Schaeffler cuts 2028 sales target on weaker car market outlook, shares fall

By Amir Orusov and Christina Amann

July 31 (Reuters) - German machine and car parts maker Schaeffler cut its medium-term sales target on Friday, citing weaker market expectations particularly for passenger cars and light commercial vehicles, sending its shares 13% lower by 1135 GMT.

The company now expects 2028 sales between €24 billion and €26 billion ($27.6 billion and $29.9 billion), down from an earlier range of €27 billion to €29 billion.

It also lowered the 2028 margin target for its E-mobility division to a range of 0% to -4%, having previously expected break-even or better.

"The forecast cut is primarily driven by developments in the U.S., where major customers have withdrawn orders," CEO Klaus Rosenfeld told Reuters.

While Rosenfeld described E-mobility as a long-term growth market, he said market conditions had changed since Schaeffler's 2025 planning assumptions.

"E-mobility remains a growth area, but market conditions mean we cannot maintain the current pace," Rosenfeld said, adding the market environment remained challenging, marked by intense competition for every euro.

Jefferies said the path to break-even in the E-mobility business remains central to the investment case alongside growth opportunities in Schaeffler's other businesses, including defence and humanoid robotics.

Despite cutting its sales outlook, Schaeffler confirmed its 2028 group targets for an adjusted operating profit margin of 6% to 8% and adjusted free cash flow of €400 million to €600 million.

($1 = 0.8684 euros)

(Reporting by Amir Orusov and Christina Amann, Editing by Miranda Murray and Milla Nissi-Prussak)