twitter Facebook YoutubeOur online Annual Report can be found here: www.schaeffler-annual- report.com Contact: Christoph Beumelburg, Senior Vice President Communications, Marketing and Investor Relations, Schaeffler AG, Herzogenaurach Tel. +49 (0)9132 82 5000, e-mail: [email protected] --------------------------------------------------------------------------- 08.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- 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: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Luxemburg End of News DGAP News Service --------------------------------------------------------------------------- 551471 08.03.2017
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