IR release

Schaeffler AG reduces its earnings guidance for 2017

Herzogenaurach, June 26, 2017.  The Board of Managing Directors of Schaeffler AG has decided today to reduce its guidance for the EBIT margin before special items from hitherto 12-13 percent to 11-12 percent for the business year 2017. This is due to a substantially lower earnings development in the second quarter 2017 compared to the previous year. At the same time, guidance for Free Cash Flow has been reduced from approximately 600 million EUR to approximately 500 million EUR for 2017.

While results in the Industrial business are developing in line with expectations, the lower EBIT development of the Schaeffler Group in the second quarter 2017 is primarily due to the following reasons:

1.	Increased pricing pressure in the Automotive OEM business and rising cost for new product launches
2.	Higher R&D cost and other expenses due to additional projects in the area of e-mobility 
3.	Temporary supply chain shortages in the Automotive Aftermarket business

The Schaeffler Group confirms its revenue guidance for the full year. The company continues to expect its revenue to grow by 4-5 percent excluding the impact of currency translation for the business year 2017. 

The Schaeffler Group plans to pre-release preliminary results for the first half of 2017 by mid July. From today’s point of view, the company expects revenue growth excluding the impact of currency translation of approximately 4 percent and an EBIT margin before special items of approximately 11 percent in the first six months 2017.

About Schaeffler
The Schaeffler Group is a global automotive and industrial supplier. Top quality, outstanding technology, and exceptionally innovative spirit form the basis for the continued success of the company. By delivering high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications, the Schaeffler Group is already shaping “Mobility for tomorrow” to a significant degree. The technology company generated sales of approximately EUR 13.3 billion in 2016. With around 86,600 employees, Schaeffler is one of the world’s largest family companies and, with approximately 170 locations in more than 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales companies.

Contact:
Christoph Beumelburg, Senior Vice President Communications, Marketing and Investor Relations, Schaeffler AG, Herzogenaurach
tel. +49 (0)9132 82 4440, e-mail: ir@schaeffler.com