Schaeffler's Electric Journey: Navigating the Electrified Future
Electric Propulsion Progression Persists According to Schaeffler - Electrical Mobility Approaching According to Schaeffler
Venture into the electrified world with Schaeffler
Schaeffler, a leading automotive and industrial conglomerate, is harnessing the power of electric mobility's tide. Klaus Rosenfeld, the company's CEO, expressed optimism, stating, "There's a bloody good chance things are shifting." The first quarter of 2025 saw orders worth three billion euros in the electric segment—a record for Schaeffler, following its recent merger with electric drive specialist Vitesco.
An Electrifying Yet Profitable Segment, but Challenges Persist
Despite the growth, Schaeffler foresees continued losses in the electric segment, as indicated in their first quarter earnings. The electric business climbed by 7.8 percent to 1.174 billion euros, yet a pre-tax, pre-interest, and pre-special items loss of 268 million euros was recorded. Nevertheless, the company remains on track to meet its full-year finance projection for this segment.
Global Footprint Shows Strength
The total sales for the first quarter of 2025 dropped by 3.5 percent year-on-year to 5.9 billion euros. Pre-tax, pre-interest, and pre-special items profit fell to 276 million euros from the previous year's quarter. Despite the challenging environment, Rosenfeld remains resolute, commenting, "Turbulence surrounds us, but Schaeffler remains a force to reckon with."
Less China Reliance, Persistent US Concerns
The integration of Vitesco has lessened Schaeffler's dependence on the Chinese market. The United States, on the other hand, continues to be a source of concern due to ongoing tariff issues. Rosenfeld shared, "We're readying ourselves to absorb the tariffs with discretion."
Schaeffler: A Global Powerhouse
Schaeffler is one of the top ten automotive suppliers globally, with over 113,000 employees around the world. The company's headquarter lies in Herzogenaurach, Germany.
- Schaeffler AG
- Electric Mobility
- Vitesco Technologies
- Klaus Rosenfeld
- German Press Agency
Enrichment Data:- The acquisition of Vitesco Technologies significantly boosted Schaeffler's revenue growth by 13% in the fiscal year 2024, reaching 18.2 billion euros.- The EBIT margin for the Schaeffler Group before special items was 4.5% in 2024.- The E-Mobility segment exhibited promising growth in Q1 2025, but it reported losses in the pro forma result for the E-Mobility division in 2024 compared to Vitesco Technologies' standalone results prior to the merger.- The acquisition's complexity and changes in accounting practices have introduced challenges in directly comparing pre-merger financials to the current results.- The acquisition of Vitesco Technologies has lowered Schaeffler's dependence on the Chinese market. Changes in the United States continue to be a cause for worry due to ongoing tariff concerns.
- Schaeffler, in collaboration with Vitesco Technologies, is bolstering the vocational training programs in EC countries to address the increasing demand for skilled workforce in the expanding electric mobility sector, ensuring a seamless integration of technology into vocational training programs.
- Recognizing the potential of technology in the electrified future, Schaeffler is considering the integration of advanced technologies within its vocational training modules, ensuring aspiring technicians are adequately prepared to navigate the complexities of the electrified automotive industry.
