Schaeffler AG: Schaeffler adjusts 2018 full-year guidance

DGAP-Ad-hoc: Schaeffler AG / Key word(s): Change in Forecast Schaeffler AG: Schaeffler adjusts 2018 full-year guidance 30-Oct-2018 / 09:46 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Schaeffler adjusts 2018 full-year guidance HERZOGENAURACH, October 30, 2018. Schaeffler AG, Herzogenaurach (ISIN DE000SHA0159, WKN SHA015) has decided to adjust its full year 2018 guidance for the Schaeffler Group as a whole and for its Automotive OEM and Automotive Aftermarket divisions. Against the background of increasing market volatility in the global automotive business (WLTP, trade conflicts), the adjustment of the full year 2018 Group guidance is mainly triggered by a further deterioration of market conditions in the company's Automotive OEM business in China. Furthermore, weaker-than-expected third-quarter sales performance in its Automotive Aftermarket division contributed to the guidance change. Based on preliminary figures, the Schaeffler Group generated revenues of EUR 3,521 million (prior year: EUR 3,434 million) and third-quarter earnings before financial result and income taxes (EBIT) of EUR 376 million (prior year: EUR 416 million). In the third quarter, the Group's revenues grew 3.7 percent at constant currency. On this basis, revenues for the first nine months of the year were EUR 10,714 million (prior year: EUR 10,480 million), corresponding to growth of 5.1 percent at constant currency. The Group's EBIT before special items in the third quarter 2018 was EUR 355 million (prior year EUR 416 million) and EUR 1,150 million (prior year: EUR 1,196 million) for the first nine month, corresponding to an EBIT margin before special items in the third quarter of 10.1 percent (prior year 12.1 %) and of 10.7 percent (prior year: 11.4 percent) for the first nine months. The Schaeffler Group's free cash flow before inflows and outflows for M&A activities reached EUR 201 million (prior year EUR 333 million) and EUR 127 million in the first nine months, which is attributable primarily to lower earnings quality and the higher level of capital tied up in inventories. The third-quarter and nine-month results for the Group's three divisions are as follows:   Division (preliminary figures) Automotive OEM Automotive AM Industrial   Q3 18 9M18 Q3 18 9M18 Q3 18 9M18 Revenues in EUR m Change1) 2,191 +3.2% 6,778 +4.3% 476 -3.0% 1,401 +1.3% 854 +9.4% 2,535 +9.8% EBIT in EUR m2) EBIT margin 172 7.9% 596 8.8% 80 16.8% 256 18.3% 103 12.1% 298 11.8%   1) at constant currency 2) before special items On the basis of preliminary figures, Schaeffler is now guiding for 2018 full-year revenue growth of 4 to 5 percent at constant currency (previously 5 to 6 percent), an EBIT margin before special items of 9.5 to 10.5 percent (previously 10.5 to 11.5 percent), and free cash flow before inflows and outflows for M&A activities of approximately EUR 300 million (previously approximately EUR 450 million). The guidance for each of the divisions now is as follows:   Division (guidance) Automotive OEM Automotive AM Industrial   Old3) New4) Old3) New4) Old3) New4) Revenue growth1) (in %) 4.5-5.5% 3.5-4.5% 3-4% 1.5-2.5% 8-9% 8-9% EBIT margin2) (in %) 8.5-9.5% 8-8.5% 16.5-17.5% 17-17.5% 10-11% 10.5-11%   1) at constant currency 2) before special items 3) as at September 19, 2018 4) as at October 30, 2018 Forward-looking statements and projections Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue. 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 14 billion in 2017. With more than 92,000 employees, Schaeffler is one of the world's largest family companies and, with approximately 170 locations in over 50 countries, has a worldwide network of manufacturing locations, research and development facilities, and sales companies.   Schaeffler   Twitter   Facebook   Youtube   Contact: Thorsten Möllmann, Senior Vice President Global Communications & Branding, Schaeffler AG, Herzogenaurach, Germany Phone [phone], email: [e-mail] Dr. Axel Lüdeke, Head of Business and Financial Communications & PR, Schaeffler AG, Herzogenaurach, Germany Phone [phone], email: [e-mail] Renata Casaro, Head of Investor Relations, Schaeffler AG, Herzogenaurach, Germany Phone [phone], email: [e-mail] Jens Briemle, Investor Relations, Schaeffler AG, Herzogenaurach, Germany Phone [phone], email: [e-mail] 30-Oct-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language:	English
Company:	Schaeffler AG
	Industriestr. 1-3
	91074 Herzogenaurach
	Germany
Phone:	09132 - 82 0
E-mail:	[e-mail]
Internet:	www.schaeffler.com
ISIN:	DE000SHA0159
WKN:	SHA015
Indices:	MDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange

End of Announcement	DGAP News Service

739275  30-Oct-2018 CET/CEST