Full-year profit fell in 2023 for German industrial and automotive supplier Schaeffler AG compared to 2022, it reported on Tuesday.
Schaeffler reported that its fiscal 2023 net income attributable to shareholders of the parent company amounted to €310 million ($336 million), down from last year's €557 million.
The decline mainly reflected special items primarily attributable to the proposed acquisition of Vitesco Technologies Group AG.
Adjusted net income amounted to €623 million, compared to the prior year's €610 million.
Earnings before financial result and income taxes, or EBIT, were €834 million, down from the prior year's €974 million.
Adjusted EBIT amounted to €1.19 billion, compared to €1.05 billion a year ago.
Adjusted EBIT margin before special items was 7.3%, up from 6.6% last year, mainly due to the favourable impact of volumes and sales prices.
Schaeffler's revenue grew to €16.3 billion from the prior year's €15.8 billion. Revenues went up 5.8% at constant currency, mainly attributable to increased volumes.
Sales prices had an additional favourable impact on revenue. Further, Schaeffler proposed a dividend payment of €0.45 per common non-voting share, same as last year.
The company also announced that the dividend payout ratio will be raised to 40 to 60% of adjusted net income attributable from the previous 30 to 50% going forward.
Looking ahead for 2024, reflecting the planned merger with Vitesco Technologies, Schaeffler is forecasting considerable revenue growth at constant currency, and to achieve an EBIT margin before special items of 6 to 9%.
