Schaeffler Group Reduces Net Financial Debt

The Schaeffler Group has mastered the worst economic crisis in recent times. Sales rose 31% in the first half of 2010 to around €4.6 billion (compared to around €3.5 billion in the same period the previous year). From business operations over the first six months, Schaeffler generated earnings before interest and taxes (EBIT) of €739 million (€108 million). The EBIT margin went up to around 16 percent (3 percent) and is thus above the long-term average.  
Both divisions – Automotive and Industrial – increased sales and significantly improved results: In the Automotive division EBIT rose to €517 million (€ -1 million) in the first half, while EBIT in the Industrial division more than doubled to €222 million (€109 million). Experience shows that there usually is a lag of several months between the recovery in the automotive and industrial sector. This is illustrated by the difference in development of sales in both divisions during the first half-year: Automotive rose 45 percent to around €3.1 billion, while Industrial increased by 5 percent to around €1.4 billion.  
For 2010 as a whole, the Schaeffler Group expects sales to exceed €8 billion, with an EBIT margin of more than 10 percent. Schaeffler Group CEO Dr. Juergen M. Geissinger commented: “The Schaeffler Group has generated an excellent operative result for the first half-year. We have started well into the second half and are optimistic that we will be able to exceed the targets we set ourselves.”