EQS-News: Schaeffler announces structural measures in Europe to boost competitiveness
EQS-News: Schaeffler AG
/ Key word(s): Miscellaneous
Herzogenaurach | November 5, 2024 | The Board of Managing Directors of Schaeffler AG has agreed on structural measures with a regional focus on Germany and Europe aimed at securing a long-term increase in the company’s competitiveness. The decision comes in response to the challenging market environment, the increasing intensity of global competition, and ongoing transformation processes affecting the automotive supply industry. The announced structural measures have three main strands. The first of these deals with the need to improve the earnings performance of the company’s Bearings & Industrial Solutions division. This division is grappling with continuing economic weakness, structural problems, and increasingly intense competition. The second strand addresses the company’s previously announced aim to realize synergies from the merger with Vitesco Technologies Group AG (“Vitesco”). These will mainly be in the form of revenue and purchasing synergies but will also involve some workforce downsizing. The third strand encompasses measures stemming from the ongoing transformation of the automotive supply industry. These include measures relating to the declining volume in ICE technology and the current weakening of new programs for electric drives in Europe. The measures therefore affect both the company’s Powertrain & Chassis division and its E-Mobility division. Gross loss of 4.700 jobs in Europe The downsizing measures will affect 10 locations in Germany. Five locations elsewhere in Europe are affected as well, including two that are set to be closed. Further information regarding these locations will be announced by the end of the year. The company intends to implement the majority of the measures over the period from 2025 to 2027. Potential for savings of about 290 million euros per year by 2029 Measures agreed in connection with previously announced programs of Vitesco and Schaeffler will continue to be implemented as planned. Schaeffler AG Chief Executive Officer Klaus Rosenfeld: “By taking the measures announced today we will tackle three issues. Firstly, we will get our bearings and industrial business back on track. Secondly, we will realize cost synergies from the merger with Vitesco Technologies. And thirdly, we will continue the transformation of our Powertrain & Chassis and E-Mobility divisions. Given the current business environment, this program is necessary to safeguard the Schaeffler Group’s competitiveness over the long term. We will implement it in a socially equitable and carefully considered manner.” Capacity realignments for Bearings & Industrial Solutions division “Demand in many sectors remains weak, particularly in Europe, and this is resulting in overcapacity at locations in Germany and elsewhere in Europe,” Sascha Zaps, CEO Bearings & Industrial Solutions, explained. “For these reasons, we need to undertake structural adjustments to optimize our cost basis, consolidate activities, and improve the long-term competitiveness of our company. As well as capacity realignment this means further localization efforts which we will discuss in close consultation with our employees.” These measures will affect mainly the company’s Schweinfurt and Homburg sites and will primarily be in the form of consolidation activities, capacity realignments, and transfers of production, although there will also be job cuts in corporate functions and administration. The Bearings & Industrial Solutions plant in Homburg is home to the production of components for drive systems, guides and mechatronic system solutions from the linear technology business. The activities of the linear technology business will be relocated to consolidate them in response to persistently weak demand in the Industrial Automation sector. This step will make the linear technology business more competitive and cost-efficient. The other two production plants at the Homburg location are not affected by these relocation measures. In addition, the Bearings & Industrial Solutions division’s main plant at the Schweinfurt location will take over the production operations and workforce of the former Ewellix plant located at the Schweinfurt port, about five kilometers away. In addition, as part of the integration of Ewellix into the Schaeffler Group outside of Europe, the former Ewellix location in Taoyuan will be closed. In Hameln, Schaeffler will discontinue the activities of Melior Motion GmbH, a company it acquired in 2022, and seek opportunities to sell the plant there. The Hameln plant specializes in the manufacture of planetary gearboxes for industrial robots. In Steinhagen, Schaeffler has agreed to work with the relevant employee representatives to jointly develop options for the location’s future. The Steinhagen facility mainly makes spherical plain bearings for various industrial applications. Realizing cost synergies from the merger with Vitesco Regensburg will become the headquarters of Powertrain Solutions within the Powertrain & Chassis division. The headquarters of Schaeffler’s new E-Mobility division will be in Herzogenaurach, which will continue to be the location of the Schaeffler Group’s corporate headquarters. These changes will result in the loss of about 600 jobs in Germany – mainly in Regensburg and Herzogenaurach. The two companies will contribute to these figures in roughly equal proportions. Transformation in the Powertrain & Chassis and E-Mobility divisions As a result of the systematic path taken by the E-Mobility division and the portfolio management approach followed by the former Vitesco, it is now necessary to bring forward into the concrete planning phase further measures that were already signaled prior to the merger. These further measures are also needed because previously anticipated stronger growth levels, particularly from European OEMS, have so far failed to materialize. In addition, increased competition is resulting in ever greater price and cost pressure and driving the need for greater localization of R&D services. It is therefore necessary to reduce cost structures. The resulting measures will affect the Regensburg, Nuremberg and Berlin locations in particular. Socially equitable implementation on basis of Future Accord Schaeffler remains unwaveringly committed to consistently investing in training and professional development for its employees in Germany and Europe. Since 2022, around 40,000 employees across Europe have taken part in upskilling and reskilling programs that have given them the qualifications they need to successfully engage with new areas and key emerging technologies, including almost 19,000 in Germany. Ongoing training and development is one of the keys to taking as many of our employees as possible with us on our journey. “The structural measures are an important step towards safeguarding Schaeffler’s competitiveness,” said Klaus Rosenfeld. “In the current market and competitive situation, there is simply no alternative to these measures. Our commitment to Germany as a business location is undiminished. In the interests of our customers and employees, we will continue to invest in areas and technologies of key importance for the future, including in Germany and wider Europe.”
Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or developments to differ materially from those expressed or implied in the forward-looking statements. These risks, uncertainties and assumptions may have a negative impact on the results and financial consequences of the plans and developments described in this document. There is no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, by means of a public announcement. Recipients of this press release should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Statements contained in this press release regarding past trends or developments should not be regarded as statements that these trends and developments will continue in the future. The foregoing cautionary statements should be considered in connection with subsequent oral or written forward-looking statements made by Schaeffler or persons acting on its behalf.
Schaeffler Group – We pioneer motion The Schaeffler Group has been driving forward groundbreaking inventions and developments in the field of motion technology for over 75 years. With innovative technologies, products, and services for electric mobility, CO₂-efficient drives, chassis solutions and renewable energies, the company is a reliable partner for making motion more efficient, intelligent, and sustainable – over the entire life cycle. Schaeffler describes its comprehensive range of products and services in the mobility ecosystem by means of eight product families: From bearing solutions and all types of linear guidance systems through to repair and monitoring services. Schaeffler is with around 120,000 employees and more than 250 locations in 55 countries, one of the world’s largest family-owned companies and one of Germany’s most innovative companies.
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05.11.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Schaeffler AG |
Industriestr. 1-3 | |
91074 Herzogenaurach | |
Germany | |
Phone: | 09132 - 82 0 |
E-mail: | ir@schaeffler.com |
Internet: | www.schaeffler.com |
ISIN: | DE000SHA0019 |
WKN: | SHA015 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 2022249 |
End of News | EQS News Service |
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2022249 05.11.2024 CET/CEST
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2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
Sales1 | 14.241,00 | 14.427,00 | 12.600,00 | 13.852,00 | 15.809,00 | 16.313,00 | 16.800,00 | |
EBITDA1,2 | 2.175,00 | 1.769,00 | 1.116,00 | 2.230,00 | 1.963,00 | 1.836,00 | 0,00 | |
EBITDA-Margin3 | 15,27 | 12,26 | 8,86 | 16,10 | 12,42 | 11,26 | 0,00 | |
EBIT1,4 | 1.354,00 | 790,00 | -143,00 | 1.264,00 | 974,00 | 834,00 | 1.140,00 | |
EBIT-Margin5 | 9,51 | 5,48 | -1,14 | 9,13 | 6,16 | 5,11 | 6,79 | |
Net Profit (Loss)1 | 895,00 | 440,00 | -415,00 | 775,00 | 585,00 | 335,00 | 520,00 | |
Net-Margin6 | 6,29 | 3,05 | -3,29 | 5,60 | 3,70 | 2,05 | 3,10 | |
Cashflow1,7 | 1.606,00 | 1.578,00 | 1.254,00 | 1.276,00 | 1.139,00 | 1.348,00 | 0,00 | |
Earnings per share8 | 1,33 | 0,65 | -0,63 | 1,13 | 0,83 | 0,47 | 0,61 | |
Dividend per share8 | 0,55 | 0,45 | 0,24 | 0,50 | 0,45 | 0,45 | 0,30 |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
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Schaeffler | ||||||
WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
SHA001 | DE000SHA0019 | AG | 3.975,13 Mio € | 09.10.2015 | Halten | 8FXGHV7P+6R |
PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
8,59 | 9,65 | 0,89 | 4,98 | 1,14 | 2,95 | 0,24 |
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
0,45 | 0,45 | 0,30 | 7,13% |
Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
24.04.2025 | 07.05.2025 | 06.08.2024 | 05.11.2024 | 05.03.2025 |
Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
-7,98% | -19,00% | -24,81% | -22,74% | -66,34% |
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