The German bearing manufacturer, Schaeffler AG (SCFLF.OB), reported on Tuesday a net income of 310 million euros for fiscal 2023 to the shareholders of the parent company. This figure is a decrease from the previous year's 557 million euros. The decline is primarily attributed to special items, specifically the impending acquisition of Vitesco Technologies Group AG.
Adjusted net income, however, rose to 623 million euros, an increase compared to the 610 million euros of the previous year. Earnings before financial result and income taxes, or EBIT, was 834 million euros, which was lesser than the former year's 974 million euros.
Adjusted EBIT rose to 1.19 billion euros, an increase from 1.05 billion euros a year ago. The adjusted EBIT margin before special items rose to 7.3 percent from 6.6 percent the year before, primarily due to the favorable impact of volumes and sales prices.
Schaeffler's revenue grew from the previous year's 15.8 billion euros to 16.3 billion euros. This 5.8 percent revenue increase, at constant currency, was largely due to augmented volumes, and sales prices also had a positive influence on revenue.
Moreover, the same dividend payment as the previous year, 0.45 euros per common non-voting share, was proposed by Schaeffler. They also announced that the dividend payout ratio will be increased to 40 to 60 percent of the adjusted net income attributable from the previous 30 to 50 percent in the future.
Looking forward to 2024, Schaeffler, considering the planned merger with Vitesco Technologies, predicts considerable revenue growth at constant currency and aims to achieve an EBIT margin of 6 to 9 percent before special items.
