Schaeffler stock: Focus on takeover of Vitesco

Last Updated: 6. März 2024By

The Schaeffler share initially plunged after the presentation of the business figures, including the outlook. However, the stock has since stabilized at around 6.50 euros. Since the beginning of the year, the share of the automotive and industrial supplier has increased by around 14 percent (as of March 6, 2024, approximately 9:30 a.m.).

The latest figures are mixed: While the company has increased its revenue, its net profit has dropped compared to 2022. And much of this year’s performance is tied to the acquisition of drive specialist Vitesco Technologies. In the long term, the merger offers opportunities for Schaeffler, but there are still some question marks in the short term, including the forecast for 2024.

Schaeffler with mixed figures With around 16.3 billion euros in revenue in 2023, this was an increase of almost 6 percent in currency-adjusted terms. And the EBIT margin before special effects was in line with the company’s own forecast at 7.3 percent. However, this slightly missed analysts‘ expectations. In the end, Schaeffler earned 310 million euros, significantly less than the previous year’s 610 million euros.

This is mainly due to the planned acquisition of Vitesco, which Schaeffler plans to complete in the 4th quarter of 2024. Therefore, for the full year, Schaeffler is forecasting „significant revenue growth“ and an EBIT margin before special effects between 6 and 9 percent. The outlook for 2024 is directly related to the planned acquisition.

Schaeffler share: Opportunities and uncertainty The year 2024 is expected to be a transitional year for Schaeffler, dominated by the acquisition of Vitesco. The vague forecasts indicate that there are still some questions, especially regarding the timing. However, the plan is to include Vitesco in the group’s financial statements in the 4th quarter of 2024 – in the short term, this development is likely to be reflected in the Schaeffler share price.

In the long term, Schaeffler is primarily trying to position itself better in the field of electromobility through the integration of the drive specialist. There are definitely opportunities through synergy effects and a major player is emerging. However, investors should not expect any miracles from the Schaeffler share, especially in the next few quarters.