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AUTOMOTIVE: Schaeffler (SHAEFF Baa3[N]/BB+/BB+): Profit Warning

AUTOMOTIVE

Credit negative for both Schaeffler and the auto sector on read-across.

  • Schaeffler posted preliminary FY24 figures. Revenue missed consensus by 4% following a weak 4Q.
  • Adj. EBIT margin is seen at 4.5%, below 5-8% guidance. Consensus was 5.9%.
  • FCF was €360mn, with consensus around €200mn (3 estimates) and ahead of €200-300mn guidance. We expect this was working capital driven, with no further details currently available.
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Credit negative for both Schaeffler and the auto sector on read-across.

  • Schaeffler posted preliminary FY24 figures. Revenue missed consensus by 4% following a weak 4Q.
  • Adj. EBIT margin is seen at 4.5%, below 5-8% guidance. Consensus was 5.9%.
  • FCF was €360mn, with consensus around €200mn (3 estimates) and ahead of €200-300mn guidance. We expect this was working capital driven, with no further details currently available.