BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Schaeffler AG (SCFLF.OB) announced its program RACE, which is designed to sustainably increase the Automotive OEM division's efficiency and optimize its portfolio. The company said the program was made necessary by a number of external and internal factors that had significantly weakened the division's EBIT margin before special items for 2018. The company said the overriding goal of RACE is to sustainably improve the margin over the next three to four years and to generate an EBIT margin percentage in the high single digits going forward.
RACE consists of three stages. The initial stage of the program, which started on January 1, 2019, covers the next 18 to 24 months. The Initial stage focuses on six earnings levers, and includes measures aimed at improving earnings by approximately 90 million euros (EBIT margin 100 basis points).
As part of the first stage of program RACE, the division plans to further consolidate its European plant network. At the present time, it is anticipated that the changes will result in a reduction by about 900 positions, including about 700 positions in Germany.
Separately, Schaeffler announced plans to issue investment grade bonds on the basis of its full year figures for 2018 and depending on market conditions. Schaeffler established a debt issuance program with a program volume of up to 5 billion euros for the issuance of investment grade bonds on the debt capital markets.
Copyright RTT News/dpa-AFX
© 2019 AFX News
