Schaeffler Rides the Electric Mobility Wave, Faces Persisting Financial Hurdles
E-Mobility Continues to Soar According to Schaeffler - Electrical Mobility Progresses Ahead According to Schaeffler
Schaeffler, the German auto and industrial titan, is feeling the surge of electric mobility. Klaus Rosenberg, Schaeffler's CEO, shared his optimism in a chat with the German Press Agency, stating, "We see clear momentum in electric mobility." The company raked in a whopping three billion euros worth of orders in this segment in the first quarter—a new record, following the merger of Schaeffler and electric drive specialist Vitesco.
Despite the promising momentum, the electric mobility segment remains a loss-maker, as confirmed by Schaeffler's first-quarter results. This division swelled by 7.8% to 1.174 billion euros in the first quarter but racked up a pre-tax, pre-interest, and pre-special-items loss of 268 million euros.
The overall sales for the first quarter slid by 3.5% year-on-year to 5.9 billion euros, and pre-tax, pre-interest, and pre-special-items profit dipped from 287 million euros in the previous year's quarter to 276 million euros. Rosenberg noted that the operating environment remains volatile and uncertain.
Reducing dependence on the Chinese market is one strategy Schaeffler employs, according to Rosenberg. The company's concerns about the American market persist, with Rosenberg promising to cushion the impact of tariffs.
Schaeffler, a top-tier automotive supplier, boasts over 113,000 workforce members worldwide.
- INA Holding Schaeffler
- Electric Mobility
- Vitesco Technologies
- Herzogenaurach
- Rosenberg
- German Press Agency
In-depth analysis suggests that Schaeffler's electric mobility segment faced challenging financial conditions in 2024, with sales of around €4.8 billion but loses amounting to approximately €1.07 billion before special items, translating to a negative EBIT margin of around -22.1%. The division experienced negative quarterly EBIT margins in 2024, with Q1 showing a margin of -29.8%, Q2 -22.0%, Q3 -16.9%, and Q4 -20.9%. Weaker market conditions and conservative accounting practices, particularly in research and development expenses, contributed to the losses[4].
Schaeffler aims to reverse these losses and achieve profitability as quickly and sustainably as possible, signaling a strategic emphasis on improving performance[2]. Though sales figures for the electric mobility segment alone aren't explicitly given, overall E-Mobility sales in 2024 were approximately €4.8 billion, and the company claims to look forward to realizing synergy potential estimated around €600 million from integration efforts in the EV field, hinting at aspirations for growth, despite ongoing losses[1][2][4].
- Schaeffler's electric mobility segment, despite garnering a record-breaking three billion euros worth of orders in the first quarter, has been a persistent loss-maker, with a pre-tax, pre-interest, and pre-special-items loss of 268 million euros in Q1 2024.
- The German industrial titan, Schaeffler, has identified the need to reverse these losses and achieve profitability in the electric mobility segment as quickly as possible, as revealed by CEO Klaus Rosenberg.
- Schaeffler's strategic emphasis on improving performance in the electric mobility segment is expected to be aided by synergy potential estimated around €600 million from integration efforts in the EV field.
- Schaeffler's concerns about the American market persist, with the company planning to mitigate the impact of tariffs as a strategy.
- Vitesco Technologies, Schaeffler's electric drive specialist, played a crucial role in the generation of three billion euros worth of electric mobility orders in the first quarter.
