MGDDY Michelin Compagnie Generale Des Etablissements Michelin (PK)

   By Nathan Allen 
 

Schaeffler AG (SHA.XE) confirmed its guidance for 2018 at group level on Wednesday, while making some adjustments to forecasts for individual divisions.

The German automotive supplier expects revenue growth of between 5% and 6% on a constant-currency basis, and free cash flow before mergers and acquisitions of around 450 million euros ($525.7 million). The margin on earnings before interest and taxes and before special items should be between 10.5% and 11.5%, Schaeffler said.

Schaeffler cut the revenue growth forecast at its automotive OEM division by around 1.5 percentage points to between 4.5% and 5.5% to reflect lower demand in China and Europe.

However, the group also said it now expects revenue at its industrial division to grow by between 8% and 9%, compared with a previous estimate of 6% to 7%.

The restatement comes in the wake of a profit warning from fellow automotive supplier Continental AG (CON.XE), which lowered its guidance for the second time this year, citing softer demand for cars in Europe and China and higher costs.

Schaeffler Chief Executive Klaus Rosenfeld said the group was operating in a challenging environment but that it could still hit its targets.

"This is possible because we are both an automotive and an industrial supplier," he said.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

September 19, 2018 02:06 ET (06:06 GMT)

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