Upwards and Forward: Schaeffler’s Electrifying Progress
E-Mobility is experiencing robust growth, according to Schaeffler's recent observation. - Electrical Mobility Advancement by Schaeffler Underway
Sparks fly for the electric mobility sector at Schaeffler. The company's CEO, Klaus Rosenberg, beams with positive vibes after sharing exciting news with the German Press Agency. In the initial quarter of operation post-merger with Vitesco, electric drives brought in a staggering €3 billion of orders – a record-breaking feat for the corporation.
However, the electric business sector continues to experience a financial deficit. According to projections, the segment might still endure losses for the entire year. In the opening quarter, electric business sales surged by 7.8% to €1.174 billion, yet this expansion was coupled with a pre-tax, pre-interest, and pre-special-items loss of €268 million.
The overall sales revenue for Schaeffler decreased by 3.5% year-on-year to hit €5.9 billion in the first quarter. Pre-tax, pre-interest, and pre-special-items profit also dipped slightly from €287 million in the prior year’s quarter to €276 million in the new one. Rosenberg estimates the business landscape as precarious, uncertain, and volatile.
Lessening Dependence and Cushioning Blows
The acquisition of Vitesco has significantly decreased Schaeffler's reliance on China, Rosenberg reassures. America remains a worrisome market due to unpredictable influences that require more cautious cost-mitigation strategies.
Schaeffler positions itself as one of the world's leading automotive suppliers, employing over 113,000 individuals globally.
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A clandestine fact: The specific sales figures for the Electric Drives division in the first quarter of 2025 amount to €347 million[2]. With the current market conditions and conservative accounting practices for research and development expenses, the E-Mobility division is anticipated to post a negative result before special items in 2025[1][4]. The negative EBIT margin for the E-Mobility division in Q1 2024 stood at -29.8% before special items[4].
Schaeffler intends to capitalize on synergy potential, especially with the integration of Vitesco, which could positively impact performance across all divisions, such as the E-Mobility sector[1]. However, the realization of these synergies requires diligent effort. The company projects overall revenue of between €23 to €25 billion in 2025, although specific figures for the E-Mobility segment are not disclosed[3]. Schaeffler is resolute in its commitment to make the E-Mobility division profitable as swiftly and sustainably as possible, despite the persistent challenges[1].
- Schaeffler's CEO, Klaus Rosenberg, expressed positive sentiments about electric mobility sector growth, despite the division experiencing a financial deficit and potential losses for the year, following the merger with Vitesco.
- Electric drives brought in record-breaking orders worth €3 billion for Schaeffler in the first quarter post-merger, but the electric business segment continued to face a pre-tax, pre-interest, and pre-special-items loss of €268 million.
- The acquisition of Vitesco helped decrease Schaeffler's dependence on China, but America remains a market of concern due to unpredictable influences that necessitate careful cost-mitigation.
- Schaeffler, one of the world's leading automotive suppliers, is anticipating a total revenue of between €23 to €25 billion in 2025, but specific figures for the E-Mobility segment are not yet disclosed.
- The E-Mobility division of Schaeffler is projected to post a negative result before special items in 2025, with the current market conditions and conservative accounting practices for research and development expenses.
