Schaeffler AG (OTCPK:SCFLF)

$ 4.8 0.47 (10.85%) Market Cap: 3.59 Bil Enterprise Value: 8.93 Bil PE Ratio: 21.10 PB Ratio: 0.83 GF Score: 66/100

Q3 2024 Schaeffler AG Earnings Call Transcript

Nov 05, 2024 / 10:00AM GMT

Transcript

Key Points

Positve

Schaeffler AG (SCFLF) reported strong free cash flow of EUR 188 million in Q3, demonstrating robust cash generation capabilities.
The company successfully completed the merger with Vitesco, aligning with strategic goals and enhancing its position in the e-mobility sector.
Vehicle Lifetime Solutions (VLS) division showed continued strong sales growth and maintained a record EBIT margin, outperforming competitors.
Schaeffler AG (SCFLF) confirmed its guidance for 2024, maintaining a dividend payout ratio of 40% to 60%, reflecting confidence in financial stability.
The company announced 'Program Forward,' targeting a recurring EBIT impact of EUR 290 million per annum by 2029, indicating proactive measures to address market challenges.

Negative

Q3 sales were slightly below the previous year, with declines in bearings and industrial solutions due to market-driven factors.
The automotive technologies division reported a disappointing 2.3% margin, impacted by reduced volumes and e-mobility ramp-ups.
The market environment remains challenging, particularly in Europe, with lower automotive production and ongoing industrial sector weaknesses.
Schaeffler AG (SCFLF) faces headwinds in bearings and industrial solutions, necessitating self-help measures to address underperformance.
The integration of Vitesco involves significant restructuring costs, with EUR 580 million expected, impacting short-term financials.

Operator

Dear ladies and gentlemen, welcome to the Schaeffler Group Q3 and nine months 2024 earnings conference call. (Operator Instructions)

At our reserved customer's request, this conference will be recorded, and the replay will be available shortly after the call on the website.

May I now hand over to CEO, Klaus Rosenfeld; CFO, Claus Bauer; and Head of IR, Heiko Eber, who will lead you through this conference. Please go ahead.

Heiko Eber

Schaeffler AG - Head of IR

Thank you very much operator. Ladies and gentlemen, I'm very happy to welcome you to our today's call on the financial results of the first -- third quarter 2024. The press release, the presentation and our nine-month report has been published today at 8:00 AM CET on our Investor Relations home page. And for sure, we will provide a recording and a transcript of this call on our website afterwards.

Now before we take a look at today's agenda, I'm sure that you have all taken notice of our well-known disclaimer. Looking at the agenda, and Klaus Rosenfeld, our CEO; and Claus

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