Analysts note improved Schaeffler outlook, continuing risks

Responding to Schaeffler Group’s recently published second quarter results, including a margin of 15.3 per cent for the quarter, financial analysts have praised the “very respectable results”. However, writing in an investor’s not dated 2 September, Morgan Stanley also noted risked associated with the company’s outlook and pointed out that margins were down 150 basis points year-on-year and 220 basis points quarter-on-quarter due to “higher raw material costs and ongoing expansion costs.”

Nevertheless they affirmed that, although consensus projections are not available for Schaeffler, these results are unlikely to have any major effects on Continental AG’s, which it is the major shareholder in, share price.

Moreover, company does not address 2012 in its outlook statement – again, as expected – therefore leaving little to analyze or read-across before the conference call (12 UK time).

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