BERLIN -- Indebted German auto-parts supplier Schaeffler reaffirmed its business outlook for 2012 on Tuesday, targeting revenue growth of more than 5 percent and an EBIT margin of more than 13 percent.
Schaeffler, the biggest shareholder in German auto-parts supplier and tiremaker Continental, said first-quarter earnings before interest and tax (EBIT) plunged 14.9 percent to 401 million euros ($502.77 million) on upfront costs to increase capacities.
Schaeffler accumulated 12 billion euros of debt from purchasing a controlling stake in Continental in 2008.
Last year, Schaeffler added 6,500 employees to its 74,000 global workforce.
The company is a supplier of bearings, engine components, clutch and transmission systems and dampers. It ranks No. 32 on the Automotive News Europe list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $5.4 billion in 2010.
Sources: Bloomberg and Reuters