By Amir Orusov
(Reuters) -German machine and car parts maker Schaeffler reported lower-than-expected operating profit for the second quarter on Wednesday, citing weaker demand in Europe and China, adverse currency effects and U.S. tariffs.
Shares in the company fell by 5%.
Schaeffler said its adjusted earnings before interest and taxes fell 15.8% to 205 million euros ($237.3 million) in the quarter, missing analysts’ forecast of 227 million euros in a company-compiled consensus. The corresponding margin of 3.5% also fell slightly short of the 3.8% average estimate.
Schaeffler said its quarterly sales declined in Europe by 5% due to a weak market.
While sales in Greater China region fell by 6.7%, CEO Klaus Rosenfeld told Reuters the decline was a “temporary effect as one major program is winding down, while the new ones haven’t fully ramped up yet.”
Despite the challenges, “the first weeks of the summer months suggest that we are on track to achieve full-year guidance,” Rosenfeld said.
($1 = 0.8639 euros)
(Reporting by Amir Orusov in Gdansk; editing by Milla Nissi-Prussak and Matt Scuffham)
