Germany’s Schaeffler said it is cautious for 2023 after missing profit margin estimates for 2022 amid costlier materials and energy and disrupted global supply chains.
Semiconductor shortages have forced global automakers to scrap production plans for millions of cars over the past two years, adding to commodity price inflation, a tight energy market and rising interest rates, which have hurt consumer demand.
Schaeffler, which manufactures high-precision components and systems for powertrain and chassis applications, expects revenue growth of 5 percent to 8 percent and an EBIT margin before special items of between 5.5 percent and 7.5 percent in the current fiscal year, the company said in a statement.
The group, which will propose a dividend of 0.45 euros per share, reported an earnings before interest and taxes (EBIT) margin before special items of 6.6 percent in 2022, compared with 8.8 percent a year ago and below the 6.8 percent forecast in a company-compiled consensus.
The supplier is cautious on the outlook as higher year-on-year wage increases and energy costs will impact all divisions in 2023.
The supplier ranks 29th on Automotive News Europe’s list of top 100 global suppliers, with automotive sales of $8.44 billion in 2021.
