Global automotive and industrial supplier Schaeffler has presented its results for 2021.
The Schaeffler Group’s revenue for the reporting period amounted to roughly €13.9 billion, compared to the previous year's €12.6 billion. At constant currency, revenue was up 9.7%. The year was marked by considerable revenue growth at all divisions and in all regions.
Earnings before financial result, income (loss) from equity-method investees, and income taxes (EBIT) were impacted by €1 million in special items (prior year: €946 million) and amounted to €1,266 million following €798 million in the prior year, an increase of about 59%.
The Schaeffler Group generated an EBIT margin before special items of 9.1% in 2021 (prior year: 6.3%), mainly driven by a further improvement in earnings of the industrial division and during the first half of the year from the automotive technologies division. Structural cost reduction measures had a favorable impact, as well.
Net income attributable to shareholders of the parent company for the reporting period amounted to €756 million following a net loss of €428 million in the prior year. Earnings per common non-voting share were €1.14 (prior year: €-0.64 ).
Before special items, net income attributable to shareholders of the parent company was €748 million (prior year: €321 million). On that basis, Schaeffler AG’s Board of Managing Directors will propose a dividend of 50 cents per common non-voting share (prior year: 25 cents) to the annual general meeting. This represents a dividend payout ratio of approximately 44% (prior year: approximately 50%) of net income before special items attributable to shareholders and twice the proposed dividend per share of the prior year.
E-Mobility Order Intake at Automotive TechnologiesThe automotive technologies division generated €8,436 million in revenue (prior year: €7,816 million). At constant currency, revenue increased by 7.4 % from the prior year. The revenue growth during the reporting period was driven by recovery tendencies following the coronavirus pandemic, particularly during the first six months, while global automobile production experienced an offsetting trend in the second half of the year. Automobile production increased by approximately 3.4% worldwide during the reporting period.
In total, the automotive technologies division outperformed global automobile production of passenger cars and light commercial vehicles by 4 percentage points. The division generated order intake of €10.2 billion in 2021. €3.2 billion of these orders related to the e-mobility business division and considerably exceeded the original target of €1.5 billion to €2 billion.
Despite the unexpectedly restrained growth in global automobile production in 2021, the automotive technologies division reported considerable revenue increases in all regions. The Europe region grew the most in absolute terms, its revenue rising by 7.1% at constant currency. In the Americas, greater China, and Asia/Pacific regions, revenue was up 6.8%, 5.7% and 13.8%, respectively, at constant currency.
EBIT before special items rose to €585 million (prior year: €263 million). The division’s EBIT margin before special items increased to 6.9%(prior year: 3.4%).
Automotive Aftermarket Revenue GrowsThe automotive aftermarket division reported additional revenue in 2021. Driven by volumes, its revenue rose to €1,848 million (prior year: €1,642 million), reaching the same level as in 2019. This increase represents constant-currency growth of 13%. Revenue trends were clearly positive in all regions.
In the Europe region, revenue increased by 8.1% at constant currency, making this the fastest-growing region in absolute terms. In the Americas, greater China, and Asia/Pacific regions, revenue was up 26.1%, 27.5%, and 37.9%, respectively, at constant currency.
EBIT before special items amounted to €254 million (prior year: €258 million). Increased product expenses and additional selling expenses in connection with the assembly and packaging center for Europe commencing operations reduced the EBIT margin before special items to 13.8% (prior year: 15.7%).
Industrial Division Earnings Up
The industrial division continued along its path of profitable growth, generating €3,568 million in revenue (prior year: €3,132 million), an increase of 13.6% at constant currency. Trends varied across sector clusters, with particularly high growth rates generated by the industrial automation, power transmission and offroad sector clusters as well as industrial distribution.
In the Europe region, revenue was up 12.3% at constant currency, with the industrial automation and power transmission sector clusters as well as Industrial Distribution generating considerable growth rates particularly in the second half of the year. The Americas region’s constant-currency revenue growth of 13.8% was mainly driven by industrial distribution. Greater China region revenue rose by 14.5% at constant currency despite the end of subsidies impacting demand in the wind sector cluster as expected. In the Asia/Pacific region, revenue increased by 18.3% from prior year at constant currency, mainly as a result of higher volumes in the wind sector cluster in India.
EBIT before special items increased significantly, growing by 54.4% to €426 million (prior year: €276 million). The division’s EBIT margin before special items improved to 12% (prior year: 8.8%).
Claus Bauer, CFO of Schaeffler AG, said, “The year 2021 has been a successful one for all divisions and regions and highlights our ability to balance our transformation with strong results even in a challenging market environment. Our high free cash flow enables us once again to propose an attractive dividend to the annual general meeting that is considerably improved from the prior year.”