Schaeffler (SHA0) Q3 2022 earnings summary

Executive summary

• Nine-month revenue was €11,790m, up 8.7% at constant currency; adjusted EBIT margin was 6.9% and free cash flow before M&A cash flows was €35m.

• Q3 revenue rose 20.2% at constant currency to €4,242m; adjusted EBIT margin improved to 8.4% from 7.8%, and FY2022 guidance was confirmed.

Financial highlights

• Nine-month revenue increased 14.0% reported and 8.7% at constant currency; adjusted EBIT fell 15.5% to €813m and reported EBIT fell 24.2% to €750m.

• Nine-month net income attributable to shareholders declined 31.7% to €417m; EPS per common non-voting share was €0.63 versus €0.92.

• Gross profit rose 3.6% to €2.69bn, while gross margin declined to 22.8% from 25.1%; higher input, freight and logistics costs pressured profitability.

• Q3 adjusted EBIT rose 36.4% to €355m; reported EBIT was €316m, up 19.0%.

Outlook and guidance

• FY2022 guidance was maintained: constant-currency revenue growth of 6–8%, adjusted EBIT margin of 5–7%, and free cash flow before M&A cash flows above €250m but below prior year.

• Automotive Technologies: moderate constant-currency revenue growth; adjusted EBIT margin above 2.5% but below prior year, with growth 2–5 percentage points above global LVP growth.

• Automotive Aftermarket: moderate constant-currency revenue growth and adjusted EBIT margin above 12% but below prior year.

• Industrial: considerable constant-currency revenue growth and adjusted EBIT margin above 11% but below prior year.