- WKN: SHA015
- ISIN: DE000SHA0159
- Land: Deutschland
Nachricht vom 04.03.2021 | 08:00
Schaeffler AG: Schaeffler closes 2020 with strong fourth quarter
DGAP-News: Schaeffler AG
/ Key word(s): Annual Results
- Schaeffler Group weathers crisis well despite constant currency revenue decline of 10.4 percent
- Diversification with three divisions and four regions drives operating earnings (EBIT margin before special items at 6.4 percent; prior year: 8.1 percent)
- Free cash flow before cash in- and outflows for M&A activities of 539 million euros ahead of prior year (prior year: 473 million euros)
- Proposed dividend of 25 cents per common non-voting share
- Guidance based on cautious market assessment
Earnings before financial result, income (loss) from equity-method investees, and income taxes (EBIT) were adversely affected by 946 million euros in special items (prior year: 372 million euros). Special items related primarily to the expansion of the transformation and efficiency programs RACE (Automotive Technologies), GRIP (Automotive Aftermarket), and FIT (Industrial) established in 2019 as well as an impairment of goodwill allocated to the Automotive Technologies division, and resulted in EBIT of -143 million euros (prior year: 790 million euros).
Despite the decrease in revenue, the company's EBIT margin before special items amounted to 6.4 percent (prior year: 8.1 percent), demonstrating that the measures initiated under the divisional programs are making an impact. Following a weak first six months with an EBIT margin of 1.2 percent, the EBIT margin improved to 10.5 percent in the second half of the year and was ahead of the prior year (8.4 percent) as well.
The net loss attributable to shareholders of the parent company for the reporting period was 424 million euros following net income of 428 in the prior year. Earnings per common non-voting share were -0.63 euros (prior year: 0.65 euros).
Before special items, net income attributable to shareholders of the parent company was 325 million euros (prior year: 686 million euros). On that basis, Schaeffler AG's Board of Managing Directors will propose a dividend of 25 cents per common non-voting share (prior year: 45 cents) to the annual general meeting. This represents a dividend payout ratio of approximately 50 percent (prior year: approximately 43 percent) of net income before special items attributable to shareholders.
The significant decline in global automobile production reduced revenue for three of the four regions. The Europe region was affected particularly severely; revenue there was down 19.7 percent at constant currency. The Americas region reported 13.7 percent less revenue at constant currency. In the Greater China region, revenue was up 5.8 percent at constant currency. In the Asia/Pacific region, revenue fell by 13.2 percent at constant currency.
EBIT before special items decreased by 44 percent to 278 million euros (prior year: 496 million euros). The division's EBIT margin before special items declined to 3.6 percent (prior year: 5.5 percent). Before special items, the EBIT margin for the second half of the year of 10.0 percent improved considerably over both the first six months (-5.5 percent) and the corresponding prior year period (6.1 percent).
In the Europe region, revenue fell by 7.8 percent at constant currency. The Americas region reported 4.3 percent less revenue at constant currency. The constant currency decline in the Greater China region of 1.9 percent was more moderate. In the Asia/Pacific region, revenue was down 12.3 percent at constant currency.
EBIT before special items amounted to 259 million euros (prior year: 305 million euros), falling by 15.1 percent. Despite the considerable revenue decline, cost adjustments improved the division's EBIT margin before special items for the second half of the year compared to the first six months, returning it to the level of the prior year period of 17.4 percent. The EBIT margin before special items for 2020 amounted to 15.8 percent (prior year: 16.5 percent).
In the Europe region, revenue fell by -18.4 percent at constant currency due to lower demand in most sector clusters, especially in most sectors of the industrial automation cluster. The business with distributors (Industrial Distribution) was marked by the reduced demand for service and a corresponding reduction in inventory levels. The Americas region experienced a considerable decrease in revenue of -13.5 percent at constant currency, held back by the decline reported by Industrial Distribution and the raw materials and aerospace sector clusters. The Greater China region increased its revenue for the year by 18.1 percent at constant currency mainly due to the encouraging performance of the wind and power transmission sector clusters. In the Asia/Pacific region, revenue fell -13.6 percent at constant currency short of the prior year level. The decline was mainly attributable to Industrial Distribution and the two wheelers sector cluster. However, the revenue trend improved considerably in both these areas in the second half of 2020.
EBIT before special items decreased by 26.3 percent to 266 million euros (prior year: 361 million euros). The division's EBIT margin before special items declined by 1.7 percentage points to 8.5 percent (prior year: 10.2 percent).
The group's net financial debt amounted to 2,312 million euros as at December 31, 2020 (December 31, 2019: 2,526 million euros). The related gearing ratio, i.e. the ratio of net financial debt to shareholders' equity, rose to 125.8 percent (December 31, 2019: 86.6 percent). The Schaeffler Group, whose total assets increased to approximately 13.2 billion euros as at December 31, 2020 (prior year: approximately 12.9 billion euros), employed a workforce of 83,297 as at that date (prior year: 87,748), a reduction of approximately 5.1 percent.
The group anticipates that its Automotive Technologies division will grow by 2 to 5 percentage points more than global automobile production of passenger cars and light commercial vehicles. On that basis, the company expects the Automotive Technologies division to generate revenue growth that is considerably positive at constant currency, and to slightly improve its EBIT margin before special items over the prior year by raising it to more than 4.5 percent.
For the Automotive Aftermarket division, the group anticipates constant currency revenue growth of 5 to 7 percent and an EBIT margin before special items slightly lower than in the prior year at more than 11.5 percent in 2021. This expectation reflects higher product expenses, a temporary increase in logistics expenses related to the assembly and packaging center in Halle (Saale) commencing operations, expenses for digitalization, and an adverse impact of currency translation.
Given the range of estimates Oxford Economics and others have made regarding growth in global industrial production, the company expects its Industrial division to generate revenue growth of 4 to 6 percent at constant currency and an EBIT margin before special items in the high single-digits above 8.5 percent in 2021.
Dr. Klaus Patzak, CFO of Schaeffler AG, said: "We are confidently looking ahead to the coming year and anticipate relatively robust growth for our markets. However, the economic environment remains challenging in times of the pandemic, and we do not expect to reach pre-crisis levels until after 2022. Our guidance reflects that."
"The year 2020 was marked by great uncertainties that still persist today. Once again, our positioning as an automotive and industrial supplier operating worldwide has proven to serve us well in difficult times and has helped us weather the crisis relatively well," stated Klaus Rosenfeld, CEO of Schaeffler AG. "We used the year of crisis to hone our strategy and orient it toward current challenges and opportunities as part of the Roadmap 2025. Our main focus is now on consistently executing the Roadmap 2025."
You can find our annual report at: www.schaeffler-annual-report.com
Here you find our digital press kit: www.schaeffler.com/apc
Schaeffler Group - We pioneer motion
|Phone:||09132 - 82 0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1173009|
|End of News||DGAP News Service|
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