Germany's Schaeffler misses expectations for 2023 core profit (updated)

Schaeffler AG

05/03/2024 08:00

(Adds details on China in 3rd paragraph, details on guidance
and Vitesco in paragraphs 5-7)
       March 5 (Reuters) - German automotive and industrial
supplier Schaeffler AG  SHA_p.DE  reported quarterly adjusted
core profit (EBIT) of 1.19 billion ($1.29 billion) on Tuesday,
weighed down by weak demand in China for the group's Industrial
division. 
     The result missed a consensus of 1.24 billion euros for the
year compiled by Vara Research and supplied by the company.   
    A supplier to machine and vehicle makers, Schaeffler's
fortunes are closely tied to broader industrial activity.
Chinese factory activity has been largely subdued since the
pandemic, according to official surveys, and eurozone
manufacturing PMI has been below 50 since July 2022, indicating
falling activity.  
    Schaeffler's EBIT margin of the year was 7.3%, slightly
below the 7.6% analysts had expected in the Vara poll. 
    Schaeffler expects considerable revenue growth and an EBIT
margin before special items of 6% to 9% for 2024, including the
consolidated accounts of Vitesco  VTSCn.DE , with which
Schaeffler is in the process of merging.
        The ball-bearings specialist 
    said
     it would acquire powertrain supplier Vitesco Technologies
 VTSCn.DE  in October last year, aiming to increase its product
line of parts for electric vehicles.  
  
    The deal, which had been expected to close by January 2024,
will be voted on by the AGMs of each company in April. 


($1 = 0.9219 euros)

 (Reporting by Louis van Boxel-Woolf and Chiara Holzhaeuser,
Editing by Louise Heavens)
 ((Louis.vanBoxel-Woolf@thomsonreuters.com;
Chiara.Holzhaeuser@thomsonreuters.com))