...August 22, 2024 Headwinds in the Bearings & Industrial Solutions (B&IS) segment and at Vitesco Technologies Group AG (Vitesco) are set to weigh on Schaeffler's credit metrics in 2024. Tough competition in the wind business in China, weak demand in the company's industrial automation sub- segment in Europe, in addition to inventory write-downs, and warranty provisions caused a sharp drop in B&IS' EBIT margin (as adjusted by Schaeffler) to 2.5% in second-quarter 2024, down from 7.4% in second-quarter 2023. This--together with Vitesco's recent profit warning related to sluggish auto production levels, in particular for battery electric vehicles (BEVs)--led Schaeffler in July 2024 to lower its guidance for the 2024 EBIT margin by one percentage point to 5%-8% and reduced its free cash flow guidance by 100 million to 200 million-300 million. Although we do not foresee a material improvement in the B&IS and Vitesco segments in second-half 2024, we expect Schaeffler's strong aftermarket business...
