The Herzogenaurach-based Schaeffler Group has presented its interim report for the first half of 2024. In the first six months, the Group reported revenue growth of 2% at constant currency to EUR 8.276 billion (prior year: EUR 8.208 billion). The increase in volume is primarily attributable to the Vehicle Lifetime Solutions division. The Automotive Technologies division also made a slight contribution to growth. The trend in the Bearings & Industrial Solutions division had the opposite effect. In the second quarter of 2024, currency-adjusted sales revenue increased by 4.2% to € 4.191 billion (previous year: € 4.056 billion).

In the first half of the year, the Group generated EBIT before special items of EUR 525 million (previous year: EUR 624 million). This corresponds to an EBIT margin before special items of 6.3% (previous year: 7.6%). The decline in the EBIT margin before special items was due in particular to the business development of the Bearings & Industrial Solutions division and the at-equity contribution of Vitesco Technologies Group AG (Vitesco).

Automotive business with growth, industrial business in the opposite direction

In the Automotive Technologies division, the currency-adjusted growth of 1.5% in the first half of the year was primarily attributable to volume increases in the E-mobility business division in the Europe and Americas regions. The currency-adjusted increase in sales revenue of 17.6% in the Vehicle Lifetime Solutions division resulted in particular from volume effects in the Independent Aftermarket business in the Europe and Americas regions.

The Bearings & Industrial Solutions division recorded a currency-adjusted decline in sales of 3.9% in the first half of 2024. This was mainly due to volume effects in the Europe region in the Industrial Automation sector cluster and volume effects in the Greater China region in the Wind sector cluster.

A mixed picture emerged in the regions in the first half of 2024: While the Europe (+2.2%), Americas (+5.7%) and Asia/Pacific (+1.1%) regions recorded currency-adjusted revenue growth, revenue in the Greater China region fell by 1.7 percentage points on a currency-adjusted basis in the same period.

Integration with Vitesco on schedule

In recent weeks, Schaeffler and Vitesco have reached further key integration milestones on their way to becoming a joint motion technology company. Following the announcement of the organizational and management structure at the first level below the Executive Board in mid-March, the organizational structure was further differentiated. In addition, the joint business plan was drawn up and the infrastructural connection was further prepared.

"The integration of Vitesco is proceeding successfully. Our motto 'Stronger together' is paying off. We are on the home stretch to complete the merger of the two companies as planned on October 1, 2024. With our four strong divisions and the four regions, we will continue to consistently expand our competitiveness and create the leading motion technology company," said Klaus Rosenfeld, CEO of Schaeffler AG.

Combined forecast adjusted

In announcing its consolidated financial statements for 2023, Schaeffler issued a combined earnings forecast for the year 2024 that includes the Schaeffler Group's earnings for the first nine months and assumes that Vitesco will be fully consolidated as at October 1, 2024.

In connection with the adjustment of Vitesco's earnings guidance announced on July 22, 2024, the Board of Managing Directors of Schaeffler AG has decided to adjust the combined guidance for the year 2024 as well.

Those responsible are assuming significant revenue growth. However, the EBIT margin has been adjusted from previously 6 to 9% to 5 to 8%. The expected free cash flow has been lowered from previously 300 to 400 million euros to 200 to 300 million euros.

The Bearings & Industrial Solutions division in detail - automation in decline

The Bearings & Industrial Solutions division generated sales revenue of € 3.367 billion in the first six months of the year (previous year: € 3.556 billion). The currency-adjusted decline in sales revenue of 3.9% was primarily due to volume effects in the Europe and Greater China regions. These developments were mainly a result of the weak market environment.

In the reporting period, currency-adjusted sales revenue in the Europe region fell by 6.5%, mainly due to a market-related decline in the Industrial Automation sector cluster. While currency-adjusted revenue growth of 3.4% was achieved in the Americas region, revenue in the Greater China region was down 7.9% on the previous year on a currency-adjusted basis due to the local competitive situation in the wind sector cluster. In the Asia/Pacific region, currency-adjusted sales in the first six months were on a par with the same period of the previous year.

The Bearings & Industrial Solutions division generated EBIT before special items of 185 million euros in the reporting period (previous year: 290 million euros). This corresponds to an EBIT margin before special items of 5.5% (previous year: 8.2%). The decline in the EBIT margin before special items was due in particular to volume and sales price effects.