Schaeffler Group: Good start to 2011
2011-05-17 | HERZOGENAURACH
- Sales for Q1 2011 increase 25% to approximately €2.7 billion
- EBIT at €472 million (up 41% from prior year quarter)
- Net income at €438 million
- Positive free cash flow
- Outlook for 2011 still positive
Schaeffler Group has had a strong start to 2011, reaching record levels of sales, EBIT and net income for the first quarter.
“The excellent performance in the first quarter of 2011 is driven by broad growth across all sectors and regions” stated Dr. Juergen M. Geissinger, CEO of Schaeffler Group. “Thanks to our innovative products, the large scope of our product range, and our focus on regional and industrial growth areas, we were able to again clearly outperform the strong market growth.”
Schaeffler Group sales increased 25 percent to approximately €2.7 billion. Both divisions were able to benefit from increased customer demand. Automotive division sales increased 22 percent to €1,822 million (Q1 2010: €1,491 million), while the Industrial division was able to grow its sales by 33 percent to €855 million (Q1 2010: €641 million). Schaeffler Group EBIT for the first quarter of 2011 was €472 million, increasing 41 percent from the first quarter of 2010.
Schaeffler Group’s financial result of €105 million (Q1 2010: negative €658 million) was driven by the company’s share of Continental AG net income of €106 million and net interest expense of €1 million. Net interest expense includes €156 million in unrealized non-cash gains due to changes in the fair value of interest rate derivatives, which have offset interest expense on our financial debt. On this basis, net income improved by €795 million to €438 million.
Free cash flow for the first quarter of 2011 was €11 million (Q1 2010: €127 million). The decrease primarily resulted from the increase in working capital due to the strong volume business in the first quarter of 2011 as well as the increase in capital expenditure to support our wordwide growth initiatives. Net financial debt was approximately €6.1 billion at March 31, 2011 (December 31, 2010: €5.7 billion). The increase is due to reduced cash balances following a prepayment of €400 million made in connection with the realignment of our financing arrangement that we announced in March 2011. This has brought our leverage ratio to 2.8 (December 31, 2010: 2.7). Schaeffler Group’s workforce increased to 69,517 as per March 31, 2011, up three percent from the end of 2010.
The outlook for 2011 remains positive. Dr. Juergen M. Geissinger commented: “Following the good start to 2011, we are looking forward to the remainder of the year with confidence. In our industrial businesses in particular we are anticipating a continually growing demand for our innovative products. At the same time, we are aware that the imponderabilities inherent both in the macroeconomic environment and in the trend in raw material and energy costs should not be underestimated.”
Publisher: Schaeffler GmbH
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