German ball bearing company Schaeffler, which competes with SKF and which warned of profit for the full year 2019 as late as July 29, reports an adjusted operating profit of EUR 556 million for the first half (794).
The German company made a profit warning as late as last week.
"We have initiated programs to improve cost and capital efficiency in all three divisions," the company's CEO Klaus Rosenfeld writes in the report after the loss in earnings.
Revenues amounted to EUR 7.2 billion in the first half of the year, on a par with the corresponding period last year. The adjusted operating margin was 7.7 percent (11.0).
The company expects, according to the information given this week, that revenue growth will fall between -1 percent and + 1 percent in constant currency. The previous forecast was 1-3 percent.
The operating margin before non-recurring items was adjusted down to between 7 and 8 percent, compared with the previous 8-9 percent. The company's focus is now on reaching the new forecasts, according to the company's CEO.
"After the difficult first six months, which did not live up to our expectations, we believe the market conditions will continue to be challenged even in the second half of 2019. This is especially true for the global automotive industry, whose permanent weakness is only partially offset by our strong industrial business, "writes Schaeffler's CEO.
