UPDATE 1-Schaeffler misses FY profit margin estimates due to rising costs, supply chain disruption

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds outlook for 2023, context, dividend) March 7 (Reuters) - German automotive supplier Schaeffler on Tuesday missed estimates for full-year core profit margin, citing higher material and energy prices, disrupted global supply chains and market- and environment-based inefficiencies. Semiconductor shortages forced global automakers to scrap production plans for millions of cars over the past two years, adding to commodity price inflation, a tight energy market and rising interest rates, which have dampened consumer demand. The Bavarian industrial company, which manufactures high-precision components and systems for powertrain and chassis applications, sees revenue growth of 5% to 8% and an EBIT margin before special items of between 5.5% and 7.5% in the current fiscal year, adding that it is cautious on the outlook as higher year-on-year wage increases and energy costs will impact all divisions in 2023.


The group, which will propose a dividend of 0.45 euros per share, reported an earnings before interest and taxes (EBIT) margin before special items of 6.6% in 2022, compared with 8.8% a year ago and below the 6.8% forecast in a company-compiled consensus.
(Reporting by Johannes Toft Thyssen and Diana Mandiá, Editing by Louise Heavens)

diana.mandiaalvarez@thomsonreuters.com))
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