Schaeffler restructuring: shut down five factories, 900 job cuts

According to foreign media reports, because the European and Chinese market demand is weak, the German schaeffler bearings manufacturers profits fell sharply in 2018. The company expects the global economy will slow further in the coming years, the environment facing the global auto industry will still be very demanding and challenging, so the company is considering closing five factories ( Most of the factory workers are less than 200) , cut product variety and cut 900 jobs, including 700 employees in Germany. Schaeffler's latest results show that in 2018 the company adjusted earnings before interest and tax by 13% to 13. 3 800 million euros, revenue growth. 9%. Schaeffler automotive sector growth slowed in the second half of 2018, mainly because the new European emission standards WLTP, market demand; The trade friction between China and the United States also harm the order of market demand in China. In addition, schaeffler especially impacted by the auto industry electrification. Because, unlike internal combustion engine, electric cars, almost without the use of the bearing. Schaeffler chief executive Klaus Rosenfeld said. 'we hope to further reduce the reliance on internal combustion engine, more widely use of the opportunities brought about by diversification and electrification. Although we started late in the field of electric vehicles, but we are now trying to catch up. 'Local time on March 6, schaeffler announced a restructuring plan called RACE, the plan will cost 60 million euros in 2019. Rosenfeld described the restructuring plan as 'at the same time of brake acceleration', because the plan is aimed at the initial stage will increase company profits of about 90 million euros, or ebit margin increases by 100 basis points. The company expects 2019 revenue would rise by 1 to 3%, excluding special items ebit margin will amount to 8% 9%.