Schaeffler has recorded nine-month revenue up 10.6% to EUR10bn (US$10.7bn) and excluding the impact of currency translation, the growth rate was 4.2%.
The Automotive business reported revenue growth of 12.6% compared to the prior year (+6.5% at constant currency), outpacing the increase in global production volumes of passenger cars and light commercial vehicles (+1.2%).
Product ramp-ups, new customer projects, and capacity expansions at manufacturing locations in the growth regions were the drivers behind the growth. Revenue for the Industrial business was up 5%. Excluding the favourable impact of currency translation, Industrial division revenue declined by 2.2 %.
“Our Automotive division continues to perform very well,” said Schaeffler CEO, Klaus Rosenfeld. “We were able to once more generate above-average revenue growth in a challenging market environment.
“The realignment of our Industrial division is on track. We are optimistic with our programme, CORE, we will be able to gradually improve the profitability in our industrial business.”
In August this year, Schaeffler announced a realignment aimed at improving the efficiency and competitive position of its Industrial business for the long term. The key elements of this realignment are increased sales growth, enhanced delivery performance and service quality, stronger customer orientation as well as cost savings and efficiency improvements.
All four of the Schaeffler Group’s regions reported revenue increases during the first nine months of 2015, with currency translation having a favourable impact on non-Euro region revenue. Revenue grew fastest in the Schaeffler Group’s Greater China region, rising by 26.3% (+5.8% at constant currency), followed by the Americas region, where revenue increased 21.2% (+9.8% at constant currency).
Asia/Pacific reported revenue growth of 12.1% (+2.4% at constant currency), while the Europe region grew its revenue by 3.4% (+2.2% at constant currency).
The Schaeffler Group’s EBIT (earnings before interest and taxes) increased by 1.7% percent to EUR1.3bn for the first nine months of 2015 from the prior year period. The company’s EBIT margin measured in terms of revenue remained high at 12.5%.
“Thanks to our strong Automotive business and good cost discipline we were able to raise our margin compared to the first six months of 2015,” added Schaeffler CFO, Ulrich Hauck.
The number of employees increased by around 2,100 staff since the end of 2014, rising to 84,400 at the end of the third quarter of 2015.
Schaeffler confirmed its guidance for 2015 as a whole, which it had adjusted on 21 September, 2015.
“Despite the weaker market trend in the Automotive business in China and worldwide in the Industrial business, we continue to anticipate revenue growth of 4 to 5 percent at constant currency,” noted Rosenfeld.
“Our objective of achieving an EBIT margin of 12% to 13% before special items remains unchanged.”