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CONSUMER CYCLICALS: Schaeffler (SHAEFF Baa3/BB+/BB+): Combined Guidance

CONSUMER CYCLICALS

Credit negative. Bonds up to 75c lower this morning.

  • Vitesco forecasts have been adjusted down on BEV weakness, affecting combined guidance, with consolidation expected in 4Q24. Schaeffler’s Bearings & Industrial Solutions is also showing weak performance.
  • Schaeffler now sees FY24 adj. EBIT margin of 5-8% (down 1%; consensus around 7%), FCF €200-300mn (down €100mn). 
  • Preliminary 2Q24 figures show 4% LfL revenue growth and 4.9% EBIT margin, down from 7.1% YoY. FCF is €75mn, down 27% YoY.

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