Schaeffler AG, the world’s second- biggest maker of roller bearings, forecast slower sales growth and lower profitability in 2012 as the European market weakens.
Earnings before interest and taxes in 2012 will represent more than 13 percent of revenue, which will climb more than 5 percent, the Herzogenaurach, Germany-based company said in a statement today. The 2011 Ebit margin was 15.8 percent, while sales gained 13 percent to 10.7 billion euros ($14.2 billion).
“We are currently seeing demand in the European markets weaken,” Chief Executive Officer Juergen Geissinger said in the statement. “Globally, however, our business is continuing to show a positive trend.”
Schaeffler, which is closely held and accumulated 12 billion euros of debt from purchasing a controlling stake in car-parts maker Continental AG (CON) in 2008, became a joint-stock corporation in October to improve access to outside funding. The company had net financial debt of about 7.1 billion euros at the end of 2011.
An 18 percent increase in Asian sales last year led revenue increases, while the industrial division’s 15 percent growth exceeded the 13 percent gain at the automotive unit. Growth last year surpassed the company’s targets of more than 10 percent sales growth and an operating margin of more than 13 percent.
Net income grew more than fourteen-fold in 2011 to 889 million euros from 63 million euros a year earlier. Operating profit gained 12 percent to 1.7 billion euros, Schaeffler said.
To contact the reporter on this story: Alex Webb in Frankfurt at awebb25@bloomberg.net
To contact the editor responsible for this story: Chad Thomas in Berlin at cthomas16@bloomberg.net
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