The Schaeffler Group's revenue climbed by 9.8 % excluding the impact of currency translation to EUR 4.056 bn in the second quarter (prior year period: 3.790 bn euros). Revenue for the first half of 2023 amounted to EUR 8.208 bn (prior year: EUR 7.548 bn). This corresponds to a currency-adjusted increase of 10.1%. The growth is primarily attributable to volume increases in the Automotive divisions. Positive sales price effects in all three divisions had an additional impact on the sales trend.

In the Industrial division, the currency-adjusted increase in sales revenue of 10.6% was primarily due to the contribution of the Ewellix Group, which was acquired at the beginning of the year, as well as positive sales price effects.

All regions contributed to sales growth in the first half of 2023. Europe made the strongest contribution with currency-adjusted growth of 14.0 %. In the Asia/Pacific region, currency-adjusted sales rose by 10.9%, while currency-adjusted sales in the Greater China and Americas regions were up 6.6% and 5.6% respectively on the previous year.

EBIT before special items amounted to EUR 625 million in the first half of the year (previous year: EUR 458 million).

Free cash flow before cash inflows and outflows for M&A activities amounted to EUR 29 million in the first six months of the year (previous year: minus EUR 204 million).

Industrial division: sales up, profit down

At EUR 2.237 billion, sales in the Industrial division were up 10.6% (adjusted for currency effects) on the previous year (EUR 2.065 billion). This growth is primarily due to the contribution of the Ewellix Group, which was acquired at the beginning of the year and is reflected in the Industrial Automation sector cluster. In addition, positive sales price effects in particular contributed to growth.

By region, the Americas recorded the highest growth in the first six months with an increase of 15.0 %, followed by Greater China (+11.4 %), Europe (+10.1 %) and Asia/Pacific (+5.4 %).

Earnings before special items in the Industrial division amounted to 225 million euros (previous year: 238 million euros). This corresponds to an EBIT margin before special items of 10.1% (HY1/2022: 11.5%). According to Schaeffler, the decline is due to the development of the gross margin, which was impacted by the revenue mix, among other things, as well as higher costs, including those related to the implementation of relocations. The Group is planning a package of measures for the second year, including a reduction in inventories and increased cost-cutting measures.

Forecast for 2023 raised

The forecast was adjusted based on business performance in the first half of 2023. The Group continues to expect sales growth of 5% to 8% (adjusted for currency effects) for the financial year. At the same time, the company has raised its forecast for the EBIT margin before special items from 5.5 to 7.5% to 6 to 8%. Schaeffler expects to generate free cash flow before cash in- and outflows for M&A activities of EUR 300 to 400 million in 2023 (previously EUR 250 to 350 million).

For the Industrial division, the company now expects revenue growth of 6 to 8% excluding the impact of currency translation in 2023 (previously 9 to 11%) and an EBIT margin before special items of between 9 and 11% (previously 11 to 13%).