Schaeffler to streamline operations with Continental

Article by Christian A., on March 23, 2014

Schaeffler will streamline its operations and widen cooperation with Continental, in which it holds a 46 percent stake. Schaeffler wants to deepen collaboration in areas like engine and drivetrain technology. "Our goal is to improve processes and boost efficiency" by the end of 2015, Schaeffler's Chief Financial Officer Klaus Rosenfeld said.

"There's significantly more potential" to be had by working closer with Continental, remarked Schaeffler board member Peter Gutzmer, adding that past efforts "could have gone further." Schaeffler's automotive unit will still be the key earnings driver as the supplier expects global production of cars and light commercial vehicles to surge, Rosenfeld said.

Earnings before interest and taxes (EBIT) in 2013 dropped 31 percent to EUR982 million ($1.35 billion). Schaeffler recently disclosed that it took a EUR380 million provision in 2013 in relation to a European Union antitrust probe. EBIT adjusted for the provision and job-cut costs remains unchanged at EUR1.41 billion, with the margin dropping 0.1 percentage point to 12.7 percent of revenue.

The German supplier expects its margin in 2014 to amount to between 12 percent and 13 percent of sales. Schaeffler managed to cut its net debt to EUR5.9 billion at the end of 2013 from a peak of over EUR10 billion shortly after the Continental stake purchase.

Rosenfeld remarked it was "too early" to talk about possible steps for a larger debt reduction, adding that and it won't decrease substantially in 2014. He said that additional debt booked at Schaeffler's holding company remained "largely unchanged.”

Topics: continental

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries