Schaeffler Group reports positive first half of 2011

ERJ staff report (LMH)

Herzogenaurach, Germany - Automotive supplier Schaeffler Group said earnings (EBIT) in the first half of 2011 were up 20 percent to Euro 883 million on sales of Euro 5.4 billion, 18 percent above the previous year period.

Schaeffler said in a 31 Aug report that the European region excluding Germany recorded the highest increase in sales of 21 percent, followed by Asia with 18 percent and Germany with 17 percent.

The automotive division again surpassed the sales level of the last period, by 16 percent to Euro 3.6 billion. In the industrial division, sales grew by 25 percent in the first half of 2011 to about Euro 1.7 billion, which Schaeffler attributed to growth in the production machinery, power transmission and aftermarket sectors. Overall sales in the division climbed 25 percent to approximately €1.7 billion.

Compared with the 2010 period, the earnings (EBIT) in the first six months increased by 20 percent to Euro 883 million. Return on sales based on EBIT rose accordingly to 16.4 percent, having reached 16.2 percent in the previous year. Net income in the first half of 2011 improved by Euro 901 million to Euro 641 million, Schaeffler said.

“Our business has developed excellently in the first half of this year. Once again, we managed to significantly exceed the very good levels in sales and net income achieved in the previous half-year period,” said Dr Juergen Geissinger, Schaeffler Group ceo.

By the end of the first half of 2011, the Schaeffler Group employed over 70 000 staff, which Geissinger said was an increase of about 5 percent.

The company said it remains optimistic for the whole of 2011 and expects continued strong demand for its components and systems, although growth rates are likely to slow down compared with the first six months.

Geissinger said, “We have slightly raised our sales expectations for 2011 as a whole, due to the excellent development in the first six months of the year. We are now expecting a sales increase of more than 10 percent. We continue to expect an EBIT margin of over 13 percent.”

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Press release from Schaeffler Group