Schaeffler Riding High on Electric Mobility Surge
E-Mobility's Progress Steadily Accelerates, According to Schaeffler - E-Mobility Progression: Schaeffler Highlights Advancements
Feeling the electrifying energy, Schaeffler's CEO, Klaus Rosenberg, confirms a positive vibe in the electric mobility sector. According to Rosenberg, interviews with the German Press Agency indicate promising progress. In the first quarter of the year, Schaeffler garnered a record-breaking three billion euros in orders related to electric mobility, following the merger with Vitesco, an electric drive specialist.
Electric mobility still in the red? Not so fast!
While Schaeffler is closing in on meeting its full-year forecast for this segment, the earnings reveal that electric business is still running at a loss. The first quarter saw a 7.8% increase to 1.174 billion euros, with a pre-tax, pre-interest, and pre-special-items loss of 268 million euros.
First-quarter revenue for Schaeffler dropped by 3.5% year-on-year to 5.9 billion euros, and the pre-tax, pre-interest, and pre-special-items profit dipped from 287 million euros in the previous year to 276 million euros. Despite the challenging environment, Rosenfeld remains optimistic.
Reducing the dependency on China
Rosenfeld pinpointed the Vitesco acquisition as a strategic move to lessen Schaeffler's reliance on the Chinese market. Despite ongoing concerns in the U.S., he emphasized the company's determination to weather the storm of rising tariffs with restraint.
Part of the world's top 10 automotive suppliers, Schaeffler employs over 113,000 employees worldwide.
- Schaeffler India
- Electric Mobility
- Vitesco Technologies
- Klaus Rosenberg
- German Press Agency
Insights
Switching gears, Schaeffler's electric mobility segment shows remarkable growth and improved financial health, promising a promising future. Despite temporary setbacks in other divisions, Schaeffler Posts a 4% year-on-year overall sales growth in Q1 2025, mainly due to the robust growth in Electric Mobility.
The electric mobility segment's EBIT margin remains robust, at around 12.4%-12.7%, backed by cost savings and increased R&D expenses on electric mobility technologies. Schaeffler India, a key part of Schaeffler's global operations, reported a 14.1% revenue increase and a 16.5% net profit surge in Q1 2025, driven by the growth of automotive technologies, including electric mobility products.
Looking ahead, Schaeffler remains committed to boosting R&D spending, particularly focusing on electric mobility innovations to ensure long-term growth and competitive edge. With the global automotive sector embracing electric vehicles and Schaeffler's targeted investments and sales growth in electric mobility, the segment's future outlook remains bright,
- Schaeffler's electric mobility segment, a focus area for the company, demonstrates significant growth and enhanced financial health, holding promise for a bright future.
- In an effort to reduce dependence on the Chinese market, Schaeffler made a strategic acquisition of Vitesco Technologies, a move that would also strengthen its electric mobility sector.
- Schaeffler's CEO, Klaus Rosenberg, expressed optimism about Schaeffler's resilience in navigating the turmoil brought about by rising tariffs in the U.S.
- Looking at the broader scope, Schaeffler continues to invest heavily in research and development, specifically on innovations in renewable energy, particularly in the realm of electric mobility, to secure long-term growth and maintain a competitive edge.
