11.08.2016
Schaeffler AG DE000SHA0159
DGAP-News: Schaeffler AG: Schaeffler with significant earnings increase in H1 2016
DGAP-News: Schaeffler AG / Key word(s): Half Year Results
Schaeffler AG: Schaeffler with significant earnings increase in H1 2016
11.08.2016 / 08:01
The issuer is solely responsible for the content of this announcement.
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Half year results 2016
Schaeffler with significant earnings increase in H1 2016
- Revenue increases by approximately 3 % to EUR 6.7 billion at constant
currency
- EBIT margin improves to 12.8 %
- Net income increases by approximately 60 % to EUR 494 billion
- Guidance for 2016 confirmed
HERZOGENAURACH, August 11, 2016. Global automotive and industrial supplier
Schaeffler continues to grow profitably. It generated EUR 6.7 billion in
revenue in the first six months of 2016. At constant currency, the growth
rate was 2.9 percent. The company's EBIT margin improved by 0.5 percentage
points to 12.8 percent (prior year: 12.3 percent before special items).
There were no special items during the first half of 2016. Net income
increased by approximately 60 percent to EUR 494 million (prior year: EUR
309 million). "Our business has developed well during the first half of
2016. We are growing, and all of our relevant earnings indicators have
improved," Klaus Rosenfeld, CEO of Schaeffler AG, said on Thursday during
the presentation of the half year results for 2016.
The Automotive business reported growth of 5.4 percent at constant currency
compared to the prior year (+2.2 percent including the impact of currency
translation), once more outpacing the increase in production volumes of
passenger cars and light commercial vehicles (+2.2 percent). From a
regional perspective, strong demand in Greater China and Asia/Pacific were
the main contributors to the revenue increase.
In a challenging market environment, Industrial business revenue for the
second quarter 2016 remained stable compared to the first quarter. This
trend was due in large part to the Europe region, which generated slight
growth. Revenue for the first half of 2016 declined by 4.9 percent at
constant currency (-7.2 percent including the impact of currency
translation) compared to the prior year period. While certain sectors, such
as wind, two wheelers, and aerospace, have grown considerably, revenue was
adversely affected by economic uncertainties, especially in the raw
materials sector and in Industrial Distribution.
Revenue trends differed across the four Schaeffler Group regions. Revenue
in the Europe region was up 2.7 percent at constant currency (+1.4 percent
including the impact of currency translation). The Americas region reported
slight revenue growth of 0.3 percent at constant currency (-5.5 percent
including the impact of currency translation), a reflection not only of the
weak industrial business but also of the uncertain economic situation in
Brazil. Driven by the buoyant Automotive business, revenue in the Greater
China and Asia/Pacific regions increased at constant currency, rising by
5.3 percent (+0.9 percent including the impact of currency translation) and
5.9 percent (+2.0 percent including the impact of currency translation),
respectively.
EBIT (earnings before interest and taxes) rose by 5.0 percent to EUR 859
million compared to the prior year. The EBIT margin increased from 12.3
percent to 12.8 percent. The Automotive business EBIT margin amounted to
14.3 percent in the first half of 2016 (prior year: 13.0 percent). The
Industrial EBIT margin for the same period was 7.8 percent (prior year:
10.1 percent). Following 6.4 percent for the first quarter, the Industrial
division's EBIT margin improved significantly to 9.3 percent in the second
quarter, due, among other things, to the measures taken in connection with
the CORE efficiency program.
Net income amounted to EUR 494 million (prior year: EUR 309 million). Klaus
Rosenfeld commented: "We increased our net income by approximately 60
percent during the first six months. In addition to the strong operating
results, this increase was also driven by the considerable reduction in
financial expenses." Net financial result improved from minus EUR 337
million to minus EUR 153 million. The prior year financial result had
reflected one-time charges related to the early redemption of bonds.
The Schaeffler Group increased its cash flows from operating activities to
EUR 777 million in the first six months of 2016 (prior year: EUR 422
million). Capital expenditures were EUR 561 million (prior year: EUR 501
million). The capex ratio for the first half of 2016, i.e. capital
expenditures as a percentage of consolidated revenue, amounted to 8.4
percent (prior year: 7.5 percent). Most capital expenditures were made in
the Europe and Greater China regions. "Based on our good operating results,
free cash flow increased considerably over the prior year, rising to EUR
216 million despite our high level of capital expenditures," explained CFO
Dr. Ulrich Hauck. In the prior year, free cash flow amounted to EUR 72
million and was affected by one-time outflows related to the early
redemption of bonds.
At EUR 4.9 billion, net financial debt remained unchanged from year-end.
The ratio of net debt to EBITDA before special items improved to 2.0
(December 31, 2015: 2.1).
The Schaeffler Group created more than 1,000 new jobs worldwide during the
first half of 2016, employing a total of approximately 85,200 staff as at
June 30, 2016 (year-end 2015: approximately 84,200).
The company confirmed its guidance for 2016 as a whole. "We are confident
that we are well on our way to meeting our annual targets for 2016,"
Rosenfeld said. For 2016 as a whole, the Schaeffler Group expects revenue
growth of 3 to 5 percent at constant currency, an EBIT margin of 12 to 13
percent before special items, and free cash flow of approximately EUR 600
million.
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.
The full interim report as at June 30, 2016 is available for download at:
www.schaeffler.com/ir
***
About Schaeffler
The Schaeffler Group is a leading global integrated automotive and
industrial supplier. The company stands for the highest quality,
outstanding technology, and strong innovative ability. The Schaeffler Group
makes a key contribution to "mobility for tomorrow" with 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 technology company generated sales of
approximately EUR 13.2 billion in 2015. With around 85,000 employees,
Schaeffler is one of the world's largest family companies and, with
approximately 170 locations in more than 50 countries, has a worldwide
network of manufacturing locations, research and development facilities,
and sales companies.
Contact:
Christoph Beumelburg, Senior Vice President Communications, Marketing and
Investor Relations, Schaeffler AG
Tel. +49 9132 82-4440, email: [email protected]
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11.08.2016 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.
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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, Munich,
Stuttgart, Tradegate Exchange; Luxemburg
End of News DGAP News Service
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