BERLIN (Reuters) - Shares in German bearings maker Schaeffler rose 6 percent on Wednesday after the company confirmed its full-year guidance, saying it expected improving market conditions for its automotive business in the second half of the year.
Schaeffler, which dropped out of Germany’s mid-cap index in March, said it expected revenue to rise by 1 to 3 percent at constant currencies in 2019 and an operating profit margin before special items of 8 to 9 percent.
The company reported earnings before interest and taxes (EBIT) of 230 million euros ($257.39 million) in the first quarter, a decline of roughly 40 percent, citing difficult market and competitive conditions, especially in the automotive business.
However, CEO Klaus Rosenfeld said in a statement that he expected an improvement in market conditions in the second half of the year, upholding the financial targets for both the automotive business and the group.
Schaeffler rose as much as 6.4 pct after the earnings release on Wednesday before trimming the gains to trade 1.4 percent higher at 1029 GMT.
Reporting by Riham Alkousaa; editing by Emelia Sithole-Matarise