| 12:27 AM EST

Schaeffler Profit Slips 2%

#Continental #Schaeffler #europe


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Germany precision bearings maker Schaeffler AG netted €872 million last year compared with €889 million in 2011, despite a 4% revenue gain to €11.1 billion.

Net income was bolstered by a 71% surge to €554 million in the company's share of the profit of Continental AG, in which the company holds a majority stake.

Schaeffler's earnings before interest and taxes tumbled 33% to €1.4 billion last year. EBIT slid to 12.7% of sales from 15.8% in 2011.

The company says revenue climbed 18% in North America, 10% in Asia and less than 1% in Europe in 2012. Sales increased 7% to €7.7 billion at Schaeffler's automotive unit but declined 2% to €3.4 billion at its industrial business.

The company predicts its revenue will grow 4% this year, and EBIT margin will hold steady at about 13%.