Global automotive and industrial supplier Schaeffler has announced preliminary financial figures for 2017. The company confirmed the 5.9% increase in revenue at constant currency previously announced on 15 January 2018, which exceeded the company’s guidance for 2017 of 4 – 5%. Total revenue rose to EUR14bn in 2017 (prior year: EUR13.3bn). Fourth quarter revenue increased to approximately EUR3.5bn. This represents constant currency revenue growth of 8.5% for the fourth quarter of 2017.

Both of the privately owned company’s divisions contributed to this positive revenue development in 2017. While the Automotive division reported revenue growth of 5.9% at constant currency, the Industrial division’s constant currency growth rate amounted to 5.7%. In the fourth quarter, the Industrial division grew by 9.1% at constant currency, exceeding the Automotive division’s growth.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Automotive OEM business order intake showed a promising trend: It reached EUR11.5bn for the full year, representing a “book-to-bill ratio”, the ratio of order intake to revenue, of 1.3x. The Industrial division continued to show growing order book as well.

On this basis, the Schaeffler Group generated EBIT before special items of EUR1,584m in 2017 (prior year: EUR1,700m). The resulting EBIT margin before special items of 11.3% (prior year: 12.7%) was in line with the company’s guidance of 11 – 12% for the full year 2017.

The Automotive division reported an EBIT margin before special items of 12.2% in 2017 (prior year: 14.3%). The decrease in EBIT margin was primarily due to the temporarily weak performance in the second quarter of 2017. The Industrial division saw its EBIT margin before special items rise to 8.1% (prior year: 7.3%).

Free cash flow for 2017 came in at EUR488m (prior year: EUR735m). This figure includes approximately EUR27m in net cash outflows from M&A activities. Excluding these outflows, free cash flow was slightly higher than the guidance for the full year 2017 of EUR500m. The decline in free cash flow is primarily due to an increase in capital expenditures to EUR1,273m (prior year: EUR1,146m). The capex ratio, ie capital expenditures as a percentage of consolidated revenue, amounted to 9.1% (prior year: 8.6%).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“With our excellence program Agenda 4 plus One and its 20 initiatives, we have laid the foundation to make the Schaeffler Group even more future-proof. Like any transformation program, the Agenda 4 plus One will initially result in one-time charges and investments that will impact our earnings also in 2018. We have decided to accelerate the implementation of the program in 2018. We adhere to our Financial Ambitions 2020,” said Klaus Rosenfeld, CEO of Schaeffler AG.

For 2018, the Schaeffler Group anticipates revenue growth of 5 – 6% at constant currency and expects to generate an EBIT margin of between 10.5 and 11.5% before special items. In addition, the company expects approximately EUR450m in free cash flow before M&A activities in 2018.