Schaeffler's Surge in E-Mobility: A Promising Chapter Unfolds
E-Mobility Persists as a Relentless Movement According to Schaeffler - Electric mobility progressing, as per Schaeffler's reports
Schaeffler, a automotive and industrial powerhouse, is riding the wave of electric mobility with full throttle. In an interview with the German Press Agency, CEO Klaus Rosenberg expressed optimism, stating "There are positive vibes that things are moving," following the company's Q1 orders worth a staggering €3 billion in the electric segment - a record-breaking figure, post their merger with electric drive specialist, Vitesco.
Yet, Profitability Remains Elusive
Despite the promising growth, Schaeffler's electric division continues to show losses according to the forecast, indicating that profitability in this sector remains an uphill battle. In Q1, the electric business surged by 7.8% to €1.174 billion, but still posted a pre-tax, pre-interest, and pre-special items loss of €268 million.
Financial Slump, but Lesser Chaos
Schaeffler's overall revenue in Q1 dipped by 3.5% year-on-year to €5.9 billion, with pre-tax, pre-interest, and pre-special items profit dropping from €287 million in the previous year's quarter to €276 million. Rosenfeld echoed concerns over the unpredictable and volatile business environment.
Decreased China Dependence, American Anxiety
Rosenberg highlighted that the acquisition of Vitesco has lessened their reliance on the Chinese market. However, the ongoing tension in the US continues to be a source of worry. "We've got to cushion the tariffs. We'll do it carefully," Rosenfeld said.
Schaeffler in a Nutshell
Hailing from Herzogenaurach, Schaeffler employs over 113,000 workers worldwide and ranks among the world's ten largest automotive suppliers.
- Schaeffler
- Electric Mobility
- Vitesco Technologies
- Klaus Rosenberg
- German Press Agency
Behind the Scenes:
Strong performance and growth in sales characterize Schaeffler's E-Mobility sector. Compared to the previous year, sales increased nearly 10%, and the gross margin improved by 6.5 percentage points[5]. Acquiring Vitesco Technologies has the potential to further strengthen Schaeffler's position in the electric mobility race, if Vitesco was involved in similar areas like automotive electronics and electric powertrain components[6]. Despite challenges such as trade conflicts and tariffs[4], Schaeffler expects a positive future for its E-Mobility segment, reinforcing its commitment to the sector.
- Schaeffler's CEO, Klaus Rosenberg, expressed optimism to the German Press Agency about Schaeffler's electric mobility sector, which posted record-breaking orders worth €3 billion in the electric segment in Q1, following their merger with electric drive specialist, Vitesco Technologies.
- Despite the promising growth, Schaeffler's electric division continues to show losses, with a pre-tax, pre-interest, and pre-special items loss of €268 million in Q1, indicating that profitability in this sector remains an uphill battle for the company.
- Vitesco Technologies, acquired by Schaeffler, has the potential to further strengthen Schaeffler's position in the electric mobility race, given Vitesco's involvement in similar areas such as automotive electronics and electric powertrain components.
- Rosenberg also highlighted that the acquisition of Vitesco has lessened Schaeffler's reliance on the Chinese market, but the ongoing tension in US-China relations continues to be a source of worry, with Schaeffler aiming to carefully mitigate potential tariffs.
- In addition to its commitment to electric mobility, Schaeffler, hailing from Herzogenaurach, employs over 113,000 workers worldwide and ranks among the world's ten largest automotive suppliers.
