Schaeffler Group’s automotive division reports revenue growth of 6%
German auto parts supplier Schaeffler expects to increase sales this year after posting higher revenue and profit in 2016 and proposes to raise the dividend, it said.
The company increased its revenue to approximately US$ 14.20 billion (EUR 13.3 billion) from US$ 14.09 billion (EUR 13.2 billion) in the previous year. At constant currency, this represents a growth rate of 3.4%.
Sales adjusted for foreign exchange rate effects may rise between 4 and 5% in 2017, compared with 3.4% growth last year, the company said in a statement.
Earnings before financial result and income taxes (EBIT) before special items reached US$ 1,814.5 million (EUR 1,700 million) up from US$ 1,788 million (EUR 1,676 million) in 2015.
The Automotive division acted as the main driver behind the company’s performance in 2016, reporting revenue growth of 6.0% at constant currency compared to the prior year. Thus, the Automotive business once again expanded faster than global production volumes for passenger cars and light commercial vehicles (4.8%).
The Industrial division declined in a challenging market environment. Its revenue declined by 4.8% (at constant currency). While the wind, two wheelers, and aerospace sectors were able to grow their revenue, low levels of demand had an adverse effect on revenue, primarily in the raw materials and rail sectors.
The Schaeffler Group has generated approximately 2,500 new jobs in 2016. As at December 31, 2016, the group had 86,662 employees, about 3% more than in the prior year.
In Mexico, the company operates three manufacturing sites, one in the state of Guanajuato and two more in Puebla as well as a distribution center in Mexico City.