By Amir Orusov
(Reuters) -German machine and car parts maker Schaeffler reported first-quarter revenue below market expectations due to general softness in the industry, but said the impact of U.S. tariffs on its business was manageable.
Schaeffler said on Wednesday its revenue fell 2.9% in constant currency to 5.92 billion euros ($6.73 billion) in the January-March quarter, missing a Vara consensus estimate of 6.11 billion. It also confirmed its full-year forecast.
However, CEO Klaus Rosenfeld told Reuters that the overall market environment was not set up for significant growth, while the ongoing trade conflicts made it harder to make reliable plans.
Uncertainties around U.S. tariffs have caused a number of companies, including automakers Mercedes-Benz, Stellantis, General Motors and Volvo Cars, to pull their financial forecasts.
The tariff situation remains dynamic and therefore it is hard to calculate the final impact on Schaeffler’s business, Rosenfeld said.
“We will assess how much of the tariffs’ cost can be absorbed and how much can be passed on to customers in the different businesses,” he said, adding that in their current form, the tariffs’ impact seemed to be manageable.
Schaeffler’s peers SKF and Valeo have previously said they were passing on tariff costs to customers.
More than 80% of products invoiced by Schaeffler from Canada and Mexico are compliant with the United States-Mexico-Canada Agreement (USMCA), it said. Goods complying with the trade deal are excluded from Trump’s duties.
“As some of our customers pick up parts that we produce in Mexico, the impact is rather smaller than people may expect,” Rosenfeld said.
Aside from tariffs, Europe’s auto sector is being tested by multiple hurdles such as high production costs, falling demand, rising competition from China, and managing the shift to electric vehicles.
($1 = 0.8803 euros)
(Reporting by Amir Orusov in Gdansk; editing by Milla Nissi-Prussak)
