At the end of April, Schaeffler announced its business figures for the past year and thus a double-digit percentage decline in sales. The automotive and industrial supplier was more optimistic for the current year 2021. In an interim statement, the company has now announced its figures for the first quarter: Schaeffler generated 3.560 billion euros in revenue in the first three months of the 2021 financial year. This corresponds to an increase of 11.2% at constant currency compared to the prior-year period (Q1/2020: EUR 3.281 billion). This growth is primarily attributable to the recovery of the Automotive Technologies division, after sales development in the prior-year period was negatively impacted by a sharp decline in automotive production due to the coronavirus pandemic. Automotive Aftermarket and Industrial division revenue increased by 4.0% and 3.9%, respectively, excluding the impact of currency translation compared to the prior year quarter.

The Schaeffler Group generated earnings before interest and taxes (EBIT) and before special items of EUR 403 m in the first three months (Q1/2020: EUR 212 m). This corresponds to an EBIT margin before special items of 11.3% (previous year: 6.5%). The year-on-year improvement is mainly due to economies of scale. In addition, the structural measures introduced in recent years are increasingly taking effect.

Earnings in the reporting period were negatively impacted by one-off effects amounting to EUR 15 million (Q1/2020: EUR 302 million). EBIT amounted to EUR 388 million (Q1/2020: EUR -90 million). This includes expenses for restructuring as part of the divisional sub-programs of Roadmap 2025.

Asia and America as growth drivers

By region, sales revenue in the first quarter rose, in some cases sharply, particularly in the Greater China, Asia/Pacific and Americas regions. In Europe, revenue stagnated and was slightly below the previous year's figure, falling by 0.6% on a currency-adjusted basis. Currency-adjusted sales growth amounted to 57.1% in the Greater China region, 12.2% in Asia/Pacific and 6.7% in the Americas region.

Slight growth for Industrial division

The Industrial division generated sales of EUR 836 million in the first quarter (Q2/2020: EUR 827 million). This corresponds to growth of 3.9% on a currency-adjusted basis.

The slight growth was driven by a volume-related increase in the Greater China and Asia/Pacific regions. This compensated for the stable sales performance in the Americas region and the decline in sales in the Europe region. In the Greater China region, sales rose by 27.1% on a currency-adjusted basis. This development is primarily attributable to the business situation in the wind and power transmission sector clusters.

The sales trend in Europe continued to be impacted by the effects of the coronavirus pandemic and was down 7.3% on the previous year on a currency-adjusted basis.

The Industrial division generated EBIT before special items of around 99 million euros in the first three months (Q1/2020: 88 million euros), which corresponds to an EBIT margin before special items of 11.9% (Q1/2020: 10.7%). The positive margin development is mainly due to the structural measures introduced last year.

Forecast for 2021 raised

The Schaeffler Group has raised its guidance for 2021 from previously more than 7% to more than 10% (at constant currency). This figure is based in particular on an increased market estimate for global growth in the production of passenger cars and light commercial vehicles. The Schaeffler Group currently expects global production of passenger cars and light commercial vehicles to increase by approximately 10 % to 82 million vehicles produced. The market estimates for the Automotive Aftermarket division remain largely unchanged. An improved market estimate is assumed for the Industrial division.

The forecast for the Industrial division has been raised from the previous 4% to 6% to 7% to 9%.

On this basis, the company expects to achieve an EBIT margin before special items of 7 to 9% in the 2021 financial year (previously 6 to 8%).

For 2021, the Schaeffler Group now also expects free cash flow before cash in- and outflows for M&A activities of more than 300 million euros (previously: approximately 100 million euros), which is lower than in the prior year.