Schaeffler's Electric Mobility Segment: Q1 Struggles and Optimistic Outlook
What Went Down
Electric Mobility Progression Persists According to Schaeffler - Electric mobility progress is underway according to Schaeffler
Despite being on a roll with record orders in the electric mobility segment, German automotive giant Schaeffler took a hit in Q1. While the electric business saw a 7.8% growth to 1.174 billion euros, pre-tax profits sank to a staggering loss of 268 million euros. That's some rough math for ya!
Digging Deeper
When peeling back the layers, it appears Schaeffler's electric mobility segment, covering electric drives and mechatronics, is coughing up a storm. The division's EBIT before special items? Breathing some thick, smoky air, my friend! As for specific numbers, they chose to keep those under wraps. But suffice it to say, the overall EBIT before special items for the associated divisions takes a nosedive during Q1 2025.
Bringing Home the (Loss) Bacon
The script ain't all doom and gloom, though. Schaeffler's outlook for the full year looks a bit brighter. They still expect to eke out a loss before special items for the E-Mobility division. And while it's in part due to a more conservative approach towards R&D spending, they're gunning for a quick and sustainable turnaround in the division's performance.
Sticking to the Script
On the revenue front, Schaeffler's Q1 performance falls short of last year's numbers, notching a 2.9% decrease for a total of 5.9 billion euros. Sadly, specific sales figures for the electric mobility segment are nowhere to be found. But with a general downturn across the board, it's evident that things are tough all over.
Sailing the Uncertain Seas
Chaos on the high seas? No, that's just Schaeffler keeping a close eye on the ongoing U.S. tariff situation. With new countermeasures announced in April 2025, they're vigilantly monitoring developments, all set to weather the storm and report any necessary actions.
The Final Word
Despite the electric mobility segment's rough patch in Q1, Schaeffler remains optimistic about other parts of their empire, expecting positive EBIT margins before special items. As a titan amongst the world's top 10 automotive suppliers, they aim high and plan to put their electric division back on track as soon as possible. Stay tuned, folks!
- While Schaeffler's electric mobility segment faces a loss in Q1, they remain optimistic about the full year, expecting a turnaround in the division's performance.
- The ongoing U.S. tariff situation is being closely monitored by Schaeffler, with new countermeasures announced in April 2025.
- Schaeffler's EBIT margins before special items are expected to be positive in other parts of their business.
- Vocational training programs could prove beneficial for the renewable-energy industry, as Schaeffler looks to invest in sustainable solutions.
- In order to navigate the competitive automotive industry, many EC countries are implementing programs that focus on vocational training for their workforce.
- With the decreasing demand for traditional automotive products, Schaeffler's Vitesco division is pivoting towards producing electric drive solutions, helping the company stay at the forefront of the industry.
