Schaeffler increases net income by 45%
Global automotive and industrial supplier Schaeffler continued moving along its successful course in 2016. The company increased its revenue to EUR 13.3 billion (prior year: EUR 13.2 billion). At constant currency, this represents a growth rate of 3.4 percent
The Automotive division acted as the main driver behind the company’s performance in 2016, reporting revenue growth of 6.0 percent at constant currency compared to the prior year. Thus, the Automotive business once again expanded faster than global production volumes for passenger cars and light commercial vehicles (+4.8 percent). From a regional perspective, strong demand in the Greater China region was the main contributor to this growth. The Aftermarket was also very successful, expanding by 10.8 percent at constant currency.
The Industrial division declined in a challenging market environment. Its revenue declined by 4.8 percent (at constant currency). While the wind, two wheelers, and aerospace sectors were able to grow their revenue, low levels of demand had an adverse effect on revenue, primarily in the raw materials and rail sectors.
All regions of the Schaeffler Group contributed to the increase in revenue. Revenue in the Europe region was up 1.8 percent (at constant currency). Americas region revenue came in at the prior year level. Driven by the buoyant Automotive business, revenue in the Greater China and Asia/Pacific regions increased by 13.3 percent (at constant currency) and 4.7 percent (at constant currency).
Earnings before financial result and income taxes (EBIT) before special items was EUR 1,700 million (prior year: EUR 1,676 million). The EBIT margin amounted to 12.7 percent on the same basis. Special items of EUR 144 million consisted mainly of provisions for restructuring expenses and legal risks. Lower interest expenses improved financial result by EUR 206 million to EUR 341 million (prior year: EUR -547 million). Net income attributable to shareholders of the parent company increased by 45 percent to EUR 859 million (prior year: EUR 591 million), mainly due to the improvement in financial result.
Klaus Rosenfeld, CEO of Schaeffler AG, was pleased with the results for 2016: “2016 was a strong year. We are well-positioned for the future. Our net income increased by 45 percent to EUR 859 million. The ordinary dividend shall be increased from 35 to 50 cents per common non-voting share.”