Global automotive and industrial supplier Schaeffler presented its interim report for the first half of 2020 on August 4th. Despite significant decline in revenue operating earnings are positive with solid results for Automotive Aftermarket and Industrial divisions.
The impact of the pandemic on the four regions varied. The Greater China region reported constant-currency revenue growth of 3.0 percent for the reporting period due to the recovery emerging there in the second quarter. The remaining three regions experienced considerable revenue decreases for the first six months. Over the course of the month of June, business recovered noticeably across all divisions and regions.
Market trends of each Division
Automotive OEM division revenue for the first half of 2020 fell by 26.8 percent mainly driven by volumes. Order intake for the first six months was good given the difficult environment, with good results of the E-Mobility business Division. The Automotive Aftermarket division reported a volume-driven drop in revenue for the first six months of 14.8 percent in all Regions. Industrial division revenue was down 12.8 percent, with strong growth in Greater China mainly driven by the wind business. Free cash flow before cash in- and outflows for M&A activities for the first half of 2020 exceeded that of the comparable prior year period. Divisional programs and cost reduction measures proved to be effective, and liquidity position remains strong.