Schaeffler Group first quarter 2014 revenue increased 8% year on year to EUR3.0bn.
EBIT increased by EUR59m to EUR414m and included the one-off positive impact of approximately EUR10m from the release of provisions. Excluding this impact, adjusted EBIT margin rose 0.7% to 13.6% from 12.9% while net income improved by EUR149m to EUR382m..
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“We started very well into the year 2014. The key driver of the positive revenue development in the first quarter 2014 was again our automotive business,” said CEO and CFO Klaus Rosenfeld.
Automotive division revenue increased 11.3% to EUR2.2bn.
At 26%, the Greater China region reported the highest growth rate followed by Asia/Pacific where revenue increased 10%. The newly established regions Europe and Americas experienced revenue growth of 7 and 2%, respectively.
The deleveraging achieved in 2013 and the measures taken to improve financing costs reduced interest payments for the first quarter of 2014 to EUR111m, significantly less than EUR190m a year earlier.
Schaeffler has raised its sales guidance for the year and now expects revenue growth of more than 7% (previously 5 to 7%) in 2014. Its forecast EBIT margin remains at 12 to 13%.
