Schaeffler targets long term stable operating margins as the company expects the current economic environment in key and major markets to stay positive.
Klaus Rosenfeld, the German engineering group’s CEO, confirmed during a recent German weekly Automobilwoche interview that Schaeffler targets operating earnings before interest and tax (EBIT) margin ranging from 12% and 13% for the whole year. Rosenfeld stated that Schaeffler should be ready to handle a greater scale in the long run.
Rosenfeld also stated that with the current economic and political risks, which recently difficult to assess, today’s economic trend in general when it comes to the company’s main markets remained positive.
Schaeffler is an engineering group that produces systems and components that are used in industrial and automotive applications. The group at the moment generates in excess of half of the company’s total sales in Europe, which approximately about a fifth of the total in the Americas region, and also about 10% in China.
The company is currently the largest shareholder in Continental, a German tire and auto parts maker, which posted an overall EBIT margin of about 13.1% in the year’s first half. Rosenfeld also stated that as Schaeffler targets long term stable operating margins, positive developments during the year’s first half continued up to the third quarter.