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A Schaeffler gearbox is on display at the IAA in Munich: The Franconian automotive supplier does not want to focus entirely on electromobility.
© Sven Hoppe / dpa
The automotive and industrial supplier Schaeffler does not want to fully commit to advancing electromobility.
“In the end, the customer decides,” says the CEO.
Herzogenaurach - The automotive and industrial supplier Schaeffler does not want to focus entirely on electromobility even after taking over the drive specialist Vitesco.
“We rely on diversity in the powertrain,” CEO Klaus Rosenfeld told the Reuters news agency on Tuesday.
“Whether e-mobility becomes established faster or slower is therefore of secondary importance.” He believes that electric vehicles will become established in the medium term, and there will be no “roll backwards” in EU regulation either.
But it could take longer: “I think it is unrealistic for all vehicles to be electrified in the next two decades.
In the end, the customer decides what he wants to drive,” said Rosenfeld at the virtual annual press conference in Herzogenaurach.
Last year, Schaeffler received orders worth 5.1 billion euros relating to electromobility.
“But that also means that eight billion come from other areas,” emphasized Rosenfeld.
The Regensburg-based automotive supplier Vitesco, which Schaeffler is taking over for up to 3.8 billion euros, was completely committed to converting to electric drives.
Schaeffler will benefit from this, said analyst Pal Skirta from Metzler Equities.
“The car manufacturers know that after the merger with Schaeffler they will get everything they need for e-mobility.”
Vitesco takeover shakes up balance sheet
The complex takeover of Vitesco, which Rosenfeld announced in the fall, has thrown Schaeffler's figures into disarray for two years.
In 2023, net profit fell to 310 (2022: 557) million euros because the company had to value the Vitesco shares in its books at the stock market price.
This impacted profits by 231 million euros, but was purely an accounting effect, said CFO Claus Bauer.
Before special items, net profit would have increased to 623 (610) million euros.
As announced, the preferred shareholders are to receive a stable dividend of 45 cents per share.
At the turn of the year, Schaeffler secured almost 89 percent of Vitesco together with the family holding company IHO; the next step is to merge the new acquisition into Schaeffler AG.
This is unlikely to happen until the fourth quarter, which is why Schaeffler can only record profits and sales from Vitesco 2024 for the last three months.
“2024 is a transition year in which we will have to deal with headwinds in many areas,” Rosenfeld told Reuters.
The forecast is vague.
Thanks to the takeover, sales are expected to “increase significantly” and the adjusted operating return on sales (EBIT margin) is expected to be between six and nine percent.
Possible job cuts in administration
Schaeffler wants to save around 600 million euros with the takeover, but there will only be job cuts in administration.
“We will do this in a socially responsible manner,” emphasized the CEO.
In 2023, Schaeffler increased the return to 7.3 (6.6) percent, which was within its own forecast but below analysts' expectations.
The adjusted operating result rose by 13 percent to 1.19 billion euros, although the industrial division weakened.
The reason for the increase is higher quantities and prices.
Currency-adjusted sales climbed by 5.8 percent to 16.3 billion euros; the board had forecast an increase of five to eight percent.
(Reuters, lf)