Schaeffler Group Demonstrates Financial Strength With Improved Profitability in 2023

Schaeffler AG announced that in 2023, its revenue increased by 5.8 percent at constant currency to 16.3 billion euros, up from the previous year's 15.8 billion euros. The company’s earnings before interest and taxes (EBIT) before special items rose to 1,187 million euros, showing an improvement from 1,046 million euros in the prior year, achieving an EBIT margin before special items of 7.3 percent.

The Automotive Technologies division saw a significant margin improvement, while the Automotive Aftermarket division reported strong revenue growth. However, the Industrial division faced a market-related decline in margins. Free cash flow before cash in- and outflows for mergers and acquisitions activities was reported at 421 million euros, surpassing the company’s guidance despite increased investment activities. The company proposed a dividend of 0.45 euros per common non-voting share.

Schaeffler AG's guidance for 2024 reflects the planned merger with Vitesco Technologies, anticipating considerable revenue growth at constant currency, an EBIT margin before special items of 6 to 9 percent, and free cash flow before cash in- and outflows for mergers and acquisitions activities of 300 to 400 million euros.

Despite a dynamic market environment, Schaeffler AG highlighted its financial and operational resilience in 2023, supported by targeted investments in new technologies, and remains optimistic about its merger with Vitesco Technologies aimed at becoming a leading Motion Technology Company.